Fed Rate Cut = US Currency Cancer

The USD hit a new all time low against the euro but has not breached the $1.40 yet. High yielding currencies, such as the AUD and NZD, were again in favour.

The dollar has fallen to a new all time low mark on the U.S. Dollar Index at 79.091. The notion that the U.S. dollar or U.S. treasuries or bonds are safe haven currencies or assets is likely to be seen as very erroneous in the coming months. Lowering interest rates will make the United States less attractive for overseas capital.

George Soros's investment partner, investment guru Jim Rogers told Bloomberg News that under Chairman Ben Bernanke, the Fed is helping Wall Street at the expense of everybody else. "If Bernanke starts running those printing presses even faster than he's doing already, yes we are going to have a serious recession," Rogers said. "The dollar's going to collapse. The bond market's going to collapse. There's going to be a lot of problems in the U.S."

Source: Gold Investments Market Update


Something has to give with the current and ongoing financial chaos. What entity do you think will be sacrificed?

1. The economy
2. The real estate market
3. Politicians
4. The Fed
5. The stock market
6. Hollywood
7. Britney Spears
8. The Buck

I vote nos. 3 and 4, but that’s not likely. What will the obvious answer mean to you in the long run? I guess we’re back to talking about the dollar once more. Do they allow visitors in hospice? Gold, silver, and real asset investments will reap the benefits of the ongoing dollar carnage. Next week, we’ll delve deeper into what the dollar woes actually mean to you and your family. [...] The dollar is due a bounce higher in the very short term. Those who successfully shorted it now have to buy it back to lock in profits. It should then resume its downfall.

by Dr. Russell McDougal, 19 Sep 07

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