Q: Dear Van, I wish to thank you for your most enjoyable commentary on market types. I found the email to be very informative. I am new to currency trading and currently studying as much as I can so that I can develop an edge towards the market before I engage with real time trading.
My interest in currencies began after reading a book called Hot Commodities by Jim Rogers. I recently heard him say on Bloomberg TV that the US dollar is a “flawed currency.”
I have a lot of respect for Mr. Rogers, yet found myself scratching my head at this comment. I would be extremely grateful if you, or someone in your team could be kind enough to clarify this for me.
Best Regards, James
A: I totally understand Roger’s comment. What I don’t understand is how the dollar continues as a world reserve currency.
1) The US is a bankrupt country and there is a report at the St. Louis Federal Reserve site which state this.
2) Our debt is parabolic with no end in sight.
3) Only two things keep the US alive: a. Other countries are willing to buy our debt. b. The US Dollar is still the world’s reserve currency.
Keep in mind that my comments on the dollar are long term…as are Jimmy Rogers’. This probably has no impact on short term currency trading strategies.
Van
