Currencies

For more than a year now, commodity prices have been under pressure from the strong U.S. dollar and slowing global demand. This has made a huge dent in the balance sheet of many net exporters of resources, in turn weakening their currencies. What most people don’t realize, however, is just how closely some currencies track certain commodities. Below are five world currencies that have been impacted by lower commodity prices.

The yuan will be added to the IMF’s basket of currencies used to value the SDR in October 2016, with a weighting on 10.92%, which effectively anoints the yuan (also called the renminbi) as a major reserve currency. What are the long-term implications of this? Read on.

Virtually everyone has become convinced that the dollar is going to 110, 120 or even 160. Folks when everyone is thinking the same thing … then no one is thinking. Here’s the thing. Almost no one is prepared for the dollar to drop. Everyone is convinced the dollar is going higher, and everyone is positioned long. Everyone is on the same side of the boat. When that happens invariably the boat tips over so here’s what I think is going to happen.

The next time you spend your cash, take a moment to reflect on the history of the bill or coin in your hand as depicted in today’s infographic illustrating 33 fascinating facts about U.S. currency (notes and coins).

Where will the dollar go from here? My answer: Though currency market volatility is likely to continue, I still see a stronger dollar over the longer term. Here's why:

The Bank of Canada has cut its overnight rate for the second time in the last six months - to 0.5% - and the Canadian dollar has reacted as expected, [indeed, as intended,] putting the Canadian dollar at a six-year low in terms of dollars (-10.2%) and pound sterling (-10.4%). So why the rate cuts and competitive devaluation?

It takes some time for new innovations to develop the infrastructure to reach their hyped potential [but] there is ample evidence [seen HERE] that shows that cryptocurrencies and Bitcoin are along that path.

A currency war is a battle, supposedly an economic policy to cheapen a country's currency compared to that of others, to promote exports but the real reason, the one that’s less talked about, is that countries actually want to import inflation - a way of creating monetary ease and importing inflation. Let me explain.

The reason for China's massive gold accumulation is to destroy its enemies by attacking their economic base & that is exactly what China is doing to the USA.

It has been put forth that the U.S. dollar will soon lose its position as the world's reserve currency, and that when that happens, the world will fall into a deep depression. Is such an event really likely to unfold? Would such an event be really something to fear? How would/should we prepare for such a presumed collapse?