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View Full Version : USDX up, why?



aequitas
8th December 2009, 13:43
It seems the USDX has been trending up for about a week. It looks like a "flight to safety" is taking place. Possibly profit taking going on in gold and equites and the profits are being held as dollars.

If this is whats happening, gold and silver could go even lower, perhaps some good buying opportunities ahead.

Irishfan1
8th December 2009, 13:45
Seems like all of the dollar rallies the last few months have lasted a week. I think this one is about shot. I am surprised its still going on after Obamas speech about spending more money that we dont have.

aequitas
8th December 2009, 14:12
Seems like all of the dollar rallies the last few months have lasted a week.

Yeah they do seem to break down quickly.

mark2112gum
8th December 2009, 14:13
I was just wondering about that too, like WTF, being it debt over twelve TRILLION dollar seems like a good thing????

main1event
8th December 2009, 14:18
The USDX is traded against other fiat currencies that are no better. The dollar sucks but every country is printing money like crazy.

ryshay
8th December 2009, 14:25
USDX up, why?

Well, Obama announced that the US would "spend" its way out of the recession with a new stimulus plan today. That should have been dollar-negative news.

But guess what else happened today?

The US sold $29B in 0% 1-month paper
http://www.zerohedge.com/article/29-billion-1-month-bill-prices-0000

And the US sold $40B in 1.22% 3-year paper
http://www.zerohedge.com/article/40-billion-3-year-auction-closes-12234-high-yield-5040-allotted-high

You see, the dollar had to look its best for the Treasury auctions today. So the Plunge Protection Team dressed the dollar in a rent-a-tux for the day.

Like Chris Powell said, "There are no markets anymore, just interventions".

And, Greece got downgraded by Fitch--that makes people nervous that sovereigns cannot pay their debt, which would be deflationary.
But this boost in the dollar cannot be explained by Greece alone.

aequitas
8th December 2009, 15:11
Like Chris Powell said, "There are no markets anymore, just interventions".

Good point, do fundamentals have any effect in the short term with so much intervention by government and banking institutions.

main1event
8th December 2009, 16:26
How true. So how come you are constantly telling us the dollar will collapse? In the very long run yes, of course, it is quite likely to, but everyone else has major economic and/or social/cultural/political/systemic problems so the dollar may very well surprise in the coming months and years.

There are different types of collapses. The dollar could simply collapse against real money (gold and silver) without falling against other currencies. Imagine the dollar trading where it is but gold going parabolic. That is a collapse against the biggest of all currencies. Its just not part of the USDX

Notice how people make fun of gold and silver, that inflation adjusted since 1980 we have not reached the peak for gold. However, the Dow to Gold ratio has now shrunk to 9. The Dow is collapsing in terms of real money. Real Estate may not fall much further in terms of dollars but it is falling in terms of gold.

digger
8th December 2009, 16:26
How true. So how come you are constantly telling us the dollar will collapse? In the very long run yes, of course, it is quite likely to, but everyone else has major economic and/or social/cultural/political/systemic problems so the dollar may very well surprise in the coming months and years.

Duneyman returns again:mad:

akak
8th December 2009, 18:10
The truth is that the rest of the world has major problems too !!!


The truth is that SOMEBODY cannot figure out when they are not welcome!

Begone, Duneyman! I banish you to the desert, where you may rule over the sand and the scorpions!
So let it be written, so let it be done!

silversurfer1
8th December 2009, 19:15
Obama and Bernanke are spewing out alot of bullshit about "jobs" and "stimulating the economy". Bernanke is manipulating alot behind the scenes trying to get re-appointed. And the market buys into all of it. It's all smoke-mirrors. Can't last too long.

akak
8th December 2009, 19:22
Obama and Bernanke are spewing out alot of bullshit about "jobs" and "stimulating the economy". Bernanke is manipulating alot behind the scenes trying to get re-appointed. And the market buys into all of it. It's all smoke-mirrors. Can't last too long.

You are, sadly, too correct.

It is amazing how all the sheep and lemmings are so easily taken in by this idiotic propaganda over and over and over. It is almost comical to watch.

bluepelican
8th December 2009, 19:59
And then there's this:

http://www.lewrockwell.com/north/north790.html