U.S. Dollar

When news first broke from the Federal Reserve that it would slow down the pace of its quantitative easing program, the consensus was that the U.S. dollar would start to rise in value as the Fed would be printing fewer new dollars and actually eliminating all new paper…

The rise in gold bullion prices since the beginning of the year has been very hard to digest for those who said the precious metal is useless. To me, this rise in gold bullion prices isn’t surprising at all. And the small pullback in the price of gold…

“Michael, you don’t know what you are talking about.” That’s pretty much what I was told back in 2005 and 2006 when I was warning extensively that the U.S. housing market would collapse. When a boom in any form of investment is going on, and millions of people…

Google Inc. (NASDAQ/GOOG) is showing why I think it's one of the top technology growth plays at this time…and going forward. No longer simply a web site and online advertising marketing company, Google has been spreading its wings into software and hardware, as it moves to the next…

Some of the biggest names in investing publicly stated months ago that the U.S. dollar would fall hard against other world currencies. Big investors, like Warren Buffett, have actually made investment bets the dollar would fall. Why hasn't it happened? Patience, my dear reader, patience. The financial markets…

“The supreme art of war is to subdue the enemy without fighting.” The author of this quotation is Sun Tzu (544–496 BCE), a Chinese general and the author of The Art of War, the classic manual on warfare tactics. Eons ago, I had a summer job in golf…

As currency devaluation is becoming a new goal for countries, central banks in the global economy are losing trust in each other. The notion followed by central banks is that if they devalue their currencies, the prices of their goods become competitive in the global economy. Unfortunately, this…

How severe is the municipal budget deficit situation? In some cases, it is getting to the point of no return. And it’s not just Californian cities that are in trouble; other municipalities in the U.S. economy are struggling to keep up as well. For instance, San Diego could…

As the U.S. dollar continues its slump, central banks around the world are questioning the value of their own currencies. The reasons for this are very simple. As the greenback declines in value, other countries are experiencing higher American prices for their exports, stunting demand. To fight the…

In 2010, the average American family was no wealthier than they were in early 1990s—meaning the financial crisis of 2008 erased two decades of wealth (source: New York Times, June 11, 2012). The Federal Reserve released this very sobering but not surprising news this week. The average American…

The U.S. dollar has reigned supreme as the reserve currency of the world for decades. This reserve currency status appears to be ending, albeit at a slow pace. Shifts in reserve currency don’t happen overnight, as they become entrenched in the financial system. The U.S. dollar took over…

Prior to the financial crisis, the Federal Reserve bought minuscule amounts of U.S. government debt. In 2011, the Federal Reserve bought 61% of all net U.S. Treasuries issued (source: Wall Street Journal, Mar. 27, 2012). Reread that again, dear reader, to absorb its full meaning—61% of all issued…

Iceland wants to adopt the dollar as its reserve currency—but it’s not the same dollar you are thinking. Iceland suffered through a terrible financial crisis in 2008 that forced the country to make difficult decisions to get itself out of an economic mess. Thankfully, the small country has…

According to an independent annual audit of the Federal Housing Administration (FHA), its cash reserves have fallen so low that there is a 50% change the FHA will need a government (or should I say taxpayer) bailout in 2012. Mortgage payments on about 600,000 home loans insured by…

I want to stay on the topic of third-quarter corporate earnings for the simple reason that it is earnings season and the stock market is reacting positively to the numbers. Stock market investors are still reticent to go long the market in a meaningful manner, because of the…

The stock market is showing real strength at this time. A lot of stocks that were hit hard during the market’s recent correction are fighting back and making good progress in their share prices. Consider Caterpillar Inc. (NYSE/CAT), which is an important benchmark stock to follow. The company’s…

Forty years ago today, U.S. President Richard Nixon appeared on television to tell the world that the U.S.was severing the relationship between gold bullion and the U.S. dollar. Back in 1944, in a historic agreement reached in Bretton Woods, New Hampshire, the U.S. government agreed to redeem U.S.…

As I read the financial newspapers and the popular Internet sites this morning, I realize that if there is one thing I hope I achieve in my own daily writings, it is to make my readers wary, almost suspicious of what the media is telling them. Here’s what…