Asbytec

If the U.S. Is in a Financial Crisis, Why Is the Dollar Rallying?

Paul, you make good points. Sure, it will be a while before the Fed can raise interest rates. Very true. When is anyone's guess (end of 2009?) I pray for stimulus packages that do more than bail out the current failed system. Help Joe the Plumbers stay in their homes and keep their jobs or find new ones.

You may have me on the accelerated demand and price thing. But commodities are priced in dollars, so I'll need another cup of coffee to work it out how this will play with a stronger dollar. According to forex forecasts, the euro is only about half way through it's depreciation cycle.

"No nation has ever devalued its way to prosperity." (Unknown) And such devaluation has been a big problem in recent years. Since 2006, we have seen the dollar lose 30% of it's value, and more since 2002. Something is wrong, someone did something sneaky. I suspect it's those same people who are (not really, but should be) paying the price.

Yes, in my view too, very interesting times.

Carey, okay, sorry if I got your tone wrong. I need to work on mine, I am not laughing much...LOL (Well, sometimes...) I just can't help being a little torqued off over the scope of this thing. Maybe looking up that satirical work will help.

Socialism, naaa...a little bit, though. Nothing unusual. What I am worried about is a return to (not so) free markets. One might argue (in fact 'one' is gonna argue) with the influence of the lobby crowd, insurance companies raking in money and refusing to pay out, and Wall Street sticking it to the little guy, our free markets have been so skewed one can argue their existence.

We've (when I say 'we', I mean 'they') have sold off our homes to make money for the credit markets. This means you and I 'feel' richer because we can spend money we don't have...while 'they' actually are richer. Yes, the money supply has grown immensely in the last decade(?) or two, so where's the inflation? In China. One of our biggest exports is inflation.

So, the economy tilts a bit more. Money rolls into wall street's coffers and regulators turn a blind eye. No one complains when one has a Hummer in the driveway and prices are relatively stable. I am arguing we will not go back to that system.

I also realize I am a bit too optimistic. There is just too much power and money seeing to it we do get back to business as usual...easy credit for all Americans. But, it'll be a long time before anyone buys into our (or any) housing market, again, even with transparency.

Well, sorry for the disjointed thoughts, just a bit worn out this morning.