David Roskoph

Preparing for the Dollar's Next Down Cycle

Only this time capitalism itself was on the precipice and that was a game changer. Dollars are multiplying fast but America remains the greatest and most evolved franchise on the globe. As such, we define capitalism; now upgrading to the 21st century version. The strength of the dollar is a testament that the world "gets it"; without us they flounder back to their previous isms. Gold will now join it commodity brethren, losing its role as a central bank instrument; replaced by what? The dollar.

Key Reasons to Be a Dollar Bull

You are right for some of the right reasons. The bailout/reflation parade is only getting started, it will not only not stall, it will reach well past a trillion. Huge deficit spending is the only thing that can stop deflation from felling the republic. That is baked into the recipe and understood by the world. That is why the dollar is rising.

Logically all that new debt would be inflationary, except we are teetering on the precipice and the fall would be felt in every corner of the civilized world. Warts and all, we remain the best model for a standard of living in the world - we are the leader.

The value of our franchise alone will keep the dollar strong as the rest of the world copes with the rising tide of fiat coming into the system. We have stumbled but will nto be crushed by other nations trying to work their way up because without us, they will only go backward.

The Great Dollar Pump of 2008: A Doomed Central Bank Intervention

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The Great Dollar Pump of 2008: A Doomed Central Bank Intervention

Jim this is a logical result when you understand that the supply of US dollars has diminished through the collapse you are referencing. The combined real estate, equity and auto deflation (credit destruction) is around 6 trillion. The countervailing fiat injections, even with this bailout, have yet to reach 2 trillion. Dollars are more scarce, hence more valuable.

Trichet, ECB Missing the Point with Crude

Barnburner,

Damn skippy!

Euro Shakeup: Trichet Hints at Raising Rates

Why shoud the ECB bail us out by dropping rates? Our Central Bank has built a house of fiat credit that is collapsing while the world watches. For the sake of keeping up a good front, we have decayed from within.

Chinese, European Bankers Won’t Dance With The Fed

That the West is awash in fiat currencies is demonstrated by the fact that the only meaningful salvation CAN come from Asia and the Middle East. Everything else is simply domestic fiat once removed. Ben is blustering and everyone is assuming big cuts but he knows that would let the inflation cat out of the bag. He's between letting the deflation occur or risking stagflation.