It's All About Debt And Currency Devaluation

Any discussion about the direction of the secular trend in U.S. dollar that fails to mention debt is incomplete. The dollar is headed lower because currency devaluation is the only viable political option to handle industrialized nations' excessive debt burdens. This includes the United States. So, while the headlines focus on the day's new flavor of the day (i.e. better than expected economic data), they ignore what's driving the secular trends. It's all about debt and currency devaluation. Roosevelt knew it, but most of the public did not. This commentary and chart could be repeated on regular intervals for another ten years without widespread public recognition of what's driving the trends.

Total Credit Market Debt As A% GDP:


Headline: Why the Dollar May Make Comeback

One of the favorite bets in the market right now is short the U.S. dollar. But could the greenback be in for a turn higher?

The case against the dollar is strong and widely held. Last week, the Commodity Futures Trading Commission's weekly report of currency positions showed that almost all speculators were short the dollar and long the yen, euro, pound, Swiss franc and other currencies.

Source: finance.yahoo.com