SOS US Dollars

Why?

• too huge a trade deficit and budget deficit


• continuous printing money via stimulus plans and guarantees


• too huge of toxic assets like CDS (USD60 trillion), CDO (USD5 trillion), Derivatives (USD350 trillion), mortgage market (USD20 trillion)


• no more options as interest rate is near zero


• consumption collapse due to unemployment


• government intervention, deepen the crisis


• continue spending and printing money

Then why is US dollars appreciated against all major currency in 2008 except Yen?

• deleveraging


• other countries like Europe is similar trouble


• unwinding of carry trade

How long will the US dollars continue to hold?

• this is a trillion dollar question, some expert say less than a year, some say, 2 yrs but certainty is 100%

MyView

• US dollars will collapse in less than a year, by March 2010 (my view only)


• Gold will soar to USD2000 per oz by March 2010