Will the dollar continue to get stronger or will we see its value decline again due to the trade deficit?
Best Answer
130 points
HeyJuan answered one year ago …
The American $ (peso) is headed for the toilet. Think about it. Deeper and deeper into debt.
Billions to bail out mortgage companies. Billions for disaster relef.
100's of billions for Iraq and Afghanistan.
Nothing much to export. Most consumer goods imported.
Can't raise rates because of the economy.
Huge tax increases are needed to pay all this. Or does the government just borrow and/or print more money?
The US dollar is greatly overvalued.
Answers
381 points
SirCrashton answered one year ago …
I think the dollar will drop once the inflationary effect of the government bailouts kick in. Where is the enormous amount of money required to keep the financial markets liquid going to come from other than the government's printing presses?
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3963 points
MNSL answered one year ago …
US dollar is going to go up next in the 12 monhts and beyond.
Even top commodity investors are bullish on the Dollar now.
Factors to watch:
Falling commodity prices
Weaker europeann economy
Weaker Japanese economy
Weaker Australian Economy
Slower growth in China
