whidbey

How Bad Is the Dollar's Fall?

When the Bush presidency ends it very much depends on who succeeds him. The dollar pairs respond to the security the dollar offers from political instability as compared to the other currency in the pair, and the capacity of the US to hold its dollar's relative stability. In the longer run, however the dollars value turns on its "store of value" characteristics. As the proposals to to bail out the housing market progress in Congress, the value of the dollar on just a demand/supply basis will fall in all likelihood; Congress will inflate away value. Domestice policy, Congessional spending rectitude in particular, is what demands our dollar future. It is not looking good, but very generally all currencies are inflated. Ellensprophet is wrong, but she is accustomed to that.