Not wanting to officially abandon the non-existent “strong dollar policy,” Treasury
Secretary Snow attempted to save face by offering a definition of the phantom
policy, something no previous Secretary had done. After suggesting that the
dollar’s recent collapse had only been “modest” he defined the “strong
dollar policy” as not having anything to do with a particular exchange
rate, but rather to maintaining public confidence and cracking down on counterfeiters.
As I have said before, if you’re being run out of town, its best to run to
the front of the crowd and make like you’re leading a parade.
Such ridiculous assertions by Snow should convince any remaining doubters
that the “strong dollar policy” was never anything more than self
serving rhetoric. In early January, just after the Euro had broken though par
against the dollar, I appeared on CNNFN’s “Market Call,” and predicted
that with in the next 3-6 months the euro would rise to between 1.15 and 1.20
against the dollar and I asserted that no turn of events would cause me to
alter this forecast. Lisa Finstorm, the often quoted currency analysis form
Solomon Smith Barney, who appeared on the broadcast with me, took the opposite
pint of view, and stated that the dollar’s fall had been overdone, and predicted
a that the euro would fall back to the.95 level against the dollar. I wonder
if Solomon Smith Barney gave the same lousy advise to its clients that it gave
to the public?
Also in early January, after several years of shifting my clients into non-U.S.
dollar denominated assets, I mailed them a special letter advising them to
sell any remaining U.S. dollar assets ASAP, warning that “”the risks
have never been greater in owning U.S. dollars.” At that time, I recommended
safe, high yielding securities denominated in New Zealand and Australian dollars,
euro’s and Swiss francs.
Anyone wishing to discuss the dollar’s past decline, its coming collapse,
and the ramifications for the U.S. economy and U.S. financial markets, with
some one who not only predicted it, but put his own and his clients money where
his month was, can contact me at 800-727-7922.