Thursday, June 4, 2009

Strong Dollar?

The American Greenback has been falling in value recently for obvious reasons. The U.S.A. has been printing money faster then most logging companies cut trees and with more dollars in circulation, the lower their value. The newly printed money along with the record trade deficits in recent years has caused talk of credit rating downgrades for the U.S.A. The real problem, though, is inflation. The strange part is that this could cause record valuations for the stock market. Jim Rogers, charman of Rogers Holdings, believes that you shouldn't be short in the market because we could see a massive rally. The downside? It would be in worthless money. I do believe that the U.S. dollar will continue to fall in value and that we may have a credit downgrade that would cause the cost of borrowing money to jump up but I'm not sure a currency crisis is imenent.

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