The dollar was as high as 89.624 in March 2009, and is down 14 points in the 8 months since then.
By Daniel at 11 November, 2009, 5:09 pm
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
The big issue is INTEREST RATES and if the Federal Reserve raised rates (or the market did in bonds) then we would see the dollar soar again in value. Australia right now is the first country to really engage in breaking the trend with ultra low rates and the US will have to respond by raising rates if other countries follow Australia or else the US will see the dollar continue to fall. The onus is on Bonkers Ben to do the right thing.
The only silver lining is that if the dollar gets down towards 70, the Federal Reserve will be forced to both intervene in the currency markets and to raise interest rates to defend the dollar. Traders betting against the dollar are playing a game of chicken with the Fed and are likely to end up getting burned badly if they push down too hard against the dollar.
http://quotes.ino.com/chart/?s=NYBOT_DX&v=s
I don’t see any silver lining, or that the FED will be “forced” to do anything. I’ve lost all faith in their support of the dollar. They are “all in”, and as citizens of this country we are all forced to get aboard this suicidal ride. This is a race to the bottom.
American Patriot
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
No comments yet.