The Future of the Dollar

There is an article in the latest issue of Newsweek that doubts the US Dollar will be able to remain bullish in 2006 for several reasons:

1.    US record trade deficit
2.    End of interest rate hikes in the US with the start of interest rate hike cycle in Eurozone and Japan
3.    China’s inability to continue its USD buying spree due to political reasons and possible Yuan revaluation
4.    US Manufacturers statement that the USD must decline by 12 percent due to rising energy prices
5.    Gulf Coast rebuilding costs
6.    Growing toll of the Iraq war

There’s a lot facing the dollar in 2006 but that’s also what "experts" thought at the start of 2005.

http://www.msnbc.msn.com/id/10513234/site/newsweek/ 

Popularity: 5%