| The dollar has recently fallen to an all time low | | | | the decline of the dollar and excessive volatility in |
| against the euro and one of the worst scenarios for | | | | exchange rates is damaging to the growth and |
| the world economy for the last few years has | | | | economy of all regions of the world. Especially China |
| involved a dollar crash. Is it time to prepare for that | | | | who currently owns a substantial portion of the US |
| crash now? | | | | debt. Also the euro's rise is beginning to hurt the |
| We must ask ourselves, what would cause a dollar | | | | competitiveness of Europe's exports and there is the |
| crash? It would have to involve America's | | | | possibility of central bank intervention to protect |
| dependence on foreign capital it's most dangerous | | | | against the strong euro and weak dollar. |
| vulnerability. America's dependence on foreign capital | | | | In the near future the dollar decline and further |
| has lead to its large deficits. Do the US deficits | | | | weakness most likely will continue. I am not about to |
| threaten its and global financial stability? So long as | | | | stand in the way of such a strong trend as the dollar |
| the US remains the most attractive foreign | | | | is near all time lows against the euro. But as |
| investment destination in the world it can sustain such | | | | everyone is talking about the weak dollar and my |
| large deficits. However, if some event would occur, | | | | neighbors talk about hedging themselves against the |
| like say a crisis in the American financial markets that | | | | weak dollar I know one of those rare opportunities is |
| would spook foreign investors and cause them to | | | | beginning to present itself just like it was obvious to |
| ditch the dollar fast then the dollar will tumble. | | | | me the bull market in US equities was coming to an |
| The sub-prime mortgage woes was just such a crisis | | | | end once my mother and her "investment club" |
| and to be honest the dollar held up pretty well. In | | | | began buying and selling stocks online or when a |
| fact this events showed clearly that if private | | | | photographer at a wedding told me how he was |
| investors become frightened central banks will pick up | | | | going to begin flipping houses I also knew we had |
| the slack. In order to abandon the dollar there would | | | | reached a top in real estate prices. |
| need to be an alternative choice for foreign | | | | A worldwide "ditching of the dollar" would bear |
| investment and there simply put is not. | | | | astronomical consequences. I do not believe anyone |
| The stability of the US politically and socially, in spite | | | | is ready to allow that to happen and I do believe |
| of its enormous deficit, still leave the US the world's | | | | there will be intervention to prevent it. Like I said |
| most stable and reliable economy. Although Europe is | | | | though, I will not just jump in with this extremely |
| stable politically, its slow growth make it an | | | | strong trend in place so I will use my strength and |
| inadequate substitute for foreign investors. And even | | | | talents as a technician to get into this trade. |
| though China's rapid growth is inviting, the threat of | | | | In the member area in the Rules & Methods |
| political instability deters any long-term bets on its | | | | section you will find the methodology on how we will |
| economy which in itself is still very young and needs | | | | approach this trade. We will be trading the 4 hour, |
| time to mature. | | | | daily, and weekly time frames as this is a long term |
| My long term outlook is to buy the dollar and sell the | | | | strategy. Since our positions will be short, the eur/usd |
| euro. | | | | will be collecting interest and pips the whole way. |
| In the long term nobody has anything to gain from | | | | |