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  • Five consequences of a stronger dollar

    From marketwatch.com

    The euro is collapsing because the continent is plunging into a depression. The pound went into free fall because the Scots were about to break away from the United Kingdom. The yen is heading down because Abenomics is hitting the rocks, and the country is heading into its third lost decade in a row. There are any number of explanations you can give for why most of the main currencies have been falling against the dollar. But, in fact, there is another simpler explanation. It is not that other currencies are weaker, it is the dollar that is getting stronger. The American currency DXY, -0.02% has now been rising for ... (full story)

....errmm, the Yen heading down is exactly what Abenomics was trying to achieve.

..and here is a sobering thought, by now China probably holds the equivalent of one quarter of the American government's debt.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
Strong dollar lol. Is just an illusion.

Sure its stronger vs other fiat garbage who are active trying to prop it up. Compare the Federal reserve note to anything of need like Food, Housing and Clothing then the Note doesnt look strong at all. Looks rather weak, even compared to few years ago.

Sure the cartel has managed to surpress the price of real money aka Gold & Silver however such manipulation cant last.
Quoting Bankerssuck
Strong dollar lol. Is just an illusion.

Compare the Federal reserve note to anything of need like Food, Housing and Clothing then the Note doesnt look strong at all. Looks rather weak, even compared to few years ago.
Which only proves that a strong dollar is not an illusion, higher yields and a stronger dollar go hand in hand for obvious reasons.
Quoting barkie
Which only proves that a strong dollar is not an illusion, higher yields and a stronger dollar go hand in hand for obvious reasons.
Its weak against anything of real value, comparing it to fiat trash then claiming strength is an illusion at best.
Quoting Bankerssuck
Its weak against anything of real value, comparing it to fiat trash then claiming strength is an illusion at best.
I'm not sure I understand your logic. So, people bought gold at 1900 USD, but when it started sinking, they decided to sell it back for a weaker dollar, when in fact the gold was more valuable? HUH? That makes no sense. Why not just hold the stronger gold? Oh yeah, because it was losing value faster than a YUGO at a yard sale. Now I get it.
Quoting Forextrapain
I'm not sure I understand your logic. So, people bought gold at 1900 USD, but when it started sinking, they decided to sell it back for a weaker dollar, when in fact the gold was more valuable? HUH? That makes no sense. Why not just hold the stronger gold? Oh yeah, because it was losing value faster than a YUGO at a yard sale. Now I get it.
Gold is up in the long term, check 10 year chart. Rather check 100 year chart ;-) Its just manipulated for now as it moves from bankrupt west to east.

Again check things of need like Food, Housing & clothing all are up vs fiat trash.
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Strong dollar ? Not for a long time. As soon as is possible the illusion will be broken.
The US economy is addicted to printing money. Hike rate ? Good joke !
''US has mde a better attempt to escape from global crisis than any of it's rivals.''
I don't believe this s**t or if it's true than what's the reason behind weaker jobs market and Fed's unstoppable QE?
Quoting Jj1459
''US has mde a better attempt to escape from global crisis than any of it's rivals.''
I don't believe this s**t or if it's true than what's the reason behind weaker jobs market and Fed's unstoppable QE?
Your best answer is to research the Great Depression on Wikipedia.
If nothing else you will learn to be out of the market in late October.....
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
Quoting Bankerssuck
Gold is up in the long term, check 10 year chart. Rather check 100 year chart ;-) Its just manipulated for now as it moves from bankrupt west to east.
I did as you asked. I looked at the charts, and found that it took gold hundreds of years to reach 1900, but a very short time to dive back under 1300. It anyone thought that gold would go back over 1900 in this, or the next lifetime, there would not be such a rush to cash it in for USD. So, it may be wise to think that gold is the real fiat. Case and point. Walk into any grocery store, and try to pay for your food with a piece of gold. When they stop looking at you with that dumb grin on their face, don't make a bigger scene, just pull out your wallet and pay cash. Gold has no real value. Take gold to any pawn shop or the best gold dealer in the world, and you will never get full value for it. Take a dollar into any bank, and they will give you four quarters. There is just no way to exchange gold for any services or goods, meaning, it's worthless except to a gold bug who just wants to collect it. Now, I will agree that a dollar doesn't seem to buy what it used to, but I also make a lot more of them, for the same job, as I did in the 80's, so everything is relevant. However, gold couldn't be used to purchase anything in the 80's, and that still remains true today. Just my opinion, but gold is no different than collecting baseball cards. The value is only what someone will pay, no matter what some book, or grading service says it's worth. And now that the buzz is over, and the fad of owning it is gone, it will be even harder to trade. More gold is found everyday is some part of the world. Mining never stops. The supply is a lot higher than the demand. It makes pretty trinkets, but it will never pay the bills.
Quoting Forextrapain
I did as you asked. I looked at the charts, and found that it took gold hundreds of years to reach 1900, but a very short time to dive back under 1300. It anyone thought that gold would go back over 1900 in this, or the next lifetime, there would not be such a rush to cash it in for USD. So, it may be wise to think that gold is the real fiat. Case and point. Walk into any grocery store, and try to pay for your food with a piece of gold. When they stop looking at you with that dumb grin on their face, don't make a bigger scene, just pull out your...
Ok Mr. Yellen pls short more we like the low prices.

