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Wednesday, October 6, 2010

Dollar Destruction resumes

The US dollar is continuing to make a beeline down lower. Everyone including me is expecting a US dollar rebound. I am looking for a rebound that fails around 79-81 before resuming it's downturn. Others like John Chinnock believe the dollar will ramp higher over the next year.

Assuming the dollar moves lower in the next few months, the US consumer is going to feel a real bite out of their pocket as energy prices should rise. This is in accordance with my prediction back in fall of 1998. What I believe what we will continue to see is natural resources becoming more expensive and a greater cost of everyone's budget. This will bring Western economics more in line with China an India. A general decline of western lifestyles and increase of China and India.

Natural resources resumed their rise Tuesday. Good luck as the Federal Reserve tries to blow another bubble, the results each time they do this will be worse than the previous.

Good luck

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