The Dollar is Doomed

[Meister]

Actually I was referring to The Costa del Sol of Spain, is there another one? The dollar is in a rally now for different reasons. Cash is king, and people fleeing the markets are settling US backed debt. It will swan dive shortly.

Still waiting.

btw, I believe the US dollar was oversold in the last few months and is now coming back to a realistic level and not because Cash is King. The European economy was firing on 9 cylinders over the last 2 years which is now coming to a halt, that is the main reason for the US dollar strength.

btw, if all this time you were talking about the CDN-US rate, my apologies, but I think the CDN-US rate is not very significant in global terms.

 

[wonkyknee]

Euro looks to be in worse shape than the U.S dollar now.

Other currencies: Iceland has fallen. Finland followed.

China is the next world power, but has far too many U.S dollars at stake to see the U.S dollar collapse!

 

[danmand]

Euro looks to be in worse shape than the U.S dollar now.

Other currencies: Iceland has fallen. Finland followed.

China is the next world power, but has far too many U.S dollars at stake to see the U.S dollar collapse!

There is no sense in comparing the $ to other fiat currencies. There are too many $'s
floating around, therefore they will fall in value, not necessarily against Euro's or other
fiat currencies, but against hard assets, like oil and precious metals.

 

[wonkyknee]

oil is at $84.00 now...heading for $70...how did everyone get the supply demand equation on oil so wrong (ie: $140/barrel last year)

 

[Mcluhan]

Still waiting.

btw, I believe the US dollar was oversold in the last few months and is now coming back to a realistic level and not because Cash is King. The European economy was firing on 9 cylinders over the last 2 years which is now coming to a halt, that is the main reason for the US dollar strength.

btw, if all this time you were talking about the CDN-US rate, my apologies, but I think the CDN-US rate is not very significant in global terms.

Again, the upward pressure on the USD is currently because of debt settlements converting, so there is a massive demand for cash. Its short term and will continue until the Market crash ends? (i am predicting dow=4,500 as the bottom, the experts are saying now 7,500) As far as the USD/CAD (used to be referred to as CDN is now CAD) exchange rate not being globally significant, correct. USD is still the worlds base currency, and has been since 1946/7 vis-a-vis Marshall plan ( i can hear the arguments against this idea now forming on some of the keyboards of TERB, but that's because they don't understand the 1973 OPEC/Kissinger document, the world currency base is actually a non-existent currency called the energy dollar, and it expresses itself in USD ). These are not radical ideas btw...just physical realities. The dow at 4,500 IS a radical idea, but its my call and i am sticking to it.

You are confused on your understanding of "Cash is King". It means if you have cash you rule. Soon Gold will be King....its about to be annointed by OPEC. When that happens, buy lots of dry goods and canned. There is a deal on white tuna at zellers this week.

 

[Gyaos]

oil is at $84.00 now...heading for $70...how did everyone get the supply demand equation on oil so wrong (ie: $140/barrel last year)

Well, I remember being chastised for it here on Terb. No doubt by idiots that had money invested in the stuff. Truth hurts, see them run with the Taliban.

Gyaos.

 

[Meister]

Again, the upward pressure on the USD is currently because of debt settlements converting, so there is a massive demand for cash.

Maybe, but I think the real reason is Interest Rate Euro = 3.75, US = 1.5 I think. Interest Rate in Europe must come down more, where the US can't go much lower, ie US rates gotta go up sooner than later and with it the US dollar. Remember a lot of currency rates are based on future speculations, not on present day situations.

 

[Meister]

1 Euro = 1.245 USD

 

[Mcluhan]

1 Euro = 1.245 USD

http://www.financialsense.com/Market/daily/tuesday.htm

 

[Meister]

http://www.financialsense.com/Market/daily/tuesday.htm

You predicted an imminent nosedive at 1.38. It is now 1.25 a whopping 10% in the wrong direction, which is huge in currencies. Why don't you just admit you were wrong like you were wrong on your other predictions like "skyrocketing Gold" and "CDN dollar not tanking".

Obviously, the US dollar will drop again. What do you expect after a rise from 1.60 to 1.25? Just not right now.

 

[Mcluhan]

You predicted an imminent nosedive at 1.38. It is now 1.25 a whopping 10% in the wrong direction, which is huge in currencies. Why don't you just admit you were wrong like you were wrong on your other predictions like "skyrocketing Gold" and "CDN dollar not tanking".

Obviously, the US dollar will drop again. What do you expect after a rise from 1.60 to 1.25? Just not right now.

Eh, relax. I never said the USD was going to crash TOMORROW. As far as a prediction goes i spelled out the force that was driving the dollar up, and that force is still acting upward (maybe you noticed). Its kinda obvious what's driving the US dollar, don't ya think? It will continue to zoom up until this market sell-off ends (same reason as before), at that point, it has nowhere to go but down. This move is obvious to anyone with half a brain - even you. I sent you a graph that lays out the argument nicely, to see the math. As for when the equities market sell-off ends who knows? The timing is impossible to predict, but the trend is not. As for admitting i'm wrong, i'll be happy to do that IF the dollar maintains its high AFTER the equities liquidation subsides, which doesn't look like its going to be anytime soon. If you want a best guess on that, I would say the end of Mar/09, when the last of the hedgies finish popping their bubble. There's a lot of blood to be spilled yet, so go buy some popcorn, sit back and watch. If Citadel caves in, it could be faster. Meanwhile, take a pill.

 

[Meister]

You'd make a good politician, lol. Kinda like our Cdn politicians 'The economy is sound, but there are challenges'.

btw, you'd be crazy to make predictions into mid of next year on currencies or just about anything else. Everything these days happens in warp speed. Oil = 80 a few months later Oil = 150, a few weeks later oil = 62.

 

[onthebottom]

This will hurt exports I fear.

Back to the Canadian Peso....

OTB

 

[WoodPeckr]

Back to the Canadian Peso....

OTB

Ah, there's your trademark smugness of old!...

 

[tboy]

Cdn peso at today's rates: Back to 1.29 ....so much for my purchases south of the border!

 

[onthebottom]

You have to love the title of this thread... it's right up there with the imminent attack on Iran....

OTB

 

[WoodPeckr]

You have to love the title of this thread... it's right up there with the imminent attack on Iran....

OTB

Sooooo bottie, how's your bushie economy doing?
Real performance being delivered, eh?....

 

[danmand]

Sooooo bottie, how's your bushie economy doing?
Real performance being delivered, eh?....

His avatar has changed, LOL.

 

[onthebottom]

His avatar has changed, LOL.

That happened a while ago, when Hillary left the race....

OTB

 

[danmand]

That happened a while ago, when Hillary left the race....

Why not put it back for a laugh; did it not track the bush years economic performance?