[mefistofeles]

One gauge of the severity of the financial crisis could be the strength of the dollar.

As the crisis has escalated I noticed the dollar crossed several critical thresholds. On the first week the Euro went from 1.38 to 1.43 dollars.

Now we are in the second week and after trading around 1.466 for a while it seems to trading in the 1.47 range.

In other words I am using the dollar Euro exchange ratio as a scorecard that helps me gauge the crisis. The stronger the Euro becomes the more accute the financial crisis and crisis of confidence in the dollar.

My theory is that as the crisis reaches the next "inflection point" the dollar will depreciate at an increasing rate.

Ironically this crisis is proving to be a real boom for the energy and commodities markets. As the dollar disintegrates the price of commodities will increase.

[Koyaanisqatsi]

Death of the Dollar

[dsula]

One gauge of the severity of the financial crisis could be the strength of the dollar.

The value of the dollar will stop sliding once the US trade gap closes. And at +$50b / month of negative trade there's a very long way to go. However it's just a matter of time till europe will also face this problem.

[gollum]

The dollar will continue to decline at an accelerating pace as it becomes clear the only thing the feds can do is print money. You can print money but you cant print wealth.

[sittinguy]

I'm REALLY waiting to see what happens to the dollar when the 700b get passed.