23 days ago I wrote an article Trade Gold In EUROS Instead of Dollars? Switching May Make Sense Soon where I presented the case that the GDP of the Eurozone didn’t support the appreciation the EURO was receiving over the U.S. Dollar, which also was experiencing lousy GDP numbers. It was the fact that the EURO was approaching its all-time highs against the U.S. Dollar that made no sense.
Read More0Nov
18
2009
But now that everyone is talking about the dollar weakness again, as well as gold breaking to new highs, Geithner is stuck between the proverbial rock and a hard place. If he takes the strong dollar stance, it could kill the stock market rally, especially if the Fed increased interest rates. If he lets the dollar fall too much, there could be a rush for the exit with Japan and China leading the way. There is a reason why Obama chose this time to take his trip to China. The U.S. needs to maintain the U.S. Dollar’s world reserve currency status. It cannot afford to become a second rate nation. Something has to be done.
Read More0Jul
14
2009
Gold and the EURO Connection; Another Nail in the U.S. Dollar Coffin?
By: Doug Eberhardt
Category: Gold
Tags: decoupling, Dollar, Economy, EURO, Financial Adviser, financial advisor, Gold, Inflation, Investing, Money, Stocks
Another story was developing at this time; the EURO had bounced off its lows and become a much stronger currency. As the dollar was sinking from its high in 2002, and the uncertainty of what affect Central Bank sales would have on the price of gold, the EURO became the only other “safe haven” in the mind of those who were looking to get out of the dollar.
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