Tuesday, December 11, 2007

Will U.S Dollar Crash ?

Gnutrade is all interesting. Its a New Financial Game

First the bad news: The U.S. trade deficit hit a record $666 billion in 2004, and the Euro is up 47% against the dollar since May 2002 and now compared it is totally declining. The dollars decline means slower economic growth, higher interest rates, a stagnant stock market and a slippage in the U.S. standard of living. All of which is enough to make me a pessimist.

Now the good news: The dollar isn't going to crash, and those market pundits urging you to short everything except gold and silver are wrong.

Don’t consider the extreme scenarios because they underestimate the feedback mechanisms in capitalist economies that kick in when a trend swings too far in one direction or the other. In the current case, these mechanisms will help limit the damage to the dollar -- and to the U.S. and global economies.

Thus U.S economies can be brighthened quickly.

www.gnutrade.com


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