"why our dollar is getting whacked"

[donsu]

http://www.atimes.com/

DAILY FOREX COMMENTARY

Our short answer to why the dollar is getting whacked: the market believes the yield differential favoring the buck has peaked. And if the yield differential has peaked, then the US will have trouble attracting the billions and billions it needs to fund its deficit. - Jack Crooks

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how stark is that

[kenny blankenship]

1. It's not the dollar, it's the American Peso

or if you prefer, Bush Family Fundollars, good anywhere throughout the casino, albeit for less and less as time goes by.

[enid602]

2. . . . your dollar, perhaps. . .

. . . no longer mine. I sold most of my dollar assets on 11/5/04; part of my plan to 'Bushproof' my portfolio.

[Nederland]

3. Then you missed out

...on a significant gain over the past year and a half. Perhaps in the long run it will work out for you, but right now you've got to see an 25% increase in your portfolio just to break even with where you would have been if you'd stayed in the US market.

[enid602]

4. dollar

I don't think so. During this time, the dollar has gone down (from $1.38 to the Euro to $1.22 (as of this AM)); my non-dollar portfolio would normally have depreciated by 11.6%, but as they are bond mutual funds, I think the net loss was perhaps 2% or so, after calculating the interest they pay. Nothing too serious. Because I keep 45% in dollar mutual funds, 45% in non-dollar mutual funds and 10% in a rather lucrative long-term CD, I'm hoping to minimize risk due to currency swings.

You're right; the dollar has done well over the past 18 months, but more due to things happening outside the US rather than any concrete effort on our government's part to manage the currency and control trade and spending deficits. That lack of governmental concern about the dollar's health is what caused me to want divest myself of much of my holdings.

PS: I really think the dollar's going into the crapper soon. Gunboat diplomacy can only save it for so long without a concerted governmental attempt to get spending and trade in control.