Edit: US isnt the entire world infact its hardly 10%, Check Asia where more than half the worlds population exists. Gold is money there.
Quoting Bankerssuck
...Edit: US isnt the entire world, Check Asia where more than half the worlds population exists. Gold is money there.
....also in India.

In fact if you want to buy arms then gold has been used a number of times to pay for them. In the main though, it is just another PM.
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
86.06/91.35 is target for DXY...until then doesn't matter about data...
The Market pays you to be disciplined
Quoting Bankerssuck
Ok Mr. Yellen pls short more we like the low prices.

Edit: US isnt the entire world infact its hardly 10%, Check Asia where more than half the worlds population exists. Gold is money there.
That's great, but since I don't live in Asia, and my wife would shoot me if I bought anymore guns, then your point is mute. Plus, why would anyone complain about our money going overseas, if one would trade the USD for gold, then take it overseas to trade. That seems counterproductive to the argument, since most of the people who invest in gold state they do it to counter the weak dollar, because all the jobs and money is going overseas making that the reason it is weak in the first place.
Quoting Exodus
Your best answer is to research the Great Depression on Wikipedia.
If nothing else you will learn to be out of the market in late October.....
Than i would love to experience that thing too ;-)
Quoting Exodus
Your best answer is to research the Great Depression on Wikipedia.
If nothing else you will learn to be out of the market in late October.....
Cash out and take the little wife to Munich. She'll love that more than the money.
The gold price surge was largely due to India. The division of Pakistan and mass migration of Muslims from India resulted in millions of families traversing the country with gold as their only form of currency. Indians and Pakistani have been hording gold ever since. When the gold bubble popped, they had to rethink it's value. It's interesting how global history is linked to commodity prices.
Quoting Bankerssuck
Strong dollar lol. Is just an illusion.

Sure its stronger vs other fiat garbage who are active trying to prop it up. Compare the Federal reserve note to anything of need like Food, Housing and Clothing then the Note doesnt look strong at all. Looks rather weak, even compared to few years ago.

Sure the cartel has managed to surpress the price of real money aka Gold & Silver however such manipulation cant last.
How u can supress the price when u still can buy the gold u want, the silve and everything you want,

in Venezuela our currency lose about 10% per month since 2 years ago, a trash class currency.

dollar is a blessing.
Quoting Bankerssuck
Strong dollar lol. Is just an illusion.

Sure its stronger vs other fiat garbage who are active trying to prop it up. Compare the Federal reserve note to anything of need like Food, Housing and Clothing then the Note doesnt look strong at all. Looks rather weak, even compared to few years ago.

Sure the cartel has managed to surpress the price of real money aka Gold & Silver however such manipulation cant last.
All this talk begs the question "Why are you here?" This is a currency trading site and you have nothing good to say about currencies. Telling us gold is superior isn't going to cut it, because people need a unit of exchange. Gold doesn't do this very well because.. well, you look it up.
Gone to a better place
when price action is already in the chart everyone will predict it correctly. LOL.
Quoting acidguy
How u can supress the price when u still can buy the gold u want, the silve and everything you want,

in Venezuela our currency lose about 10% per month since 2 years ago, a trash class currency.

dollar is a blessing.
....you didn't buy gold?
Carbon-Dioxide: the gas of life! https://youtu.be/ttJBdr6eBuo
@Forextrapain
In a typical smartphone is about 300 milligrams of silver and about 30 milligrams of gold.
American Chemical Society

only in smartphones...
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  • Posted: Sep 24, 2014 4:54am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 22  /  Views: 6,305