NEW YORK (MarketWatch) — It’s probably not the dollar’s unrelenting march higher that is unsettling U.S. stock investors, but it might be the speed of the rally.
“I think what people are concerned about is the pace of the dollar strength,” Douglas Borthwick, managing director at Chapdelaine Foreign Exchange, in a phone interview, on Tuesday.
“Countries can always adapt to currencies strengthening or weakening, but certainly as the dollar strengthens very, very quickly it leaves very little chance for others to adapt,” he said. Continue reading
The next crisis will be the currency pegs against the dollar. Here we have pegs from Hong Kong to the Middle East. We will have the same problem for as the dollar is driven higher, thanks to the implosion in the Euroland, these nations will import DEFLATION from a rising dollar. This will break their backs and force pegs to collapse around the world. Keep in mind that this will unfold probably after 2015.75 and help to spiral the world economy into the worst depression in centuries. Start preparing for a rainy day. Continue reading