Let me put it bluntly: The U.S. dollar is nose-diving against foreign currencies. So far, it's down 12% against the euro, 7% to the yen, 8% to the pound, 15% to the Canadian dollar, and 10% to the Swiss frank. And that's just in the past year alone.
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[…] The Fed has no concern about inflation relative to the demise of the economy, and will have to keep interest rates low for critical liquidity demands and to stave off a deep recession. The building inflationary pressures in the face of the Fed's efforts to provide liquidity and keep interest rates low will crush the dollar. […]
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[…] ties with its trading partners, especially the United States. It wasn't a coincidence that when the U.S. greenback declined last year, the Brazilian real dropped in virtual lockstep. A wild card here is how the subprime […]
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[…] How should you play this? Well, the downside risk for Treasury bond prices is currently much greater than the upside potential, but yields in the short (2 year to 5 year) range, the usual protection against price drops are truly lousy at around 3%. In any case, if inflation takes off, it is likely that further weakness in the dollar will result. […]
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[…] $50 a barrel. Suddenly, geopolitical turmoil in Nigeria, Iran and several other hot spots, a free-falling greenback and hedge-fund speculation combined to stoke major supply worries. And the Organization of […]