Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

How Low Can It Go? Don't Like a Weak Dollar? Might as Well Get Used to It
CNBC ^ | 04/21/2011 | Jeff Cox

Posted on 04/21/2011 3:01:49 PM PDT by SeekAndFind

Weakness in the US dollar, which is causing everything to go up—including gas prices, food and stocks—is unlikely to go away soon as a selling frenzy hits the currency market.

The greenback is approaching pre-financial crisis lows and threatening to smash through its all-time low when measured against the world's predominant national currencies.

A combination of factors accounts for the weakness, with the Federal Reserve's easy-money policies, huge national debts and deficits and the consequential possibility of a debt downgrade because of the financial mess in Washington leading the way.

In short, as trader Dennis Gartman noted Thursday, "the rout of the US dollar" is in full effect.

"Panic dollar selling is setting in," Gartman, a hedge fund manager and author of "The Gartman Letter," wrote in his daily commentary. "This may carry farther than any of us dream of or, worse, have nightmares of."

How low can it go?

Rick Bensignor, chief market strategist at Dahlman Rose in New York, said the dollar index, which measures the greenback against a basket of select other global currencies, has scant technical support "that has any meaning" between its present level and the historical low of 70.70.

That's a widely shared view, even as currency pros wonder how the dollar could be falling against the euro considering the near certainty of sovereign debt defaults in smaller European Union nations.

Gartman described the dollar as being in "serious jeopardy" because of its status against the euro, which was defended recently as European Central Bank President Jean-Claude Trichet announced a rate hike in the zone.

No such defense is being offered in the US, where neither Fed Chairman Ben Bernanke nor most of the rest of the central bank's Open Market Committee seems much in the mood to raise rates despite the anemic dollar.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: devaluation; dollar
HOW LOW CAN IT GO?

1 posted on 04/21/2011 3:01:52 PM PDT by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

Can we agree that it is by design?


2 posted on 04/21/2011 3:03:41 PM PDT by ExTexasRedhead
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

QE3 and QE4, will determine how low, interest rate should be about -.001, by that time.


3 posted on 04/21/2011 3:07:19 PM PDT by org.whodat
[ Post Reply | Private Reply | To 1 | View Replies]

To: ExTexasRedhead
Gold closed at $1505 an ounce today, Silver at 46.60. There is serious action in out-of-the-money calls for both, indicating that the market expects both to continue to rise, with periodic brief corrections, until possibly year's end.

The dollar can go lower and metals will go higher if it does. Gold is now at an all-time inflation-adjusted high, silver is not close.

Buy Ag.

4 posted on 04/21/2011 3:09:51 PM PDT by hinckley buzzard
[ Post Reply | Private Reply | To 2 | View Replies]

To: hinckley buzzard

Potter’s buying and so am I. :)


5 posted on 04/21/2011 3:12:38 PM PDT by BenKenobi (Don't expect to build up the weak by pulling down the strong. - Silent Cal)
[ Post Reply | Private Reply | To 4 | View Replies]

To: SeekAndFind
even as currency pros wonder how the dollar could be falling against the euro considering the near certainty of sovereign debt defaults in smaller European Union nations

Not to mention the near certainty that those sovereign debt defaults might get a little help since we would hate to see something bad happen to that Euro, such a pretty currency.

6 posted on 04/21/2011 3:15:53 PM PDT by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: hinckley buzzard
until possibly year's end

Or the end of the commodity bubble whichever comes sooner. The dollar carry trade unwind and revaluation will be dramatic, and gold will not suffer too much, but silver will be hammered.

7 posted on 04/21/2011 3:18:34 PM PDT by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
[ Post Reply | Private Reply | To 4 | View Replies]

To: org.whodat
I can't believe there isn't more said about the devaluation of the dollars.

It's one reason gas is so high. Our dollar is not buying anything from overseas.

This is another example how the stimulus plan has backfired.

I doubt that any of Obama’s “Facebook” fans understand this when they fill up their tanks!

GRRRRRRRRRRRRRRRR

8 posted on 04/21/2011 3:18:36 PM PDT by not2worry (WHAT GOES AROUND COMES AROUND)
[ Post Reply | Private Reply | To 3 | View Replies]

To: SeekAndFind

How low can it go??

If you’re not looking at all of your possessions with an eye towards their barter value, you’re a wild-eyed optimist...

