dolmar said:

That funny considering the US Dollar is currently at 26 year low against Britsh pound currently. And in 1986 US Dollar was less than 1:1 to Britsh Pound and back in 1950 US Dollar was 1.27 to 1 Britsh Pound. So how you figure the value of the US Dollar has been going down?

And you claim about gold is a joke. In 1978 Gold was as high $1026 but in 1986 gold hit a low of $238 an oz. If you factored in for inflation and you bought gold back in 1978 then you would have paid over $2K an oz in todays dollars. Btw gold trades in sync with the US Dollar. When the dollar get stronger gold drops in price and when the dollars get weaker gold goes up in price. This is a fact.

If you look at France, Spain, Germany, even Japan most other countries at 1X or another have devalued there currencies by changing the exchanges rates or issuing new currency except the US Dollar. Inflation has nothing to do with devaluing a countries currancy both are independant of each other while both have the same net result.

Agentpt5 is not saying Gold is NOT subject to the markets like everything else. It is subject to mania and bubbles like other commodities, stocks, bonds, and other investment vehicles. What Agentpt5 is saying (if I may attempt to bridge the gap here) is that 1 oz of Gold in 1900 buys the same amount of goods and services as 1 oz of Gold today. In that respect, it has not devalued. The dollar, since 1913, has devalued by 95%. So, $1 in 1913 terms is only worth 5 cents today. That is a fact. So, yes, the dollar -- like every other fiat based currency -- is devalued. Now, have standards of living risen even as the dollar has devalued? Sure; but that is more due to advances in productivity than probably any other factor.

Any fiat-based currency can be devalued by simply increasing the money supply (inflation).

We should go return to a precious metal backed currency system and just devalue all the currency to compensate. Just my opinion. You could earn $10k/year instead of $100k/year, but your car could cost $300. It's all relative and while we're at it, ditch the penny. It'd help fight counterfeiting too, especially if we do coins only (using the precious metal).

kantscholar said: You could short the GLD--that's what some boys I know at Goldman Sachs have been doing for the past 6 months.

Please follow these morons. I love people to bet against me and short GLD.

Goldman, JPMorgan Stuck With Debt They Can't Sell to Investors

By Caroline Salas and Miles Weiss

July 17 (Bloomberg) -- Goldman Sachs Group Inc., JPMorgan Chase & Co. and the rest of Wall Street are stuck with at least $11 billion of loans and bonds they can't readily sell.

The banks have had to dig into their own pockets to finance parts of at least five leveraged buyouts over the past month because of the worst bear market in high-yield debt in more than two years, data compiled by Bloomberg show.

Bankers, who just a few months ago boasted that demand for high-yield assets was so great that they would have no problem raising debt for a $100 billion LBO, are now paying for their overconfidence. The cost of tying up their own capital may curb earnings and stem the flood of LBOs, which generated a record $8.4 billion in fees during the first half of 2007, according to Brad Hintz, the former chief financial officer at New York-based Lehman Brothers Holdings Inc.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aserXf4f8u2M&refer=home

*I* am brain dead lol...I've been a dollar bull for so long I forgot. Being 100% cash is a dollar bull play is it not? And hoping the US economy can stomach higher rates lol. I read recently there is strength through weakness...how appropriate.

I've been so alarmed and concerned recently about the falling dollar is ironical, not funny.

Furthermore, dolmar is right, the cooking of the books is not good. I am beginning to be doubtful that we'll ever receive what is rightfully due. On one hand saying no inflation keeps government payouts low and the market churning nicely, on the other hand, saying inflation expectation is on the high end enables the Feds to raise rates if they have to. Nice, they've successfully engineered playing both ends of the fiddle.

And also why, I am beginning to doubt whether higher interest rates are in the cards. The economy is bigger than only USA and the finance system much more complicated than I can ever understand that what is logical to happen may not happen. Also the Feds know that managing expectations and cooking the books are key...with those two things they can engineer the markets and the inevitable never happens. Sigh I give up.

Buy stock in US companies that earn a large chunk of their profits from overseas and report in USD. Examples include Caterpillar, McDonalds, etc.

Caution:

IF i am not mistaking if US dollar continues to fall down then it will hurt lot more to Japan, China & Korea. I think it will also bring their currency down. So do more research on this. Good luck

Hey Guys, i really love this topic because it has been hurting my pocket. So if we can talk more serious and also with more knowlege. ALl the analysts out their bring their analysis here in this topic and let us know what's short term future in 6 to 12 months. Should be buy indian currency for being indian or any other currency or gold etc?

What is causing US dollar fallinig down?
Is it in benifit of US to devalluate temporary so they can reduce their debit?
What will drive back US higher in future (Only higher interest rate becuase Oil prices doesn't seem to be coming down)

Reply with good points or other links or researches.

Tahnk you for everybody's time

All FW members this could be great money making investment if we follow right path and of course if it works that way. This is very volatile situation so be careful with investment. Problem is you can not jsut sit and not do any action.
Becasue average indian like me just lost 20 % of their liquid money compare to last year because of us dollar falling down.

Thank you

desiluvu said:Caution:

IF i am not mistaking if US dollar continues to fall down then it will hurt lot more to Japan, China & Korea. I think it will also bring their currency down. So do more research on this. Good luckBut isn't it all relative?

For example with Japan, the dollar is currently very strong compared to the yen. Should there be a reversal and the yen gains strength, the dollar will fall with respect. And what may cause this reversal? The carry trade is risk averse, so whenever the US stock market rocks, the yen carry trade wobbles and the yen gets stronger, and when the yen gets stronger, the yen carry trade wobbles further. However, while it may not be the end to the entire carry trade business, it will certainly cause concern for our economy and further the subprime contagion, which is why I believe the Feds/our government could have a hand in smoothing out the statistics it bears. I just think when the carry trade unwinds Japan will coincidentally emerge out of it's shell (eg. partnerships with American companies (GE) to lend the leadership it needs). I'm silently hoping for a reemergence of Japan's dominance.

Potlickerttu said:Too much back and forth in this thread......If you want to Bet on the strengthing just buy RDPIX (Rising U.S. Dollar ProFunds)

The question was not if they should go long on the dollar but how to do it.

Agreed, we've gotten a bit off track. To the OP, for a rising dollar you can look at Everbank's Dollar Bull CD or you can even invest in something as common as stocks/bonds. Bonds will benefit quite a bit if you think interest rates are going down (bond prices are inversely related to interest rates) and nothing seems to shake the stock market right now.

Let me bring this conversation back to earth. The OP actually asks a very simple question. How to benefit from a rising dollar.

The answer is also simple ... hold dollars, and dollar-denomiated assets and stocks of corporations doing business in the US.

Fact is...if you are an American, chances are you already are paid in dollars and more likely than not, you already have a bank account or other investments in dollars. Congratulations! You've doing what it takes to benefit from a rising dollar.

Yes, there are more "advanced" strategies that some have alluded to...OK if gambling/speculation is what you have in mind, but inappropriate if your goal is just to benefit generally from a rising dollar.

Also please ignore the "goldbugs" and would-be monetary theorists here. This isn't the Monetary Theory forum. I actually happen to agree with some of the conclusions these clowns have made --- but not for the reasons they make them.