The Dollar Is Becoming Stronger Every Day, Here's Why



Dollar dominance. Global inflation. Forex trading.
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For the last year just about everyone has worried about inflation in the US economy and the cost of holding the dollar. However, time has shown that the dollar has actually held up quite a bit better than just about every other currency. This is a phenomenon called the Dollar Smile. Basically whatever happens in the economy the dollar tends to just get stronger. |

All of this insanity has led veteran forex traders to believe the dollar is the strongest bet in 25 years. That one simply should not bet against the dollar.

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  1. China doesn't have a bond market like the US. Any country in the world can get USD at any time by selling treasuries. This isn't true of any other currency so the Yuan replacing the dollar is not a reality any time soon.

  2. With USD losing 8% in buying power in the last year, calling it "strong" is crazy. I'd be more comfortable calling it "relatively strong". With inflation running wild across the globe, USD simply sucks less ATM.

  3. Things may be changing in the relatively near future. We now have the BRICS nations openly going after the USD's dominance, and it looks as though it's going to be quite a few more than the original BRICS countries joining forces. I think a lot of countries are very tired of the US playing King of the World. Maybe their currency will even be gold-backed.

    Now if only the OPEC Member Countries would announce they'll only be accepting Bitcoin as payment for oil, I'd be set for life, and not have to worry about all of this stuff. 😄

  4. There is one big problem… The dollar is not "strong" because of nothing the US government does, it is because it is "stable coin" of the world. China knows this and intends to change it… so, middle or long term, the US and the dollar can be f***, cause its power is not inside itself, it is about perception and use by other countries…

  5. The Titanic sank because everybody thought it couldn't, maybe the worst thing about the dollar and the US economy is too many people believing it's too big to fail. But at the of the day it is just another human construct, and what happen to human construct is when you rely on it the most is when it start to fail.

    Edit: Typos

  6. I wanted to buy the Pound when Brexit was announced and it tanked and again recently when it tanked again due to central banking issues but never got around to it, I wasn't aware that low volume trades were not really a thing in Forex. Leverage is far too risky for my blood, rather buy utilities and soak up those sweet sweet dividends instead. It was found recently that Utilities out performed the S&P over the last 30 years by a decent margin, which I found intriguing. Thanks for the info in this video though.

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