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5 Reasons Why the U.S. Dollar Will Weaken Further

Even w/ a projected upturn in the market for the second half of the year, the smart play will continue to be in the commodities/hard assets (GLD, SLV, USO, UNG/GAZ, DBA/DBC as examples.) SIMPLEd points out some things that are finally starting to get some wider-spread attention about the nature of our economy/money/monetary policy.

The attempt to bolster our economy by lower Fed rates is a losing proposition, in the end. The vast sums of investment by foreign investment sources is doomed to dry up, and be withrawn, as higher inflation (possibly hyper-inflation) and lower yields drive those investors into other markets/currencies that continue to value a strong currency in the long run, versus short term stimulus programs that artificially prop up markets.

Will be interesting to see if the summer run-up is followed by a precipitous selloff by the institutional investors.

Subprime is affecting many other foreign economies. But, their ability to offset the debilitating effects is greater than ours due to the overall lower impact, and truly organic growth. As the emerging market's standard of living improves, the developed world's will decline. Economic collapse is low probability, but a continual degrading of the US economy is high probability. Look forward to protracted dead cat bounces for the next few years., and a very hard slide (6000-8000 Dow) eventually.