Thursday, October 8, 2009

The fate of the U.S. Dollar

Let's face it, NO ONE LIKES THE DOLLAR. Because of this I LOVE THE DOLLAR. The world is not ready for a new reserve currency yet. Every fiat currency out there has its problems and nothing is quite as stable and as widespread at this point as the U.S. dollar. To put it simple, the world isn't ending quite yet. What is my case for a massive dollar rally? DELEVERAGING. The amount of dollar denominated debt outstanding in the world is astronomical. As people work to repay their debts and "deleverage" there will be a huge demand for dollars to settle these debts and in turn this will drive the bid higher for the ole' buck. Don't get excited though, this drives us into deflation and all of our assets will lose value, including your stocks, house, car, etc......

Monthly U.S. Dollar

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