This weekend, CrushTheStreet.com just released a brand new documentary “Death of King Dollar.” If you haven’t had the chance to watch this video, please take the time to do so. The compelling facts that are supported in this video as to why the dollar will be short lived as the king.
If you’ve been plugged into the economics of what is happening with the U.S. dollar this past year and specifically this last quarter, the U.S. dollar has actually been appreciating. In fact, it has grown more this year than it has done in the last 6 years since the 2008 crash, when there was a “flight to safety” into the U.S. dollar. Against a basket of the euro, yen, pound and six other developed-nation currencies, the greenback has gained 7.3 percent this quarter and 6 percent for the year — the best performance in the group for either period, according to data compiled by Bloomberg.
In an article I read this morning, the news regarding the short-term blip in the dollar strength was tremendously praised. One of the points that is emphasized in this article was that in the euro zone and Japan, central banks are continuing low interest rate environments and have no near-term plans to tapper stimulus while the Federal Reserve has intentions to raise interest rates.
Whether you knew about the dollar news or not, if you live in the U.S., you’ve probably noticed gas prices getting cheaper while precious metals pulled back. Commodities in general, reflect the state of the dollar and move in accordance with hard assets.
My own personal opinion is that the new news is all short-term. In every market there are retracements and corrections. In this case, it was an upward retracement and it’s making everyone feel good about the future of the dollar. The facts however are bleak long-term. The world is doing what it can to get off of the dollar. This isn’t the 1950s anymore where the U.S. was light years ahead of the 2nd largest superpower. The strength of the economy was justified with sounder fundamentals and the country was a producing nation. Now, the economy is being held together with threads, and the world is hesitant about transacting and saving in what will be a volatile currency.
The word to describe the world breaking away from the U.S. economy and the dollar in particular, is decoupling. Because everyone is so tied into each other, when the euro zone suffers, the U.S. suffers. Likewise, when the U.S. went into financial crisis in 2008, the rest of the world also fell into a depression. Countries around the world do not have the historical faith they once had in the U.S. because of 2008 and the direction the U.S. is headed.
Countries are taking steps to not be as exposed and as vulnerable to a financial slowdown in the U.S. as they once were. The long-term trajectory for the U.S. is bleak and all one needs to do to see this is watch our detailed documentary that gives a clear understanding of how the world is decoupling from the U.S. dollar.
Short-term retracements are going to be expected. The exact timeline on when this will ultimately play out is unknown, but having foresight into this subject will prevent ignorance in a society manipulated by the few in charge.
Be sure to visit our “Death of King Dollar” Documentary to get up to speed on the current state of the U.S. dollar!
Chief Editor at CrushTheStreet.com