Just out of curiousity, what's your time frame on this? I don't necessarily agree/disagree, but how long can you stay solvent on your shorts if the dollar takes off in the short term?
Dollar won't take off until at least next March, imho. And that's just going to be yet another dead cat bounce in the dollar. Bernanke can't and won't raise interest rate. If he raises interest rate, the economy will be crippled. This is going to be one hell of vicious cycle. More swap lines, Fed printing, too many US dollar bottom callers, Prechter coming out in Bloomberg saying US dollar bottom is in. Just way too many reasons for this piece of trash to go to the toilet. So many traders are long US Dollars now hoping for the currency to rebound. They're about to get margin calls as the Fed itself printing hundreds of billions of dollar, silently devaluing the value of the currency. I have no stop, this is impulse wave down in the US Dollar. And it won't recover even if the stock market selloff, imho. Long equity is better as the world is currently basked in US dollar liquidity. Just my opinion.
i really dont disagree with anyone here. but my question is why has the pound surged against the $? they have printed money to buy bonds, and run a deficit as much as the usa does.
pound buyers more eagar than sellers. that's all. fundamentals are a hobby for after market hours and to think you know where angels fear to tread.
I don't recall Schiff ever pumping the EUR or European stocks? He's in love with CAD/NZD/AUD + the asian currencies & stocks AFAIK.
http://www.europac.net/ Anyway, as far as the Euro goes I remember him stating he could think of a thousand reasons why you shouldnt own it but he could think of a thousand reasons more why not to own the USD. But yes, obviously, he sure is bullish on those commodity currencies and Asia.
Ya shame...he is a bright guy.....but has a bit of a god complex. As a result of this he is seeing his nought with out a mirror. (Long bonds short equities...gulp!!!!)
Bernanke speaking @ 10 AM ... shorting US$ more aggresively.. maybe one day we can have a cool headline in CNBC "Dollar index drops 5 points as Bernanke speaks" ... Boooyah! PS - USD/MXN, USD/ZAR