Dollar Regains Some Ground
Jul 22nd, 2009 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar rose slightly against the euro. Late Tuesday, the euro was trading at $1.4199 vs. $1.4226 on Monday.
Except for the yen, the dollar gained marginally on most of its major rivals yesterday.
“Since the start of the financial crisis of 2007 there has only been one trade across all the capital markets — risk on or risk off. As equities collapsed, the dollar and the yen gained while the euro, the pound and the Aussie along with oil and gold declined,” said Boris Schlossberg, director of currency research at GFT.
“As the recovery trade took hold the process has reversed and all the risk currencies have marched almost lock in step with equity prices,” Schlossberg added.
In economic news, Bernanke was back in front of Congress yesterday, spouting economic fallacy after fallacy that the news media eagerly lapped up and politicians grossly mis-analyzed.
The always-vocal Rep. Barney Frank, the Democratic chairman of the House Financial Service panel, said that all the talk about inflation missed the point.
“The great mistake” to worry about, according to Frank, would be a “premature unwinding” of the Fed’s accommodative policy [meaning loose monetary policy and artificially low interest rates].
One reporter explained it like this: “In medical terms, if the Fed removes the medicine it has given the economy too soon, it could cause a relapse and another sharp drop in economic activity. On the other hand, if the Fed is too slow to remove the medicine, the economy could overheat, causing inflation.”
Too bad the medicine they’ve prescribed is the very thing that made the patient sick in the first place.
Source: Dollar Regains Some Ground
Advertisement
$592 Trillion Phantom Economy Blows as Latest Demon Derivative Unwinds
The worst demon derivative to date is about to whip down Wall Street...leveling what little is left! Over 700 banks (with trillions of dollars in assets) will come crashing to the ground. Hundreds of hedge funds will collapse. Corporate bankruptcies will soar. And another $20 trillion will be wiped off global stock markets. But this one bombed out investment will soar two to ten fold as the world comes undone.
Find out the entire story from the investment group who eerily predicted the current crisis "to a T!"...
Click here now and find out how to get started...
Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.