Comments on: Why We Need A Weak Dollar

By: Carlo Mendez

Carlo Mendez — Mon, 22 Jun 2009 13:14:55 +0000

What backs up the US dollar are US goods and there are plenty/endless choices. Thus holders of US dollars can cash in their holdings by purchasing US products.

By: MoneyDragon

MoneyDragon — Sun, 21 Jun 2009 17:10:51 +0000

The dollar is doomed – the only question is when the broad populace will see it. I was laughed at when I predicted 1.50 vs the Euro – how could the all powerful nation with the most nukes ever slip to $1.50? OK, next target is $2.00.

Regarding the question about the intenational gold price – I don’t see it move very far for a while. In fact, I see gold falling first. You can’t eat gold; it is a safety valve only in normal recessions – this one ain’t normal. In fact, it is a depression in its childhood.

The dollar problem goes very deep – the dollar has lost app. 94% of its value since the inception of the Fed. Devalution (= inflation) is built into the system as a way of stiffing stupid investors.

The question about how to invest in commodites is a good one. I don’t know whether I’ll be right, but I am inclined to buy foreign producers, e.g. Canadian mines from potash to oil. This way you particpate in commodities but also protect your money.

By: Joe

Joe — Thu, 18 Jun 2009 23:22:33 +0000

The Dollar has been weak for several years now, since 2002 it has plunged against most major currencies. Although declining in value, I don’t think its doomed. Its not the end of the world but more of an era. International economies are expanding impressively relative to the US. I live overseas and have noticed that the standard of living in the country where I reserve is about on par with the USA.
A “doomed” dollar though would be an ominous sign for the USA as a whole since its a unit of our nation’s wealth and buying power, and relative to the rest of the world that buying power has diminished considerably. I still think “Doomed” is a bit too strong maybe losing its shine more than anything.

By: Sridhaba Mahapatro

Sridhaba Mahapatro — Thu, 18 Jun 2009 10:04:06 +0000

As per your view if US $ loses its weight or when it weakens compare to most of the currencies,do you expect the international gold price which has a negative corelation with US $ will go up from this level.

By: ron s

ron s — Wed, 17 Jun 2009 16:42:54 +0000

GOOD ARTICLE,BUT HOW DO WE INVEST IN COMMODITIES.
THROUGH ETF’S OR HARD HANDS ON REAL COMMODITIES.

By: Ronald L. Lyons

Ronald L. Lyons — Wed, 17 Jun 2009 15:55:56 +0000

Your simile: “like a prisoner with a life sentence” is poignant. I heard Fred Angel of the Treasury say that he would do anything to maintain the dollar’s status. A man in prison still clings to the bars in hope.
Thank you,
RLL

By: jim

jim — Wed, 17 Jun 2009 15:45:36 +0000

This letter today — and your comments re. the dollar — make a lot of sense — thank you.

By: Garry

Garry — Wed, 17 Jun 2009 14:58:17 +0000

A weaker dollar is also a way of paying (repudiating) our debt. What is the alternative?
Are we actually going to pay back what we owe?
I doubt it.

By: Kunkiw Lee

Kunkiw Lee — Wed, 17 Jun 2009 11:11:49 +0000

I would like to learn What is INVESTMENT U.

I hope your guide.

By: Pat De Esposito

Pat De Esposito — Wed, 17 Jun 2009 10:52:49 +0000

Sadly, I believe the dollar is doomed. We, as a nation are too far down the slippery slope to turn back. What is the morality of paying off debts with cheaper dollars? Is it different from stealing?

p.s. I used to work with a man named Clayton Guth. Is Julia Guth a relative?