Fluther: Do you think the US dollar will rally?

Do you think the US dollar will rally?

) April 6th, 2011
16 responses
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I’m moving to Australia and going to have to transfer USD back- I looked today and for the first time I can remember the usd is down against- should I wait and hope it comes up?

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Topics: money, dollars, foreign exchange

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Answers

Early 2013 at the earliest. Until then, incompetence will still keep its value down.

12Oaks (4051

)“Great Answer” (1

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Not as long as the Federal Reserve keeps kicking out currency at a record pace.

WestRiverrat (20117

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The only way we’ll ever be able to pay our debt (and even more suddenly if the USD is dropped as the world’s reserve currency) will be to make it worthless.

No, I don’t expect a recovery now or any time in my lifetime.

WasCy (10112

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A large component of this is psychological. Note the first three responses all have a lack of faith. Probably this isn’t a unique sentiment. So one might guess the dollar might lose value for the foreseeable future in part due to a lack of confidence.

cockswain (15286

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I truly hope it does, because the euro exchange rate is killing me

Foolaholic (5804

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It’s less a matter of faith, I think, than of simple supply and demand. We keep printing them, and the rest of the world wants them less and less. Zimbabweans could tell us all about this phenomenon.

WasCy (10112

)“Great Answer” (3

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@WasCy so could any Germans that lived through teh Weimar Republic.

WestRiverrat (20117

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USD vs AUD possibly small enough volume that pricing is controlled and won’t trend with reason. Trade em when you need em.

dabbler (18896

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Agreed, @WestRiverrat. Except that anyone who was in that position then (and still alive) was a child, and probably not in a position to comprehend then. However, this has happened many times since then, in Argentina, Brazil, Russia and other places, as well.

WasCy (10112

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Did you know our economy would actually do better if its value was down?

Why do you think China keeps its money artificially so low, and the rest of the world is angry at them about it?

tedd (14078

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Not in your lifetime.
There is no way that Americans can work off their debt without paying it with inflated dollars, printed capriciously by the treasury.
Soon enough, nobody will want worthless paper, and they will be trying to unload dollars, not take them as a unit of exchange.
In order to accept them, they will have to have lots and lots of them. A barrel full of them. Talk about a poor exchange rate.

josie (30934

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