Betting Against the Dollar

 We don't know when but we have been blogging for over a decade that it WILL happen.

Some day, maybe soon, the USA will mess up the US Dollar by printing too many of them.  

Some day, maybe soon, the US Dollar will NOT be the world's only Reserve Currency.

Some day, maybe soon, the world will use a digital currency that will replace the US Dollar.

Remember that USA doesn't appear in any biblical prophecy.  We don't seem to be around when Russia, Iran and Turkey threaten Israel with destruction.  We hope the reason for this is because the rapture happened at the disappearance of millions of Americans crushed America so we instantly lost our role as super power.  But we can't know this for sure. 

So check out this article from Yahoo.

Speculative traders are ending the year doubling down on their bets against the dollar.

Net short non-commercial positions in futures linked to the ICE U.S. Dollar Index have surged to the most since March 2011, according to the latest Commodity Futures Trading Commission data. The gauge of the U.S. currency has fallen over 6% this year as investors turned against the greenback amid unprecedented monetary easing from the Federal Reserve and a move away from haven assets.

“Hedge funds are spoilt for choice when looking for reasons to be short the dollar,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. “We have a Fed that is committed to a paradigm shift in its policy that materially lowers the risk of policy normalization, and a rapidly widening twin deficit makes it easier for short dollar bets.”

A combination of negative U.S. real yields, extended valuations across American assets and a current account deficit that requires dollar depreciation to finance will likely weigh on the currency into next year, strategists at Goldman Sachs Asset Management wrote in a recent note.

The Bloomberg Dollar Spot Index was down 0.3% as of 6:55 a.m. in New York on Tuesday. Ten-year Treasury yields rose two basis points to 0.94%.

“We see depreciation in the dollar continuing into 2021,” the Goldman team said. “Liquidity dynamics and virus news flow may influence the timing of dollar weakness, but not necessarily the medium-term downtrend.”

Here; https://finance.yahoo.com/news/bearish-dollar-bets-near-demcade-015118029.htl 

And please remember what was happening in 2011, the last time that betting against the dollar was this high.  The Great Recession was in full bloom and we were printing money faster than we could shovel it out the door.  I thought it very possible 10 years ago that we could shoot ourselves in the foot by devaluing our currency so fast.  But nobody had any idea that the FED was going to lower interest rates to zero to goose the economy and raise the stock market.  But now that rates are at zero, what tools does that FED have left to keep the dollar strong?

One day God will say, "Enough of America!" and all the kings horses and all the kings men will NOT be able to keep USA upright.  What a crash it will be!