Pennysaved wrote:Either we default or print more $$$; don't think either of those will strengthen the dollar.
gojomoso wrote:since the dollars getting stronger the price for commodities is going down, does that mean we could see a goodly sized drop in the price of silver/gold/copper/etc. as the economy gets better?
Jonflyfish wrote:gojomoso wrote:since the dollars getting stronger the price for commodities is going down, does that mean we could see a goodly sized drop in the price of silver/gold/copper/etc. as the economy gets better?
Yes. Some will debate the structural issue of the USD (Which, by design, isn't going to improve over the very long term) and miss the market focus on asset liquidation, interest rate structure changes (huge FX flows) coupled with emerging markets rolling over and doing a belly-flop, killing the current commodity demand cycle. The USD is not dead nor is the primary reserve currency status, at least not for now. Some small diversification away, but USD is the primary global reserve currency of choice, maybe not for small players, but BIS level institutions.
I see a whole school of minnows about to be swallowed whole. Perhaps I'll be 100% wrong, but something tells me otherwise.
The USD recovery cycle will be the Realcent Black Swan event.
Jonflyfish wrote:gojomoso wrote:since the dollars getting stronger the price for commodities is going down, does that mean we could see a goodly sized drop in the price of silver/gold/copper/etc. as the economy gets better?
Yes. Some will debate the structural issue of the USD (Which, by design, isn't going to improve over the very long term) and miss the market focus on asset liquidation, interest rate structure changes (huge FX flows) coupled with emerging markets rolling over and doing a belly-flop, killing the current commodity demand cycle. The USD is not dead nor is the primary reserve currency status, at least not for now. Some small diversification away, but USD is the primary global reserve currency of choice, maybe not for small players, but BIS level institutions.
I see a whole school of minnows about to be swallowed whole. Perhaps I'll be 100% wrong, but something tells me otherwise.
The USD recovery cycle will be the Realcent Black Swan event.
Jonflyfish wrote:Jonflyfish wrote:gojomoso wrote:since the dollars getting stronger the price for commodities is going down, does that mean we could see a goodly sized drop in the price of silver/gold/copper/etc. as the economy gets better?
Yes. Some will debate the structural issue of the USD (Which, by design, isn't going to improve over the very long term) and miss the market focus on asset liquidation, interest rate structure changes (huge FX flows) coupled with emerging markets rolling over and doing a belly-flop, killing the current commodity demand cycle. The USD is not dead nor is the primary reserve currency status, at least not for now. Some small diversification away, but USD is the primary global reserve currency of choice, maybe not for small players, but BIS level institutions.
I see a whole school of minnows about to be swallowed whole. Perhaps I'll be 100% wrong, but something tells me otherwise.
The USD recovery cycle will be the Realcent Black Swan event.
Haven't been here in a while due to work and the newborn baby etc. Came across this post and gave some pause...
Black swans are swimming?
Cheers
68Camaro wrote:Not sure what Jon meant, interested to hear the clarification.
But as far as USD, I have little doubt that the Euro will crash before the USD does, which will drive the USD up. For a time. But only for a time.
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