IMF Gloom and Doom for the USD

Hello Gaia inhabitants, please get rid of all your U.S notes and buy either Euro notes or even better buy gold, also buy a gun for protection, and a water filter. These are the main 3 tools to secure your future survival.

IMF Gloom and Doom for the USD
by S. Wade Hansen

Outgoing International Monetary Fund (IMF) director, Rodrigo Rato, ramped up the gloom-and-doom rhetoric toward the U.S. dollar (USD) today when he stated, "Up to now, movements in exchange rates have been orderly and in line with fundamentals. But there are risks that an abrupt fall in the dollar could either be triggered by, or itself trigger, a loss of confidence in dollar assets."

Why is it that it is always the "outgoing" people who start to ramp up their rhetoric. It seems that everyone who is about to leave a major post starts thinking about their legacy, or something, and decides they have to make inflammatory comments. Look at Alan Greenspan. He's been doing exactly the same thing.

Now, don't get me wrong. I agree with him that the USD is going to continue to lose value. I just don't believe anybody is going to allow it to run away in a panic. The people in power who aren't "outgoing" have too much on the line, and they are going to do everything they can to manage smooth movements. Just look at how cautiously the Chinese government is easing the yuan.

The USD is not dead. It may be fundamentally overvalued, but it is not dead. Continue to play USD weakness against strong currencies---like the commodity currencies (AUD, CAD, NZD)---when the opportunities present themselves. You'll be glad you did.

To see why we believe the commodity currencies are fundamentally stronger than other currencies at the moment, click on the following link:

www.pfxglobal.com...

[edit on 23-10-2007 by K-illuminati]