Why do you suspect the dollar is rising even though the economy is deteriorating?

thinker70 answered 10 months ago …

EXCELlENT QUESTION! The simple answer is that the U.S. dollar for now still remains the worlds reserve currency and therefore is perceived as SAFER than any alternative fiat currency. This EFFECT is a TEMPORARY phenomenon that has occured beause of hedge fund, mutual fund etc. devleveraging, including massive amounts of margin calls, so that the shrinkage in the stock market shows up as capital returned too DOLLARS, giving the FALSE appearance of strength!

Many people will be fooled by the establishment (banks and politicians) giving the "all clear" signal that everything is under control, (through their manipulations) and things are returning to normal, which you should interpret as more ripoffs, more corporate and bank failures, with only those with the "right connections" getting bailed out with more central bank created DEBT that only "buys time" rather than actually SOLVING the problem.

It is all "window dressing" and there will be more SHOCKS to the system coming as commercial real estate implodes, consumer credit card debt defaults etc. we are FAR from out of the woods yet, lots more cleansing of a corrupted system necessary!! When the euphoria of Barack Obama's ellection fades and REALITY sinks in, that the problems are beyond simple fixes and more debt creation then the dollar will crater and REAL MONEY, gold and silver will soar to unprecedented levels.