Friday, November 5, 2010

The USD is toast.

The dollar is drastically overvalued for two big reasons.

1) China must buy as many dollar-denominated assets as the market requires to keep its mercantalism underway.

2) The "full faith and credit of the US government" still counts to markets as risk-free money, and there's not much else perceived to be.

Both of these will give way.

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