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Is the US dollar bottoming?
cohodk
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http://blogs.stockcharts.com/chart*watchers/2013/03/us-dollar-appears-to-be-bottoming.html
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Excuses are tools of the ignorant
Knowledge is the enemy of fear
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Keep an open mind, or get financially repressed -Zoltan Pozsar
<< <i>If so, it is only temporary.....Cheers, RickO >>
Like 3 months, 6 months? Or like 3 years, 5 years? Or 10 years+?
in 2007 I heard the dollar index was going into the 50s. Well, 6 years later its in the 80s and maybe headed (a lot) higher. What means temporary?
Knowledge is the enemy of fear
while the purchasing power of all the currencies within the index lose 15-30% of their value. It makes more sense to look at total debt & total fiat than just the index.
Who really cares if the "fastest" horse in a stable of 42 year old nags is the US dollar? It doesn't change the fact all the horses are dead meat.
The US dollar is not bottoming....it's in the process of heading to the bottom where all fiat currencies eventually end up. It's worth 4% of its 1913 value. But with respect to other
world currencies, it probably has maintained most of its relative value on paper. Fold a US dollar note in half every 20 yrs or so. It's current purchasing power is proportional to the
size of that folded note.
True, but thats why every 20 yrs or so income doubles, and most other assets double. In the end we have a system just like we have over the past 100 years, which for the most part has been pretty darn good.
Knowledge is the enemy of fear
<< <i>In the end we have a system just like we have over the past 100 years, which for the most part has been pretty darn good. >>
Sounds like a guarantee for 100 more good years.
Keep an open mind, or get financially repressed -Zoltan Pozsar
On the one hand wages aren't increasing as fast as inflation on the other hand theft and corruption are increasing faster than inflation.
I don't think we will get another 100 years out of this system
<< <i>On the one hand wages aren't increasing as fast as inflation on the other hand theft and corruption are increasing faster than inflation.
I don't think we will get another 100 years out of this system >>
System is running on fumes and borrowed money. Economic chaos is closer than most want to admit.
Keep an open mind, or get financially repressed -Zoltan Pozsar
<< <i>
<< <i>On the one hand wages aren't increasing as fast as inflation on the other hand theft and corruption are increasing faster than inflation.
I don't think we will get another 100 years out of this system >>
System is running on fumes and borrowed money. Economic chaos is closer than most want to admit. >>
If wages cannot keep up with inflation, then inflation cannot continue its course. Prices can only go higher as long as someone can pay them. When no one can pay prices will drop. I've said a hundred times, the best cure for high prices is high prices. The inflation bubble will pop. Is this the chaos of which you speak derryb?
Knowledge is the enemy of fear
<< <i>The inflation bubble will pop. Is this the chaos of which you speak derryb? >>
I speak of the chaos that will arrive when the economic house of cards tumbles. It's being held together with some pretty weak glue. If you recall, Congress began the bailout steamroller in 2008 after being warned that the 'system' was on the verge of collapse. The system has not been repaired, it has been receiving regular transfusions. I have said many times it is a debt problem and you can't fix it with more debt. Until excess debt has been removed from the system, the system remains at great risk. Our downfall will be the error of believing that we should save the banks at all costs (witness current events in Cyprus and anywhere else this same belief exists and note the results of the one worldwide exception, Iceland).
Ma Bell and the resulting Baby Bells makes a great history lesson. Of course Bell South didn't wield the influence and control that the banksters do, and that my friend is the heart of the problem.
Keep an open mind, or get financially repressed -Zoltan Pozsar
Knowledge is the enemy of fear
<< <i>I've always told my clients that "debt kills". This is no different, except that in the case of a bankrupt company it may cease to exist. A bankrupt USA will still exist. Its population will still demand services. And those services will be provided by the population. There will be no chaos. >>
It will continue to exist at the expense of the productive class until the productive class decides its time for chaos. The growing number of non-producers demanding more services will ensure this. I don't see any Romans still demanding services.
Keep an open mind, or get financially repressed -Zoltan Pozsar
and we will just keep on trucking
<< <i>Fold a US dollar note in half every 20 yrs or so. It's current purchasing power is proportional to the size of that folded note.
True, but thats why every 20 yrs or so income doubles, and most other assets double. In the end we have a system just like we have over the past 100 years, which for the most part has been pretty darn good. >>
How does this help people on fixed incomes or people with savings accounts? Inflation is just a hidden regressive tax.
Worry is the interest you pay on a debt you may not owe.
<< <i>20 years from now it will be the same comments, financial collapse is coming or inevitable, Gold going to the moon, etc Dollar is collapsing
and we will just keep on trucking >>
All those things will happen within the next 20 yrs. The system is currently trying to flush out 100-120 years of abuse. There's no one alive today that took part
in the decision making of the last major flush. Therefore, most don't see it coming. And those in control that do see it coming are looting the system without penalties
while they still can.