Many countries are now in the process of deleveraging their bad debt obligations. They need U.S. dollars to do this. There aren't enough dollars - so the price of the dollar is going up.
The buying strength of the dollar still stinks. It just smells a little sweeter than the septic tank called the euro. The Japanese yen puts them both to shame - but that's bad news for the Japanese since it makes their exports much more expensive.
The U.S. dollar will be going up for the next little while - and then it will come crashing down very, very hard. This will be when countries stop buying our debt - and it's only months away.
George W. Bush lifted the offshore drilling ban on July 14.
That’s good for now, but what is the dollar likely to do between now and next summer? ...Iran, Venezuela or Cuba?
It is the one thing that’s holding Gold stable in the 7’s. If the dollar tanks again Gold will sky-rocket. Just buying Eagles right now is hard. This is the strangest time I’ve ever seen.
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Late night ping!
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