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1000+ Penny Miser Member
USA
3121 Posts |
 Posted - 12/27/2009 : 20:56:01
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I think it's the same reason the $USD was strong in late 2008. Only this time it has been because Wall Street and other international investment houses booked their profits, and then bought US Treasuries with the proceeds. While late 2008 was aggressive selling of assets to stay afloat at any cost, December 2009 has been just profit taking to protect investment house bonuses.
My Fearless Forecast: In the next few days, money that went into hiding to protect bonuses will reappear. The previous trend of a weaker $USD, stronger commodities (including GOLD and SILVER), and stronger stock markets will reimerge once again.
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---> Come to the new and improved realcent: http://realcent.org
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
– Theodore Roosevelt
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wheeler_dealer
Penny Collector Member
USA
402 Posts |
Posted - 12/29/2009 : 21:15:16
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It is strong because all the foreign central banks in the BRIC countries are divesting their dollars into other foreign currencies as well as commodities. This exodus is causing Uncle Sam to have difficulties selling all their debt on the open market. While the government continues to manipulate the market interest rates uncle sam has to buy his own debt. I/E the printing presses run continuously (hypothetically) as the govt is forced to repatriate all the outstanding debt coming due.
My 2010 prediction- Based on the printed and televised data we are fed everyday if you read between the lines you may deduct that we may expect continued strong appreciation of food commodities (wheat,corn,soy,sugar, etc). Base metals will stay strong and possibly see more record growth as foreigners continue to put the foreign reserves(U.S.$$$) into hard goods. Watch steel,copper,platinum, as well as Gold and silver even nickel continue to hold onto the gains they have made and possibly see double digit gains in the new year.
The U.S. consumer confused by all the mixed information will continue to save thinking that is the best hope of surviving.
I may prove to be wrong, however, my advise to fellow forum members. PREPARE for food inflation in 2010 and beyond as the chinese and india and south american countries will be big buyer of U.S. food commodities mentioned above which are staples of our everyday diet.
Hope I am wrong, Pray I am wrong ... don't wait for the storm Prepare now the worst outcome is you may have a full pantry and not have to shop for a while. Better to have and not need than need and not be able to afford. |
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1000+ Penny Miser Member
USA
3121 Posts |
Posted - 01/04/2010 : 09:04:11
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My Fearless Forecast looks good today!!  |
---> Come to the new and improved realcent: http://realcent.org
The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.
– Theodore Roosevelt
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Lemon Thrower
1000+ Penny Miser Member
USA
1588 Posts |
Posted - 01/04/2010 : 09:22:32
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| u.s. companies with overseas subs often convert foreign profits into dollars and bring them back to the u.s. so there is year end demand for dollars. |
Buying:
Peace/Morgan G+ at $15.00
copper cents at 1.3X
wheat pennies at 3X
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Why Is the $USD Strong in December?
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