The Dollar Also Rallies: The Case for More Upside

Yes, stronger dollar is good for our economy. But what I don't understand is if a barrel of oil is the same price it was a year ago, why is it then we are paying a dollar more per gallon?

Stop printing money (dollars) an pay your debts Oh ..and stop spending like drunken sailors. The only way people will trust the US economy/government and $$. Just a thought!!!

Flip, flop, flip, flop. Leaders of the new idiocracy.

..http://news.yahoo.com/s/afp/20080822/wl_canada_afp/canadauseucrimemoney_080822212441......Underworld people won't take dollars anymore.

To me, it looks like a case of fleas jumping to the highest pebble in the bed of a river in which a huge flood is about to break loose. "Yeh, let's buy more dollars 'cause they are 1/4 of an inch higher than the yen/euro/bhat/whatever." But the absolute value of the USD is drowning in a torrent of ink and paper as the USA tries to prop up the world economic system (of corruption) on the backs of its taxpayers, whose homes are plunging in value and jobs are disappearing. Is there a problem?

america's consuming to lift economy is over. housing is all that we had. it's dead. with new president in office look to a investment led economic expansion into new energies and techologies. it's inevitable. think of america as a 20 year old ruby's restaurante. all the grease and crime in the traps and in the corners. it needs to be burned to the ground then rebuilt.

LOL GOLD MEDAL for the Coffee grab.

I am grappling unsuccessfully with the notion that a government takeover of fannie and freddie would add 5 Trillion Dollars to the national debt. The idea that 100% of the mortgage assets that back their debt instruments will be devalued to zero just doesn't make sense to me. Mr. Trask, could you provide substantiation for this claim, or at least outline a scenario that defends the likelihood of such an occurrence?

FREEBIRD!!!

I agree that it's unlikely for 100% of mortgage assets to go to zero, but by nationalizing Fannie, Freddie, the US Govt would take on the obligation to pay off their $5T in debt in the event of default. Moody's has said taking on FNM/FRE obligations won't endanger the U.S.A.'s Aaa credit rating but Moody's (and S&P) also rated a lot of subprime MBS as Aaa before coming to their senses.... - Aaron Task

I don't see how the dollar can continue to strengthen with a large and increasing foreign debt, increasing deficits, a stalled or shrinking economy, and a central bank scared to death of a recession.

hey

Both the government and the population just has to cut down. Cut down spending. you can't have you $600 pocketbook if you can't afford it.