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Originally posted by undermind
Originally posted by questioningall
... the complete fall of the dollar, the list goes on.
Has he been predicting the fall of the dollar? Yes he has according to his bandwidth pig of a website.
The USD has vastly increased in value since the beginning of the so called global meltdown.
If you took a position on the foreign exchange market (forex) on July 6, 2008, roughly the beginning of the global meltdown.
You took a position selling the pair EURUSD, which means you are exchanging Euros for US Dollars, you are selling Euros and buying USD in the exchange.
You take a SELL position for EURUSD, which is a BUY position for the second currency in the pair (USD). Your position has a lot size of 1.0, which means roughly $65.00 would've been taken out of your account by your broker to fund the position:
Price EURUSD at 6 July 2008: 1.56900
Price EURUSD at 19 October 2008: 1.34000
= a fall for the pair of 0.22900
If you had cashed out that $65.00 position on the 19th of October,
the position would be valued at roughly $22,900.00 .
That's in four months, in the middle of the global meltdown.
People haven't dumped the dollar. The exact opposite. They have BOUGHT dollar, hand over fist like rice dinners in China.
Originally posted by questioningall
reply to post by Max_TO
Also, I listen to the experts who are willing to tell the truth, - Gerald Celente, Peter Schiff, etc.
You go ahead and listen to Jim Cramer and all those network people, of course don't think - there is an agenda behind what they are telling you either. Compared to those with no agenda and only trying to get the truth out to help people.
Anyone who bases their expectations for the economy on the stock market has no idea what the economy will do. As should be apparent at this point, the stock market can often be driven by irrational exuberance. Remember, it was almost three times as high in 2009 dollars back in 2000 as it is today. Did that make sense? Obviously if it can be driven by irrational exuberance it can also be driven by irrational pessimism. There is no obvious reason to believe that the market has suddenly become a better judge of the economy's prospects now than it had been in times past.
Of course even in principle the market is not reflecting the economy but expectations of future profits. An announcement that the government will shut down Social Security in order to make Citigroup, Bank of America, and other banks fully solvent would probably send the market soaring, even though it would likely be really bad news for the economy.
Of course there are grounds for thinking the economy is looking very bad. Recent data on existing and new home sales, durable good orders, and construction all indicate that the downturn will be even worse than most forecasts predict. But the public would be much better advised to make its assessments of the economy on economic data than the stock markets fluctuations.