They are telling the ME the $ is COMING BACK

[randalln]

28 Jul 2011

There is reason to be optimistic on greenback

• Text size

Thursday, Jul 28, 2011

Gulf News

Abu Dhabi: The US dollar is likely to reverse its sharp decline before the end of the third quarter and appreciate significantly by the year-end against major global currencies as there’s simply no alternative on the horizon to the world’s reserve currency yet, experts say.

So don’t write off that dollar just yet. There’s a very valid reason for this argument. Almost 72 per cent of world’s currency reserves are held in US dollars. Despite a recent sharp fall in the US dollar on concerns whether the US would be able to raise its $14.3 trillion (Dh52.52 trillion) debt ceiling before August 2, the day the US government would exhaust its borrowing authority if the ceiling is not raised, analysts say a US debt default is highly improbable.

However, if the US does default on some of its debt obligations and in the process gets stripped off its elite AAA rating by the ratings agencies, that would trigger a global flight to safety with more money being pumped in to buy US debt, which would drive the yields on US short-term and medium-term debt sharply lower as the US treasuries remain the ultimate safe haven. That would trigger a sharp dollar rally.

“No treasury other than the US Federal Reserve is large enough to absorb capital inflows from around the world,” said Pradeep Unni, senior relationship manager at Dubai-based Richcomm Global Services DMCC.

<br style="font-weight: bold; ">Eurozone

“There has been a gradual worsening of the debt crisis in the Eurozone, which would enable the dollar to recover. However, for the dollar to recover fundamentally, you would like to see a rise in US interest rates,” said Giyas Gokkent, chief economist with National Bank of Abu Dhabi (NBAD).

“The US is facing declining stock and real estate prices, increasing food, commodity and energy prices, trade and fiscal deficits, increasing unemployment and inflation, decreasing investment, stagnant productivity levels, low confidence levels, decreasing consumption, low savings level, increasing cost of debt in a credit dependent economy and failures of major investment banks,” Unni said.

This is all a big game(Debt Limit hahaha) to get every currency involved ....... Mark my words

Edited July 31, 2011 by randalln

[tilak]

This is very logical and makes sense in the near term (next two quarters) Overall the dollar will be replaced by an International Monetary Unit for Global Commerce.

[randalln]

This is very logical and makes sense in the near term (next two quarters) Overall the dollar will be replaced by an International Monetary Unit for Global Commerce.

Maybe

Or maybe not why change horses mid stream

Just change the color and call it a day

Because really if you look carefully all currency is the $

Right?

[estewart]

I think they should make the dollar actually worth something.

Say, one good sea shell per dollar.

[The RockStar]

I think they should make the dollar actually worth something.

Say, one good sea shell per dollar.

Every shell ive found in the past 8 years is worth more than any currency could be worth (with my kids in the Philippines)

[ngodstust2]

28 Jul 2011

There is reason to be optimistic on greenback

• Text size

Thursday, Jul 28, 2011

Gulf News

Abu Dhabi: The US dollar is likely to reverse its sharp decline before the end of the third quarter and appreciate significantly by the year-end against major global currencies as there’s simply no alternative on the horizon to the world’s reserve currency yet, experts say.

So don’t write off that dollar just yet. There’s a very valid reason for this argument. Almost 72 per cent of world’s currency reserves are held in US dollars. Despite a recent sharp fall in the US dollar on concerns whether the US would be able to raise its $14.3 trillion (Dh52.52 trillion) debt ceiling before August 2, the day the US government would exhaust its borrowing authority if the ceiling is not raised, analysts say a US debt default is highly improbable.

However, if the US does default on some of its debt obligations and in the process gets stripped off its elite AAA rating by the ratings agencies, that would trigger a global flight to safety with more money being pumped in to buy US debt, which would drive the yields on US short-term and medium-term debt sharply lower as the US treasuries remain the ultimate safe haven. That would trigger a sharp dollar rally.

“No treasury other than the US Federal Reserve is large enough to absorb capital inflows from around the world,” said Pradeep Unni, senior relationship manager at Dubai-based Richcomm Global Services DMCC.

<br style="font-weight: bold; ">Eurozone

“There has been a gradual worsening of the debt crisis in the Eurozone, which would enable the dollar to recover. However, for the dollar to recover fundamentally, you would like to see a rise in US interest rates,” said Giyas Gokkent, chief economist with National Bank of Abu Dhabi (NBAD).

“The US is facing declining stock and real estate prices, increasing food, commodity and energy prices, trade and fiscal deficits, increasing unemployment and inflation, decreasing investment, stagnant productivity levels, low confidence levels, decreasing consumption, low savings level, increasing cost of debt in a credit dependent economy and failures of major investment banks,” Unni said.

This is all a big game(Debt Limit hahaha) to get every currency involved ....... Mark my words

Excellent post, the whole world is dependent on the US dollar.

[coldwarvet]

Excellent post, randalln! We should ignore the naysayers on this topic in the mainstream media and elsewhere. The USD is here to stay.

[k98nights]

Please provide a live link to each news story. Thanks.

[tmcgraw]

Randalln,

Didn't you claim you had cashed out?

Did you or did you not cash out.

Edited August 1, 2011 by tmcgraw