Thread: The Dollar is Strong and Not in Danger of Collapsing

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  1. #1

    Default The Dollar is Strong and Not in Danger of Collapsing

    The dollar has rallied sharply in the past month, continuing a bullish trend since late 2011. It has risen significantly against the pound, the euro, the yen, the Aussie dollar and the Mexican peso lately.

    The dollar’s recent rise is reflected in the following chart of the PowerShares DB US Dollar Bullish ETF (UUP).

  2. #2


    Europe and Japan are struggling again. After being hit with a $14 billion fine by the U.S. Treasury, Deutsche Bank has come under pressure and its stock has fallen by half. Japan continues to show weakness and is keeping interest rates low. Meanwhile, the Federal Reserve in the United States is threatening to raise interest rates, even as the United Kingdom, Europe and Japan are reducing theirs. Advantage, United States.
  3. #3


    The first casualty as a result of King Dollar was the precious metals market. Last week, gold fell sharply to $1,360 an ounce, while silver dropped to $17 an ounce. My Forecasts & Strategies subscribers took profits on their mining stocks. As I like to say, “Never let a profit turn into a loss.”

    Is oil next? Actually, the price of oil rose last week to $50 a barrel. Every commodity market responds to its own supply and demand situation, but if the dollar continues to show strength, oil prices could drop, too.
  4. #4


    Gross output (GO) and gross domestic product (GDP) both are showing a weak economy and a mild business recession. But will a weak economy derail the bull market on Wall Street? Not necessarily. The stock market is always forward-looking, and I see that the Fed is now unleashing its one final tool to stimulate the economy: printing more money. The broad-based money supply (M2) is now growing at 10% a year, the fastest pace in five years. The Fed is fighting bad fiscal policy of higher tax rates and “strangulation” as a result of Obamacare, Dodd-Frank and Sarbanes-Oxley. It now appears that presidential nominee Hillary Clinton will win in November and, unfortunately, her economic policy positions show that she’s no Bill Clinton.
  5. #5


    Earlier this month, President Obama was invited to write a guest column for The Economist on ?The Way Ahead: Unfinished Business in Economic Policy.?

    In his essay, the president said he is happy with his economic policies, especially leading America out of the Great Recession. He claims, ?Wages have risen faster in real terms during this business cycle than in any since the 1970s.? I?ve yet to find an economist who agrees with that statement.

    Even if it is true, I?m not sure Obama had much to do with it. The fact is that the Federal Reserve did more to get us out of the slump than any fiscal policy to come out of Washington in the last eight years. Obama raised taxes and increased stifling regulations (Obamacare and Dodd-Frank) during his years in office. ?We don?t begrudge success,? he wrote, but his policies have taxed and strangled successful entrepreneurs.

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