August 2, 2011 Raising the Debt Ceiling in United States

[Parture]

Do you think the US Dollar Index will pop higher when the debt ceiling is raised? I think it will, because it seems to me it has dropped from 76.37 down to 73.41 based on fears of defaults by not raising the ceiling. Therefore, it should pop and go above 77 when they put in some temporary measure by Tuesday, August 2, 2011 at the latest. Congress men and women and Senators can't be that dumb to not strike a deal to raise the debt limit at least to hold us over for a couple months before another deal can be reached.

:watermelon:

[InTheMiddle]

Looks like this isn't working out too well.

[Parture]

It happened just as predicted. US Dollar Index went above 80 as a result.

[InTheMiddle]

That can't continue indefinitely though. Real inflation is growing rapidly, the deficit is exploding, and commodities are continuing upward. What do you think is likely to happen this next time around as we smack right into that ceiling again?

[Parture]

You are taking what I said for the short term ("couple of months") and extending it to the long-term when there is no reason for you to do that.

Everyone knows the US Dollar is falling into oblivion, but before it does it will have some amazing deceptive moves upward like now. I would not be surprised to see the US Dollar Index find a top between 85 and 95 before it heads down below 70 in 2013 or 2014.

[InTheMiddle]

OK, then we are in agreement. Sorry for the confusion. Unfortunately, there are quite a few people out there who believe the USD will somehow miraculously return to "glory" some day soon :D

[Parture]

I disagree, but I do believe the manipulation is afoot at least during this election year to get it as high as it can go.

[InTheMiddle]

Here we go again, right? :)