Despite all of the rhetoric we hear from mainstream economists and our government masters, the unprecedented printing of U.S. Dollars is taking its toll:
The U.S. dollar’s day of reckoning may be inching closer as its status as a safe-haven currency fades with every uptick in stocks and commodities and its potential risks – debt and inflation – are brought under a harsher spotlight.
Ashraf Laidi, chief market strategist at CMC Markets, said Wednesday a “serious case of dollar damage” was underway.
“We long warned about the day of reckoning for the dollar emerging at the next economic recovery,” Mr. Laidi said in a note.
Not that the Dollar was any great thing before Greenspan and Bernanke gave us their tag-team effort to utterly destroy it, the markets are speaking about our doomed currency and speaking loudly. The response from Washington? “Move along, people, there’s nothing to see here….”
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makes you wonder just how much of our market “rally” is real and how much is a nominal increase predicated on the expectation of future price pressure.
I knew it. I was waiting for someone to point out that these equity, petrol and housing price rallies were bad things. They have nothing to do with people becoming stimulated by Obama and previously Bush and have everything to do with it taking more money to buy the same stuff.
Keep in mind that the best performing stock market in the world is in Zimbabwae, like 12million percent. Of course the money supply has increased several trillion percent.
It is almost comical to read the comments by John Curran in this article. He continues to hold his faith in the U.S. dollar even though he is constantly bombarded by news of all of the Fed’s money printing, quantitative easing, and mounting Government debt levels. Curran states:
“The U.S. dollar is continuing to slide as investor appetite is gaining momentum,” Mr. Curran said. “People are getting comfortable about taking on a little more risk.”
Is it risk investors are seeking or are they running away from risk because they know what is coming and moving into something they feel is safer? Personally, I think it is the latter.
This is only the beginning especially if the below linked national debt clock which includes all unfunded liabilities proves to be accurate. Will Curran change his tune before its to late? I doubt it.
http://www.usdebtclock.org/
@Matt
“makes you wonder just how much of our market ‘rally’ is real”
Actually, the answer is none of it. It’s all a lie. The current rally was propped up by the financial sector, but it’s all due to shady accounting.
According to
http://seekingalpha.com/article/134997-how-much-of-the-banks-earnings-are-real it will take 20 years of honest banking practices to recover from this downturn.
IMHO we still haven’t hit bottom yet. We’ve still got the rest of the financial collapse, the credit card collapse, and the commercial real estate bubble to deal with. Oh joy!
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