The US dollar is inevitably going to decline against everything...
.....
don’t put money on that one.
The likelihood grows daily that the pubbies will storm back into congress come the fall. there will be a night of the long knives on the budget and —less likely—higher taxes. that combined with the growing US economy—and it is growing in 2010—though it may be siphoning off 2011 growth—will lower the deficit.
The euro is in deeper doo doo.
The US dollar will decline against the chinese yuan but against the yen and euro— not so much. the likelihood right now is that the dollar will strengthen against the euro. betting is they will go back to parity.
I agree that the dollar will not necessarily decline vis a visany currency who's government dosn't inflate their currency as much. Thus, you may be right about the Euro. They have been in the same economic death spiral.
The dollar may not decline againt other currencies, but still may wind up heavily devalued.
IOW, 5 years from now, the dollar may still buy (approx.) .8 Euros and/or 100 Yen, but it may take 10 dollars to buy a loaf of bread or 5,000 dollars to buy an ounce of gold.
See what I'm sayin'?
Dollar vs. the Euro, Yen, Pound etc. is good for currency traders, but not very good for determining real value.
Agreed, while everyone is focused on QE and inflation...they don’t see the 500 trillion dollar gorilla in the room...Credit Default Swaps...as of yet to deleverage.
“The bubble that ate the World”.”