IS THE ROLE OF THE DOLLAR CHANGING?
Recently the U.S. dollar’s preeminence as an international currency has been questioned. The emergence of the euro, changes in the dollar’s value, and the financial market crisis have, in the view of many commentators, posed a significant challenge to the currency’s long-standing position in world markets. However, a study of the dollar across critical areas of international trade and finance suggests that the dollar has retained its standing in key roles.
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The purpose of this article is to confirm the importants of the US Dollar in International trade–Well Done.
As I have mentioned before:
In the USA we have Bankrupt Banks and the FED as a willing lender.
(Monetizing Debt)
In Europe they have Bankrupt Countries and they cannot save themselves.
(Failed bonds auctions)
What does this have to do with the USDollar?–
Thats why you hear the reports of Flight to Quality? a curious term.
I liken this to a “Pony Express” rider jumping off one Dead Horse to one not quite Dead.–Good for a few more miles.
Note to self–Finally-Precter is right about the direction of the USDollar– Up!
Well this “Confirmation” leads to a “Bunch of Stuff” going on Internationally–
Needless to say a strong dollar –not so good for International Trade.
Well my “Old Brain” is remembering these recent conference calls and the reliance on International Trade for earnings—Hum- -wonder how thats going to turn out next earnings season?–Earnings?–another curious and qualifying term.
On the other hand—a Strong USDollar would gives us lower OIL/Gas prices and “CLEAR” the over supply condition in the Oil markets.
A Strong USDollar would give us lower commodity prices overall–in the long run a good thing.
A strong USDollar will give us lower “DR. Copper” prices and “CLEAR” the over supply condition in that market.
Note the term “Clear” this is the normal mechanism of markets to adjust
“Over” Supply and Demand.
Going Forward-
Has anything Fundamentally changed since March 2009— “Perceptions”