This week so far, the dollar has fallen 4% against the British pound reaching a new low for 2009, 3% against the euro and Japanese yen, and also against the Canadian dollar. With major price levels being broken, many banks are reevaluating year end predictions for the euro vs. the dollar to reach $1.50 or higher. Is this going to be the new trend of 2009, dollar's death spiral? Here's some reasons why many say its time to chuck the buck.
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Are Investors in the US and Abroad Losing Faith in the Dollar?
By Mark Trumbull
Are US debtors, from the federal government to the cash-strapped state of California, going to default? Will the Federal Reserve resort to inflation - debasing the value of dollar assets - in its efforts to lift a debt-bound economy back to growth?
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US dollar at 2009 low, bonds down with supply ahead:
The U.S. dollar dropped to its lowest level this year and government bonds fell further on Friday as concerns mounted about rising U.S. debt levels after investors questioned the strength of its AAA credit rating.
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"The Sinking Dollar", May 15, 2009, Commentary No. 257 by Immanuel Wallerstein
...All the main actors are hoping there can be a soft landing, an orderly transition away from the U.S. dollar. No one wants to precipitate a free fall, because no one is sure to come out ahead if that happened. But if the U.S. stimulus turns out to be the last of the bubbles, the dollar could very suddenly deflate in a most chaotic fashion. The way you say "stampede" in French is "sauve-qui-peut," which translates literally as "let him save himself who can."...
