Reply #60: Here is another warning - this is the big one [View All]

[whosinpower]

This is for all the marbles now, and the game is in play.

Right now, everyone is throwing their money into treasuries and the American dollar is gaining a tremendous amount of strength against others, in particular the euro. That strength is only backed with a perception of safety - there is no other tangible REAL reason for it, or so I thought. I mean, I am considering the recession, the falling home prices, the trade deficits, falling employment, the horrendous deficit and overall debt the US government has managed to create. I could not figure out WHY the US greenback was gaining in strength - it defied my own common sense. I am canadian, and I can understand if commodity prices fall, then so to does the canadian dollar - but the US dollar had flumoxed me. The US greenback is considered the petrodollar as all oil is traded in US dollars.

Think of it this way - the FED's have said they will loan/bailout the financial institutions for the sum of 700billion dollars. They need to come up with that money, and they need it in US dollars - so everyone is scrambling to provide them with that money backed by treasuries.....but when that cash hits main street, what do you think is going to happen to the VALUE of that dollar? What happens when there is too much of something - the value goes down.

People make fortunes by buying low and selling high. That is how the game works. Your own dollar is being artificially inflated right now. They are stroking its worth far higher than is REAL, given what your nation produces, and given its overall debt load - and getting ready to sell. When that happens, it is game over. When that happens, OPEC will be forced to sell in Euro's or some other, more stable currency, and the US will find itself talking to the likes of Argentina, on how to survive, or will aggressively pursue creating another north american currency, based on the commodities and strength of Canada and Mexico. There have already been talks of this by our leaders.

You can tell me I am wearing tinfoil if you want.