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U.S. Dollar: Nice Move, But a Long Way to Go

USD is not likely to return to much higher rate. We're not even close to the end of this whole recession story yet. Alt-A, Option-Arm, Interest-Rate crisis may be yet to come.

I don't think the current strength of USD is anything but a short term bounce. The world needs USD to settle debts that's why it's been going up, but there's very little real savings demand for USD.

Debt settlement will subside, the Savings undercurrent is the real trend for the US currency, and that's currently not looking good at all. The world's trust has been betrayed by Wall Street, and is not likely to return soon. USA is no longer a trusty world banker.

Who/What replaces US as the world's banking system is still in debate, but no matter who/what it is, it doesn't bode well for the long term strength of the Dollar.