The U.S. dollar is weak, and the U.S. administration has no choice but to continue to allow the currency to weaken.
As we have pointed out in these pages many times, the U.S. has to finance huge budget deficits for this year and for the foreseeable future. This must be done by selling bonds. Primarily, the sales will be made to non-U.S. buyers. The U.S. has two options if it wants to sell trillions of dollars in bonds to foreigners:
1. Raise interest rates substantially. 2. Let the dollar decline and make U.S. bonds cheaper to foreigners who hold . . .
Continue Reading: THE NUMBER ONE TREND – A WEAK DOLLAR
