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Originally Posted by wig
I'm not sure how much help this is, but if you look at the last 2 years, here is what the dollar index has done:
March 2008 to March 2009 (this is during the meltdown) US Dollar index rallied from 71 to 89
March 2009 to Dec 2009 (this is during the recovery period in equities and commodities) US Dollar index fell from 89 to 74.
Dec 2009 to date US Dollar index rallied from 74 to 81
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Indexed, you're right. I'm looking it as a value against gold, which it has done the exact opposite. Unfortunately the USDX doesn't include gold.
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Well, I'm not sure what more I can explain. Commodity prices on the whole have collapsed from their highs. I mentioned that Gold and Sugar were exceptions in that they exceed their 2008 highs. If hyperinflation and US dollar demise was real today, then commodities priced in dollars would be in bull markets.
This is not the case and it is not solely my opinion. I used the CRB to illustrate, but go look at the charts of individual commodities.
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No, I understand that debt defaults are causing underlying assets to crash. What i'm saying is, soon there will be a treasury default, which will cause the dollar to crash. Obama and Bernanke are going more into debt to support the current asset prices, but there will be a tipping point where the dollar takes a hit.