Originally Posted by
ToiletDuck
...Due to other currencies starting to fall the dollar is gaining value again as well...
A week or so ago when I was in Tokyo I read a very interesting yet sobering article in a business oriented newspaper (can't remember the name of it but the paper was written in British English -
not Financial Times).
The gist of the article was that the current rise in the value of the US dollar is very temporary at best. The dollar rose simply because it's still the currency of choice in the times of crisis, however the author who's also a senior currency trader in London, predicted that a year or so from now we won't see a decline but rather a major collapse of the dollar.
I was surprised to read that but he basically implied that once the astronomical levels of the new bailout debt sink in, combined with the staggering national debt we already have and the Obama's pro-spending "any and all" job creation drive (including more government jobs
) - the floor will simply fall from underneath us.
I was surprised to read that because I felt that the US dollar has been one tiny beacon of hope as of lately, however if he's right then the beacon of hope won't last much longer.
I hope he's wrong but in the prelude to the article it was explained that in the past he'd correctly predicted major currency devaluations such as the British pound, Italian lira, Korean Won, etc, etc.