US dollar rally is imminent.
By Daniel at 10 December, 2009, 10:25 pm
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Most of the world’s debt is denominated in US dollars! We printed 2 trillion and we borrowed 50 to 300 trillion! When the borrowing stops, we won’t have enough dollars to pay principal + interest! This is a deflationary crash!
Dubai cannot find dollars to pay off debt. Home owners cannot pay mortgage. Employers cannot pay salaries! The debt is at excessive levels. There will be more demand for US dollars. We did not borrow in Gold or OIL or Euro. We borrowed in US dollars! When the debt deflates, there won’t be enough dollars to pay off debt. Many will go bankrupt! You cannot earn the money that does not exist! Prepare for the crash!
There will be a short term dollar rally but longer term the dollar is toast thanks to our federal government and their borrow and spend for eternity attitude which will never change. Show your fed up with republican and democrat mismanagement in Washington! They will bankrupt and destroy this country if we don’t stop them!
“It wouldn’t surprise me at all to see a nice rally in the dollar,” says Jim Rogers. The legendary investor tells Tech Ticker he has started to accumulate more greenbacks as of late. Rogers is still negative on the long-term fundamentals for the dollar, noting “the U.S. is the largest debtor nation in the history of the world.”
But “when everybody is on one side of the boat, invariably you should run over to the other side, for awhile,” he tells Aaron in the accompanying video.
At least for the time being, the U.S. remains the world’s reserve currency. And, as St. Louis Fed President Jim Bullard reminded us in our recent interview, the dollar has rallied, not fallen, when things have looked especially worrisome during recent bouts of financial crisis. Rogers says it’s nothing more than short covering, not an endorsement of the dollar or U.S. policy.
In fact, Rogers believes we’re “overdue for a currency crisis” which will likely come “in the next year or two.”
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