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the question is not whether the future of the dollar is bad or not, it’s whether it’s worse or better than it was the day before. Lately, with the ECB and BOJ having to renew their easings yet again, and the Japanese MOF actively wishing the yen lower, the Dollar, as bad as you or I may think it is, it better than the two largest alternatives.

And the budget deficit in the US is declining, and the hawks on the Fed are making rumblings of slowly ending QE, and the stock market is going ballistic. There’s a LOT of reasons why the “last refuge” investment of precious metals are trading like crap relative to dollar based assets.

And the budget deficit in the US is declining, and the hawks on the Fed are making rumblings of slowly ending QE, and the stock market is going ballistic. There’s a LOT of reasons why the “last refuge” investment of precious metals are trading like crap relative to dollar based assets.\
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Here’s a few more. The budget deficit is not just declining—its almost going to be cut in half in 2013—to 640 billion. That’s mostly the result of economic growth. If growth keeps up—the deficit will be gone in two years or so.

US economic growth is largely underpinned by the second thing that pushing the dollar up: OIL. The USA is delivering oil supply shocks to the world. We are inverting the events of 1973. Two things happened that year. The opening of the Watergate hearings that investigated Nixons efforts to influence the 1972 election. Also in 1973, came the first oil embargo—which jacked up the price of oil by reducing the supply. Now remember what happened in the next six years—that is between 1973-1979— to the price of GOLD.

What’s happening this year is the inverse of that. This time the dems/obama are on the hot seat for election irregularities. Oil supplies by the US are increasing every year. The US is slated to be oil INDEPENDENT in 4-5 years. This is just enormous. It means among many other things that the US government receipts are going to be so great that government deficits will shrink to relative nothing.

As well, the US dollar has had 75-150 trillion dollars worth of oil reserves added to back the dollar.\

Oil independent countries generally don’t have weak currencies.

What do you think this will do to the price of oil over the next 6 years? (read it this way. Any old gold bug over 60 years old who knows his history — is going to bail out of gold. Period.)

Last point. This one is speculative. There is a growing sense that Obamacare doesn’t have a future. imho the Supreme Court will knock down obamacare later in the year.

With Obamacare out of the way US growth rates imho will tack on another 1.5% annually. This will significantly slash the federal budget deficits—which will help collapse federal borrowing.

...the Dollar, as bad as you or I may think it is, it better than the two largest alternatives.

This is an excellent point that is easy for me to forget. All world currencies are basically "relative" and the current benchmark is the US Dollar.

...the budget deficit in the US is declining...

Now this is something that doesn't make sense to me. Although the "deficit" may be declining, it is still a deficit, so the debt continues to climb. Also, there is no proposed plan that has any real legs to turn the deficit into a surplus, so the debt should be expected to continue to increase into the foreseeable future. How is the growing debt not a significantly bigger factor on the value of the dollar than a declining deficit?

——— the budget deficit in the US is declining,-——

However, the debt is rising and Sec Lew went to war to get the ceiling raised. The status is still bad, very bad.

The falling gold price is I believe anomaly. It apparently is first degree organized anomaly