posted on Sep, 9 2011 @ 02:31 PM
Now, let´s have a brief recap on the forces and agendas that have mainly influenced the trade in the U.S. dollar - the big dog that the world
virtually revolves around.
A lower dollar benefits DOW multinationals. This results in more dollars to book home in the US, thus inflating revenue and profits, resulting in
rising stock prices. This very archaic and obsolete 30-company index then leads the rest of the stock market, indeed world stock markets.
A lower dollar also benefits commodities whose price is denominated in dollar. Since most of these commodities are produced and extracted outside of
the US, a falling dollar leads to increasing production costs in local currencies, thus resulting in demand for more dollars to meet those costs.
So, you see the obvious and gigantic agendas for keeping the dollar down. All the while this play has been increasing economic input costs into the US
economy, which is very heavily dependent upon imports and consumer spending. At some point this mess got too one-sided and was forced to reverse which
is what I´ve been trying to communicate on this thread. Markets will always correct themselves eventually and they have no incentive at all for
self-destruction. They will always be right in the end because they will after all always be there no matter how many of us individuals pass on.