;)


9 posted on 04/21/2011 3:34:48 PM PDT by Uncle Ike (Rope is cheap, and there are lots of trees...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Oh, just wait for the next global “crisis” and the resulting “flight to safety”. Should be any time now......


10 posted on 04/21/2011 3:41:04 PM PDT by jdsteel (I like the way the words "Palin for President" make progressives apoplectic.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: org.whodat

Negative rates coming soon.


11 posted on 04/21/2011 3:41:09 PM PDT by screaminsunshine (Shut up and eat your Beans!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: ExTexasRedhead
Can we agree that it is by design?

This is how Obama is planning to spend like a drunken sailor and then not worry about the bill: Let inflation pay off the debt.

Wno ends up holding the bag?

America's creditors and every responsible American that worked and saved for a nest egg.

We are now in the same position as a thrifty, hard working, German citizen in 1913 who had worked, his entire life, to save his hard earned nest egg, one hundred Mark note at a time.

Ten years later, 1923, his entire life's savings was not worth enough to buy him a single loaf of bread.

In 1923, burning your 1913 money provided more heat than the amount of coal that you could buy with it.


12 posted on 04/21/2011 3:45:02 PM PDT by Polybius
[ Post Reply | Private Reply | To 2 | View Replies]

To: jdsteel

RE: Oh, just wait for the next global “crisis” and the resulting “flight to safety”.

The Most important question people want to know the answer to: Where’s this so-called ‘safety’ that people keep talking about?


13 posted on 04/21/2011 3:46:08 PM PDT by SeekAndFind
[ Post Reply | Private Reply | To 10 | View Replies]

To: Polybius

Spend your money now on the things u will need to survive...ammo, food, gold, fuel.


14 posted on 04/21/2011 4:17:24 PM PDT by ez ("Abashed the devil stood and felt how awful goodness is." - Milton, Paradise Lost)
[ Post Reply | Private Reply | To 12 | View Replies]

To: ExTexasRedhead


15 posted on 04/21/2011 4:25:06 PM PDT by Iron Munro ("Our country's founders cherished liberty, not democracy." -- Ron Paul)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

16 posted on 04/21/2011 5:00:24 PM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Polybius
That won't happen. Obama is going after the “speculators,” so he'll hold the prices down for sure.
17 posted on 04/21/2011 5:01:23 PM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
[ Post Reply | Private Reply | To 12 | View Replies]

To: SeekAndFind


18 posted on 04/21/2011 5:09:54 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

bm


19 posted on 04/21/2011 5:18:04 PM PDT by Para-Ord.45
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

We’re still the tallest midget in the room......no offense to midgets.


20 posted on 04/22/2011 6:40:18 AM PDT by jdsteel (I like the way the words "Palin for President" make progressives apoplectic.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: jdsteel

RE: We’re still the tallest midget in the room......no offense to midgets.


Have you seen the Australian and the Candadian currencies lately ?

Historically on average seventy five and eighty US cents could buy one Aussie and Loonie ( respectively ).

Now, it takes OVER ONE US DOLLAR to buy one Aussie and Canadian.

I haven’t even mentioned the Swiss Franc yet.


21 posted on 04/22/2011 6:45:41 AM PDT by SeekAndFind
[ Post Reply | Private Reply | To 20 | View Replies]

To: SeekAndFind

Don’t get me wrong...I’m with you on the declining dollar and soon-tot-be rising interest rates. It’s just that there seems to be some “crisis” that comes along that sends the dollar lower and treasuries higher just about every month.


22 posted on 04/23/2011 3:53:00 AM PDT by jdsteel (I like the way the words "Palin for President" make progressives apoplectic.)
[ Post Reply | Private Reply | To 21 | View Replies]

To: SeekAndFind

Don’t get me wrong...I’m with you on the declining dollar and soon-tot-be rising interest rates. It’s just that there seems to be some “crisis” that comes along that sends the dollar lower and treasuries higher just about every month.


23 posted on 04/23/2011 3:53:00 AM PDT by jdsteel (I like the way the words "Palin for President" make progressives apoplectic.)
[ Post Reply | Private Reply | To 21 | View Replies]

To: SeekAndFind

Don’t get me wrong...I’m with you on the declining dollar and soon-tot-be rising interest rates. It’s just that there seems to be some “crisis” that comes along that sends the dollar lower and treasuries higher just about every month.


24 posted on 04/23/2011 3:53:09 AM PDT by jdsteel (I like the way the words "Palin for President" make progressives apoplectic.)
[ Post Reply | Private Reply | To 21 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson