| Dear Subscriber, Investors, politicians and the media have had tunnel vision for the better part of the past five months. And it's been directed squarely on the United States. The world has been transfixed on the dollar. Experts have tirelessly surmised how the Fed's recent decision to launch another round of quantitative easing was reckless. And they've claimed this action will do irreparable damage to the buck — the world's primary reserve currency. That script reads a lot like one we've seen before ... In mid-2009, the global markets became very U.S. absorbed. The anti-dollar crowd was out in droves. And they were insistent that this was the end for the dollar. When they were asked for proof, they quickly pointed to the list of threatening emergency policies U.S. officials had rolled out, the rising American debt-load and the numerous attention grabbing headlines from leaders around the world ...  | | Back in 2009, even the UN wanted to replace the dollar as the world's reserve currency. | | China called for a new world reserve currency. Russia piled on, calling for a new "supranational" currency and recommending the BRIC countries begin trading in local currencies, abandoning dollar-based trading. But back then, here in Money and Markets, I warned you not to take the bait. I laid out the facts about: - The bigger problems residing in other spots of the world ...
- The vulnerabilities in Europe's banking system ...
- The threat that China's currency manipulation represented to the global economy ... and
- The role that the U.S. and the dollar played in the world — especially in times of such great crisis.
To be concise, on June 20, 2009, I said ... "Beware of the scare headlines — the dollar's demise is greatly exaggerated." | Internal Sponsorship | Only 2 days left to view The $3 Trillion Lie! | | We're so confident that the approach we're using could multiply our money, Martin Weiss invested $1 million of his own money in this portfolio and hired a hedge fund veteran to manage it for him. We'd hate to see you miss out on the profit potential we're grabbing right now as precious metals soar ... as Fed money printing dooms the dollar ... and as foreign stock markets continue to leave the S&P 500 in the dust. Turn up your computer speakers and click this link to view The $3 Trillion Lie and then join us in our Million-Dollar Rapid Growth Portfolio before all enrollment closes on Monday. | And as it turned out, the crowd that was so heavily leaning against the dollar and the outlook for the U.S. economy was reminded that there's a world beyond the borders of the United States. And the problems in other countries were just as big, if not bigger. A crisis in the euro zone ensued, and abruptly, capital from around the world wanted to own dollars again. And the euro started a seven-month, 22 percent collapse against the dollar. The currency that just months earlier was being hailed as the best candidate to supplant the dollar as a new primary world reserve currency, was in jeopardy of falling apart all together. Act II for the Dollar Bears Once again, the politicians are at work, trying to gain some political favor within their own countries and trying to leverage their way into more power on the global level, by taking verbal jabs at the U.S. policies and the dollar. While they've been disparaging the Fed's QE2 and claiming explicit weak dollar intent from the U.S., the dollar isn't behaving according to plan for such dollar-destruction pontifications. In fact, there's a not-so-subtle turn taking place in the currency markets. And a stronger dollar has been at the center of it! As I suggested in last week's column, seven key charts were making a case for a bounce in the dollar and a return of a longer-term dollar bull trend. And now, there are more reasons why this scenario looks even more likely ... While the attention has been on the U.S. and on another wave of quantitative easing, the threats in Europe have been quietly rising.  | | Insolvent Irish banks could reignite Europe's sovereign-debt crisis. | | Ireland's failing banks have become its government's problem. And the extent of damage on bank balance sheets now makes Ireland the most dangerously diseased country in the euro-zone economy. Interest rates in Ireland have soared to record levels against German rates. And the price of insurance against an Irish sovereign debt default has spiked to record levels. Like last time, the disease in one spot of the euro zone is quickly affecting market sentiment in the euro zone as a whole. You can see in the chart below, the sharp spike in the credit default swap market for insurance on euro-zone debt suggesting the set up for round #3 of a euro crisis. And following suit is the euro — perhaps in the early stages of another plunge. It has fallen nearly 5 percent against the dollar in just seven trading days. Perhaps again, the world is waking up to the problems outside the U.S. The financial markets are one environment where those in the minority typically come out on top — and those that follow the herd tend to get slaughtered. With that in mind, given the mass sentiment that leans against the dollar, there are plenty of good reasons to believe a sharp reversal is in order — if not already underway. Regards, Bryan P.S. This week on Money and Markets TV, three panels of experts broke down what's already been a momentous month in America ... the historic mid-term elections, the Federal Reserve's decision and the October jobs report have created a new political and economic landscape, and contributed to an atmosphere of optimism on Wall Street. If you missed Thursday night's episode or would like to see it again at your convenience — it's now available at www.weissmoneynetwork.com.
About Money and Markets For more information and archived issues, visit http://www.gliq.com/cgi-bin/click?weiss_mam+190301-4+MAM1903+computerdiy@yahoo.com Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Nilus Mattive, Claus Vogt, Ron Rowland, Michael Larson and Bryan Rich. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include Andrea Baumwald, John Burke, Marci Campbell, Amber Dakar, Maryellen Murphy, Jennifer Newman-Amos, Adam Shafer, Julie Trudeau, Jill Umiker, Leslie Underwood and Michelle Zausnig. Attention editors and publishers! Money and Markets issues can be republished. Republished issues MUST include attribution of the author(s) and the following short paragraph: This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com. From time to time, Money and Markets may have information from select third-party advertisers known as "external sponsorships." We cannot guarantee the accuracy of these ads. In addition, these ads do not necessarily express the viewpoints of Money and Markets or its editors. For more information, see our terms and conditions. View our Privacy Policy. Would you like to unsubscribe from our mailing list? To make sure you don't miss our urgent updates, add Weiss Research to your address book. Just follow these simple steps. | © 2010 by Weiss Research, Inc. All rights reserved. | 15430 Endeavour Drive, Jupiter, FL 33478 |
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