The U.S. Dollar, the Market, and the Day of Reckoning

The U.S. Dollar, the Market, and the Day of Reckoning

Posted by Bill Anderson at May 21, 2009 06:44 AM

Despite all of the rhetoric we hear from mainstream economists and our government masters, the unprecedented printing of U.S. Dollars is taking its toll:

The U.S. dollar's day of reckoning may be inching closer as its status as a safe-haven currency fades with every uptick in stocks and commodities and its potential risks - debt and inflation - are brought under a harsher spotlight.

Ashraf Laidi, chief market strategist at CMC Markets, said Wednesday a "serious case of dollar damage" was underway.

"We long warned about the day of reckoning for the dollar emerging at the next economic recovery," Mr. Laidi said in a note.

Not that the Dollar was any great thing before Greenspan and Bernanke gave us their tag-team effort to utterly destroy it, the markets are speaking about our doomed currency and speaking loudly. The response from Washington? "Move along, people, there's nothing to see here...."