Dollar Index

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twig_oak's picture
twig_oak
Status: Member (Offline)
Joined: Aug 29 2009
Posts: 11
Dollar Index

I woke up this morning and was surprised to see the dollar index had plunged over night. It was 77.17 and had dropped approximately 1%. My question is

twig_oak's picture
twig_oak
Status: Member (Offline)
Joined: Aug 29 2009
Posts: 11
Re: Dollar Index
matt31nancy wrote:

I woke up this morning and was surprised to see the dollar index had plunged over night. It was 77.17 and had dropped approximately 1%. My question is

This should have read my question is what levels would forum members feel that would indicate significant inflationary concerns? How significant is the dollar index to determining inflation pressures? What other parameters should I be paying close attention to? Thank you in advance for your input on these matters. This site is providing me quite an education and I am still a newbie trying to gain as much knowledge and understanding of these exciting times. I must say a year ago I was fat, dumb and happy. Now I am still fat, not as dumb and not so happy but am grateful for my awakening.

sjdavis's picture
sjdavis
Status: Bronze Member (Offline)
Joined: Sep 21 2008
Posts: 78
Re: Dollar Index

CM recently wrote about the rate of foreign holdings of US Treasuries - currently the steepest rate on record.  This is likely where a dollar crisis is born.  When the brakes are pulled on that funding the US will not have working funds.  Highly likely confidence in the dollar would fall rapidly, resulting in a dollar crisis.  In this scenario, using the dollar index might only be useful in hindsight.

Not sure if that spells inflation or deflation - but it seems obvious dollars would be a high risk place to store wealth.

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Dollar Index

The dollar is a deadman walking.

China, the UN are all wanting a new reserve currency. Our printing is becoming their albatross, our debt is dragging them down with us. We are the debtor nation of the world with over 80 trillion owed out.

When I see stuff like this in the mainstream media I know it is just a matter of time.

UN wants new global currency to replace dollar... 
China alarmed by US money printing...
Switzerland topples America as most competitive economy...
Weakening...
Obama Asks Senate To Increase Debt Ceiling...

twig_oak's picture
twig_oak
Status: Member (Offline)
Joined: Aug 29 2009
Posts: 11
Re: Dollar Index

Thanks Davos - my education continues. Sometimes I can't believe how naive I was, they say ignorance is bliss but I don't think it will be for long.

Thanks

Matt

Davos's picture
Davos
Status: Diamond Member (Offline)
Joined: Sep 17 2008
Posts: 3620
Re: Dollar Index

Anytime, and I'm not an advisor, economist, planner so I can't advise what to do, and I could be wrong, though common sense dicates this is a simple problem that has been made into an overcomplicated mess.

I look at inflation as how much money is out there. Too much and it reduces the store of value and things become pricey.

In this case we can and likely will have what people call "hyperinflation" or what most people call high prices for everything, but IMHO it will result from the collapse of the currency. 

I have faith in the 4 g's G(religous so I'll skip that and go on to the next) Gold, Government will scr*w things up worse, Guns. Silver I have faith in also.

IM never so HO this mess was bought on by the government dating back to 1913 when they placed the cornerstone to the Empire. They blew it, they kicked the can to us and now we are going to be left holding the bag.

Take care

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