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PowerShares DB US Dollar Bullish ETF Message Board

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  • hogsgeteaten12000 hogsgeteaten12000 Jan 5, 2009 8:04 PM Flag

    Why Will the Dollar Rally?

    the liquidity currently sitting in bank balance sheets was not "printed" it was borrowed by selling treasuries. It is there to keep some banks from falling below minimums and others to shore up overall solvency and trust of the system. This easy money is so inexpensive the banks have no motivation to risk loans. They could lend 10 times what they have on the books but they won't until values drop or inflation hits. The Fed will not be able to continue to sell treasuries (see TBT) and will soon have to print NEW money since no resumption of lending or inflation will hap till they do. So, in late 2009 we can expect the printing presses to slowly crank and by mid 2010 they will be in full force keeping up with the new New Deal from the Obamians. Dollar may have a number of rallies left till we monetize. jmho hge

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    • au contraire... the monetization has already begun. when bernanke said he was buying $500 billion FRE/FNM MBS he wasn't planning on issuing debt to do it -- he's running the printing presses in quantitative easing process that he described in his 2002 helicopter speech. that said when he intentionally drives interest rates to 0.0% then he's turning on the printing press... PETAL TO THE METAL

      Bush? Obama? Bernanke doesn't care! The president, as well as congress, is irrelevant to his independent plans and actions... MAN THE TORPEDOS; CRUSH THE NATION

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