US Dollar

The US dollar is the reserve currency of the world and has been ever since ever since US President Richard Nixon cut the US dollar’s link to gold in 1971.

But there are many analysts in the world of finance who think the greenback’s days are numbered. That’s due to unprecedented money printing, large US trade deficits and the huge, unfunded liabilities of the US government.

Up to date news on the US Dollar

Terribly flawed but too big to ignore, the value of the US dollar is a lynchpin of the global economy. Find out why financial markets are growing more unstable as the US Fed debases the currency.

No matter where you invest or even where you live, the future and direction of the US dollar is a question every investor must answer.

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The Golden Game Changer
Earlier this week, the mainstream financial press reported dutifully on the 40th anniversary of Richard Milhous Nixon’s decision to end the US dollar’s convertibility to gold. It was a timely story. Not only for the anniversary.
If You Build It, Will They Come?
A stronger dollar represents an increase in Australia’s international purchasing power. The flip side is that other nations’ purchasing power is diminished when it comes to buying our goods and services. As a result, we suffer from weaker demand.
Leading Indicator Says…
It's been a while since we've heard from the ECRI, or, if you're not up with economic jargon, the Economic Cycle Research Institute. These guys deal with leading indicators and nothing but leading indicators. Last year, the ECRI leading weekly index made the headlines on a number of occasions.
Fatal Error or Fatal Conceit?
To me the gold price takes the form of a very uncomplicated formula, and all you have to do is divide one by ‘n.’ And ‘n’, I’m glad you ask, ‘n’ is the world’s trust in the institution of paper money and in the capacity of people like Ben Bernanke to manage it. So the smaller ‘n’, the bigger the price. One divided by a receding number is the definition of a bull market.
Gold Price Management 101
Yesterday we asked whether inflation or deflation would result from Japan hauling their capital back home. Of course we don't really know the answer, but we'll have a crack at guessing some scenarios in a moment.
High Tide for Liquidity
Yesterday we discussed the prospect of the US dollar no longer benefiting from ‘safe-haven’ inflows in times of turmoil. Soon after we read that 78-year-old US hedge fund manager Julian Robertson, who runs the Tiger Funds, wasn’t too impressed with the greenback either.
What’s King Dollar’s Problem?
One of the big mysteries surrounding the latest turmoil in the Middle East is why the US dollar hasn’t benefitted. What happened to the ‘flight to safety trade?’
The Hyperinflationary End Game
We take up today’s Daily Reckoning where Dan left off yesterday… That is, how does it all end? In massive hyperinflation? Or massive deflation? Before we attempt an answer, here’s another question to ponder: Does it have to be one or the other? Or, more accurately, doesn’t one lead to the other? If so, the question is more about timing the change in direction of monetary flows rather than betting outright on the big H or big D.
The Gold Bull Market is Alive and Well
Betting that the gold bull market is over is akin to betting on the wisdom of governments. I've happily taken the other side of that bet and following the recent sell-off, have just advised my subscribers to buy up a number of attractively priced gold companies. Investors with a little patience should do very well.
The Triffin Dilemma
So the Triffin Dilemma is beginning to rear its head again. The US domestic political preference is for a weaker dollar to stimulate exports and create employment. But the international situation, being market driven, is more powerful...