Timeline for the dollar
- Is the economy stronger?
- Parity with the dollar
- Much has been done to prop it up
Timeline for the dollar. All eyes are on the strength of the U.S. dollar. There has been a big surge in the dollar. Why?
Is the economy stronger? It’s not likely. It’s because other currencies are getting weaker against the dollar. For example; the Euro hit a 12-year low versus the dollar. There’s been almost a one year rally for the dollar since last May. We see that within the next nine months the rally will end.
The Euro has fallen from $1.40 against the dollar to $1.10. People are saying that it could reach parity with the dollar. We believe it could even fall under parity with the dollar.
The Euro is a failed experiment and much has been done to prop it up, but it was all for nothing. One by one, countries will drop out of the E.U. – abandoning the Euro.
QUESTION: What should readers take away from this message today?
ANSWER: Don’t get too excited about the strength of the dollar, it’s all relative.
QUESTION: Why is this information timely?
ANSWER: This information is timely because, although the U.S. dollar will be the last currency standing, it’s getting weaker from decisions made decades ago.
QUESTION: How can readers best apply this information to their lives right now?
ANSWER: You should be diversified in what assets you own. Have some dollars, but also have some food and water and things you could barter with like medical supplies and fuel.
COMMENTARY: The dollar has been eroding since we went off the gold standard in the early 70s. Saying that the dollar is strong, as it relates to other failing currencies, hardly makes it a strong dollar. That’s like saying the dollar is the least ugly beauty queen. She’s still ugly. So don’t go whole hog on the U.S. dollar. Create your own “gold standard” and shore up your bets with real stuff that has real value…like trusted friends…and you will be okay.