If you buy UUP now, you could be the last foolish bagholder to hold the bag.
The U.S. budget deficit is gigantic. At $1.3 trillion dollars annually, every month you will need on average more than $100 billion dollars worth of NEW silly investors to buy U.S. dollar debts to keep this Ponzi scheme going. How many more fools still exists?
One should take this opportunity to sell dollar or dollar debts to fools. It is just a matter of time for the dollar to resume its crashing course. We cannot have a strong dollar for long when the U.S. deficit is still so high.
In comparison, the Greece annual deficit is only $25 billion dollars. That is just one-week worth of the U.S. deficit.
The real big problem is the U.S., not the Greece or Europe. Greece problem is very tiny in comparison.
The entire Euro debts are lower than the U.S. debts. UUP will crash back down soon.
Subdued lending makes for subdued spending makes for inventory builds and production declines makes for no jobs makes for subdued lending, subdued spending...Negative feedback loop cannot be stopped until it is finished.
LOL. The inflation is for real.
Despite the house prices have come down some in the past few years, it is still way higher than a decade ago. It only took out the housing bubble a little bit, but not really negated the inflation at all. And the rent did not come down at all and loan became very hard to get, so the cost of living on housing did not really change for most of people.
Just use your own brain to think. Do not be fooled by anyone. There has to be inflation (if not hyper inflation) with trillions of new dollar printing every year. You cannot have a lot more dollars every year and still hope that the dollar is still worth the same.
30 years ago, you only need to use 1 dollar bill to buy 1 gallon of gasoline. 5 years ago, you need to use 2 dollar bills to buy 1 gallon of gasoline. Now you have to use 3 to 4 dollar bills to buy 1 gallon of gasoline. The more they print, the more bills you will need to pay for the same thing.
Use your own brain and experience to think: Is that inflation or deflation?
If you are not super dumb, the answer should be very clear.
Real estate prices are back to 2002 levels and stocks are well below levels of 2000 and 2008. These prior highs were achieved with leverage which is the reason no further advance is possible. Baby boomers will be net sellers of assets into a no bid market and both stocks and real estate are going to crash. Aggregate demand continues to decline so businesses have no reason to create jobs which translates to no growth, lower revenues, lower tax receipts, more defaults, lower real estate prices, etc. Negative feedback loop has set in, and it cannot be stopped until all mal-investment is liquidated. Welcome to the world of Atlas Shrugged.
The dollar has been crushed for a decade, and it will continue to be crushed until the US can balance the budget or go bankrupt when no one wants to buy its debts anymore. In fact US is already bankrupt because it has to rely on Fed to print money to buy its debts. Without Fed printing money, the US would have been bankrupt for two years. It is silly to buy US debts or dollar.
Japan is different from the US. Japan is a saver country. US is a debtor country. The Japanese government is in debts, but its people save like crazy. And Japanese have better patriotism than the US. The savers in Japan will continue to buy and support their government debts, but the US has no saver to support its debts and the Republicans do not even care if the US defaults on debts. Some Republicans even think it is a good thing to default. US debts are one of the most dangerous investments in the world.
This debt does NOT create a demand on dollars. That is really ridiculous. The more debt the more dollars in demand is even more ridiculous statement. You should say the more debts the more dollars have to be printed to support the debts. Otherwise, the US will be bankrupt. That is more accurate.
Hyperinflation will come. We finally agree on one thing. But not after several years of massive deflation because there is no deflation. We have been in inflation and will still be in inflation for years as long as we are printing trillions of dollars.
If you believe in the government deflation story, you are too easy to be fooled. If you know how the government calculates inflation numbers, you should know it is a manipulation to lower the inflation numbers so they do not have to keep raising social security payouts.
Looks like beardisater will get the last foolish bagholder title. He is so late to the dollar party. He was not even aware that Europe just got some great news.
Dollar is clearly topping out again. It is crowded long in dollar while Euro is crowded short, so I expect a lot of Euro short cover and dollar selling going forward.
Of course, the largest dollar seller is the Fed.
It is sad that you had to resort to lies and cherry picking timeframe to pump dollar. Even for the worst timeframe of gold performance in the past 3 months, gold was only down 4%, not 6%: http://finance.yahoo.com/q/pm?s=GLD+Performance
And dollar was only up 4.7% for the same three month period, not 6%: http://finance.yahoo.com/q/pm?s=UUP+Performance
And if you look beyond the only negative period for gold, gold way outperformed dollar with 3-year average 28.5% gain annually while the dollar was down 5.7% annually.
There is no chance for dollar to outperform gold in the long run when the US is printing $1.3 trillion dollars annually.
Gold will do one step back two step forward while dollar will do one step forward two step back just like what they have been doing for the past three years. Nothing changed. The dollar is still flying out of the printing machine every day.
Like it or not gold WILL replace dollar as the world reserve currency eventually. It is silly to own dollar or dollar debt. The US is the biggest debt nation in the world.
Its a pipe dream to think gold will replace the dollar. If it does then the projects will be full of gold and food stamps making the investment you own worthless. Its either printing or digging up gold for the welfare recipients. All you gold lovers need to go to another pro gold stock forum. Why are you even over here. You lost 6% of your investment while longs on the dollar gained 6% in the last three months. When its time to buy gold I will. All you that hold onto your gold hoping Armageddon happens are horrible investors. Its like holding onto a overpriced house while the housing bubble burst.
•A large selling of U.S. dollar assets by China will be noticed by global markets and could cause a panic selling of USD across the world. The resulting crash of the dollar would drive interest rates higher and hurt the U.S. economy. The end result? China would be hit hard because of falling OECD demand for Chinese goods.
•Given that the renminbi is pegged to the dollar, a fall in the dollar would see a the renminbi depreciate as well. In that event China will feel even more political pressure than it already does from trading partners that have found their products less competitive against cheaper Chinese goods.
•If China were to attempt a sudden sell-off, the renminbi would be expected to appreciate against the dollar in the medium-term. Expectations for currency appreciation will drive hot money, like false foreign direct investment, into the country causing market instability.
Chinese currency is not really pegged to the dollar anymore. It is changing every day now, but it is totally controlled by Chinese. One US dollar could exchange for $6.6 Chinese Yuan a year ago, but now one US dollar can only exchange for $6.35 Chinese Yuan. What is bad for the US is only bad for the US.