Tag Archives: USD

The recent super-dovish FOMC statement of an extended period of low interest rates and possibly a full blown QE 3 replacing the current “light” version...raises inflation risks and so pressures the USD....[That being said, I present below the GOOD, the BAD and the downright UGLY possibilities for the USD as 2012 unfolds.] Words: 1500

Regardless of what certain pundits and investors say, I believe gold will have a great run into the end of 2011. [Why?] Because I think a currency crisis is brewing worldwide, and gold will be a safe place to store value. The Euro and USD are fundamentally weak, and inflation is nearly out of control due to huge stimulus packages and low interest rates that aren't helping struggling economies. Gold should be the crutch to lean on for a while. [Let me expand on the aforementioned reasons.] Words: 675

Many lessons can be gleaned from history and, while no two periods are identically alike, there are often many similarities to learn from. The current period, for example, is often compared to the Great Depression in regards to unprecedented government action as well as with the 1970s in regards to trends in commodities and inflation. [Let's take a closer look.] Words: 1165

We are an environment in which a U.S. dollar (USD) collapse has fueled inflation trade mania. By launching additional quantitative easing (QE) measures at a time other central banks (e.g. the ECB and the Bank of England, among others) have renounced additional easing measures or are actively raising interest rates (e.g. China and Australia), Fed Chairman Ben Bernanke has made it clear he is willing to trash the USD. Words: 797