Geithner quotes last Friday supporting the buck.

"The world wanted to be in Treasuries, in the safest and most liquid markets, and you saw the dollar rose when people were most concerned about the future of the world," he said.

"That is a very important thing. It's not something you can count on. It's something we can understand, and we can continue to foster, and we're going to do that," Geithner added.


The coming rise of the buck cannot be telegraphed better than that. Full story below.

http://finance.yahoo...e...ml?x=0&.v=1


GS.

What did you expect him to say? That they have no intent to support the dollar? IT

What did you expect him to say? That they have no intent to support the dollar?

IT

Context, timing and purpose. You don't see that often from this clown.

GS.

The bottom line is that 1) there are many times in history with currencies where a government is actually supporting, ie buying the currency, etc, where it does not work. This type of talk falls well short of that. 2) the market is going to want to see some type of hard action out of the OBama administration in terms of debt control, higher interest rates, cost cutting, etc etc. This does not even appear on the horizon right now. So for now, it's simply a race to the bottom in terms of these currencies. Expecting a major rally out of the dollar is futile in my opinion. A few up days...OK. Probably just another shorting opportunity. Either way, I'm looking at the charts for signs. I'm not seeing anything right now. IT

Barrons front page - Ben, you need ot raise rates to 2%

Barrons front page - Ben, you need ot raise rates to 2%

UUP seeing huge volumes, since September gap the volume has been almost equal that of the previous 6 months move down combined, while price barely nudged down in comparison. Huge volumes are usually signs of a bottoms in forming, capitulation etc. There are also many divergences in RSI, MACD and stoch whatever that is worth.

I do not trade this but I would be about to go long around now if this was what i traded.

Everytime loans get called back that is $$ getting destroyed and banks are not really loaning much, so money is not really getting created any mor ethen destroyed. Look around you, I only see deflation. I could buy almost anything today for cheaper then I did in 2007. my 2 cents

Edited by dadook, 19 October 2009 - 01:54 AM.

Asset inflation requires credit, commodity inflation does not. Its not as simple as deflation or inflation. Those terms were created to confuse.