Anyone Else At The Panic Point On The Dollar?
 

If my parents are old enough to take money out of thier retirement annuity, I'm really thinking of asking them to put it all into commodities and foriegn CDs.

I'm flat out scared at this point. Our CPI statistic might as well have been scribbled in cryon by a child and the person in charge of our central bank is f-ucking insane.

Re: Anyone Else At The Panic Point On The Dollar?
 

I totally agree with you. I am super bear on the dollar and would not hold assets that are denominated in the currency. And yeah, Bernanke is insane. I don't know what he is thinking! Anyway, I don't see a reason to invest in the US and I don't know why people do it at this point.

Re: Anyone Else At The Panic Point On The Dollar?
 

The smart money trade is actually on a stronger dollar going forward.

Re: Anyone Else At The Panic Point On The Dollar?
 

Agreed, we have finally reached the point where everyone and their mother is talking about the weak dollar. It's declined significantly over the last few years, my bet is the easy money has been made.

Re: Anyone Else At The Panic Point On The Dollar?
 

i read a lot on kitco forum about how the dollar is doomed, the financial sector doom has still a long way to go, and is only the first of many sectors that will plummet.

i know i am a newbie, but i dont think just becuase everyone knows about the weakness of the dollar means that it'll get stronger. everyone knew about the financial sector crashing months ago as it was coming on the news, but it's still heading downwards. sure the easy money is gone, but it doesnt mean that it wont continue and wont be profitable imo.

ill try and copy and paste some articles and other explanations as to why people are thinking that the dollar if going to go busto.

Re: Anyone Else At The Panic Point On The Dollar?
 

any thoughts on the British pound? most of my money is in England.

Re: Anyone Else At The Panic Point On The Dollar?
 

If everyone already knows that the dollar is going to get weaker, the price would already be at that weaker level. For every person who sells a dollar, there has to be someone on the other end who is buying. If we all know its going weaker who is going to be buying? In 2005 for example, the US was still the same debt machine that it is today, but the dollar had a pretty good bounce. If that happens in 2008, and you buy today you'll be screwed.

The point is, no one really knows. Its good to stay diversified.

Re: Anyone Else At The Panic Point On The Dollar?
 

[ QUOTE ]
If everyone already knows that the dollar is going to get weaker, the price would already be at that weaker level. For every person who sells a dollar, there has to be someone on the other end who is buying. If we all know its going weaker who is going to be buying? In 2005 for example, the US was still the same debt machine that it is today, but the dollar had a pretty good bounce. If that happens in 2008, and you buy today you'll be screwed.

The point is, no one really knows. Its good to stay diversified.

[/ QUOTE ]

Of course this is true however, there are a couple of reasons why I would not hold dollars. First of all, I think the Fed is doing a horrible job and I am pretty sure that the numbers they are providing are not true. In other words I think the situation is worse than they say. Second, the reason the dollar has stayed strong is because of the foreign investments. However, I think partially due to the weakening dollar and partially due to the turmoil in the financial markets foreign investors will invest in what they perceive to be less volatile markets such as the eurozone. All in all I think this will lead to further depreciation in the dollar. At least that's the way I see it.

Re: Anyone Else At The Panic Point On The Dollar?
 

By the way, I a pessimist by nature and am almost always bearish to the financial markets. Just so you know...

Re: Anyone Else At The Panic Point On The Dollar?
 

[ QUOTE ]
[ QUOTE ]
If everyone already knows that the dollar is going to get weaker, the price would already be at that weaker level. For every person who sells a dollar, there has to be someone on the other end who is buying. If we all know its going weaker who is going to be buying? In 2005 for example, the US was still the same debt machine that it is today, but the dollar had a pretty good bounce. If that happens in 2008, and you buy today you'll be screwed.

The point is, no one really knows. Its good to stay diversified.

[/ QUOTE ]

Of course this is true however, there are a couple of reasons why I would not hold dollars. First of all, I think the Fed is doing a horrible job and I am pretty sure that the numbers they are providing are not true. In other words I think the situation is worse than they say. Second, the reason the dollar has stayed strong is because of the foreign investments. However, I think partially due to the weakening dollar and partially due to the turmoil in the financial markets foreign investors will invest in what they perceive to be less volatile markets such as the eurozone. All in all I think this will lead to further depreciation in the dollar. At least that's the way I see it.

[/ QUOTE ]

Right, but my point is, what do the buyers of the dollars you're selling see? Don't you think they know all this information too. What if the dollar has already been oversold by everyone who was thinking what you are thinking last year? See my point?