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(Watch the Free Video Version of Today’s Blog)Evidently, Obama has more extensive resume than I previously thought. Heck, I just thought he was the President. Oh no! He doesn’t stop there.If fact, he’s one of the few Presidents in our nation’s history that is comfortable being a stock analyst. (He recently said stocks were a good buy back on March 3rd).But now his resume expands even further. That’s right! He’s not just President and “Stock Analyst” but he’s also a Currency Analyst too now.(Yeah, I guess CNBC just needs to give him his own show. In fact, we don’t even need economists anymore now that we’ve got Obama. We can save lots of money there by firing all of the economists that the government hires!)In last night’s address, Obama said that the “dollar is extraordinarily strong because investors are confident in the ability of the
U.S. to lead a worldwide recovery”…and he went on to reject calls for a global currency.This latter comment was directed at China. You’ll remember that Geithner said that“Obama thinks China is a currency manipulator” (referring to their yuan)….that was Round 1of Obama vs. China. Now we’re in Round 2.China’s calling for a “super reserve currency” as the Fed and Treasury stack on trillions of dollars in U.S. debt and prepare to buy $300 billion of long term U.S. treasuries, thus driving the yields down artificially low.Well, since China sees that we’re driving down the yield on the instrument that they hold the most of, and they see us stacking on debt and wonder if we have the ability to honor our obligations…can you blame them for considering the thought of “wanting another currency” that isn’t laden with debt as the “world’s reserve currency”?Don’t get me wrong…I’m a red blooded American and love the fact that we hold the spot in the world to where we are the world’s reserve currency. However, the latest moves from the Fed and Treasury are bent on debasing our currency and not strengthening it.So it’s a pathetic thing when Obama says our dollar is strong and gives that lame excuse of a reason when he knows that at the same time, the Fed and Treasury are about to make an “all out assault” on the dollar in order to artificially prop up stocks.But don’t just take my word for it. You see, he knows most Americans never look at a chart of the dollar. However, I’ve got one for you to look at below.
Am I Missing Something Here or Does this Look Like it’s weakening?!? (Click on the chart to enlarge it.)
Hmmmm….Upon looking at the chart above, I think you can see why
China is worried and why Obama isn’t as good of a currency analyst as he thinks he is.I see uptrend line after uptrend line broken (blue lines) and lower highs which shows less conviction in buying and more conviction in selling the dollar at this point. Amazingly, he’s probably “spouted off” just in time for a top to form!Many Obama should stick to his “day job” since it seems like it should keep him busy enough.——————————————————————————-(Chance to Win a Free Currency Investing Coursebyemailing me Your Answer. 3 Names will be Randomly Picked from the Pool of Names. So here’s your question: When do you think the U.S. economy will recover? A) 3 months B) 6 months C) 1 year D) much longer than 1 year)——————————————————————————-China may not get its wishes, but their comments certainly put “another dent” in the dollar!While I don’t think that China will get their wish for a new global reserve currency, I do see where they are coming from and feel their pain.Unfortunately, our country makes such bad decisions at the government level, that there will probably come a day where we “go the way of Rome”. It is possible that we may see us lose the “world’s reserve currency” status in our lifetime.A country can never prosper long term by debasing its currency. And if you look at a 30 year chart of the dollar, you can only come to the conclusion that our government is bent on devaluing the dollar long term. This will only drive up inflation for “
Main Street
” and eventually cause a lack of confidence in all of the foreigners that we are dependent upon to buy our debt (Treasuries).Once that implodes, we’re in big trouble! I only hope that comes later rather than sooner!Learn about currencies through our Currency Course, so that you don’t have to trust Presidents, Fed Chairmen, Treasury Secretaries or any other economist/analyst out there.Find out for yourself how they move and what moves them.Learn more about currencies, here through our $99 online course.Get your questions answered from LIVE instructors, 24 hours a day – each weekday…and if you don’t feel you got what you came for andif you aren’t satisfied, we have a money back guarantee.This way you have nothing to lose. So I’d encourage you to get started today. You’ll be up and running in this market in just 8-10 days!
