Jobs Report and the Dollar
Peter Schiff
Posted Aug 9, 2010
Today's [Friday's]
disappointing payroll report reveals
that the U.S. economy has failed to respond to the massive fiscal
and monetary stimuli that have flooded the nation over the past
two years. Not only is the news bad for job seekers and political
incumbents, but it's also a strong signal for traders to flee
the U.S. dollar. The malaise in the U.S., where stimulus is still
the word of the day, stands in contrast to active recoveries
in Europe and Asia, where governments are actively removing stimulus.
As a result, we are now headed for the eighth consecutive
weekly decline in the Dollar Index.
 Inspired by comments this week from
St. Louis Fed President James Bullard, it is now widely accepted
that the continued domestic weakness will cause the Fed to significantly
expand stimulus efforts through so called "quantitative
easing." The printing of trillions of dollars to purchase
of government debt will put serious pressure on the value of
the dollar.
With the monetary cards now so clearly on the table, currency
traders have placed their bets, and the smart money is quickly
running away from the Greenback. The falling dollar is reigniting
the commodities market. On Monday oil busted through the $80
price ceiling that had held since May. Any additional breaks
to the upside may be considered one of the unforeseen "negative
shocks" of which Fed President Bullard warns. If the government
fears the "recovery" will be further impinged by higher
energy prices then look for "quantitative easing" to
become both the driving force of our economic policy and poison
that finally kills the dollar.
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Aug 6, 2010
Peter Schiff
C.E.O. and Chief Global Strategist
Euro Pacific Capital, Inc.
1 800-727-7922
email: pschiff@europac.net
website: www.europac.net
Archives
 Mr. Schiff is one of
the few non-biased investment advisors (not committed solely to
the short side of the market) to have correctly called the current
bear market before it began and to have positioned his clients
accordingly. As a result of his accurate forecasts on the U.S.
stock market, commodities, gold and the dollar, he is becoming
increasingly more renowned. He has been quoted in many of the
nation's leading newspapers, including The Wall Street Journal,
Barron's, Investor's Business Daily, The Financial Times, The
New York Times, The Los Angeles Times, The Washington Post, The
Chicago Tribune, The Dallas Morning News, The Miami Herald, The
San Francisco Chronicle, The Atlanta Journal-Constitution, The
Arizona Republic, The Philadelphia Inquirer, and the Christian
Science Monitor, and has appeared on CNBC, CNNfn., and Bloomberg.
In addition, his views are frequently quoted locally in the Orange
County Register.
Mr. Schiff began his investment career as a financial consultant
with Shearson Lehman Brothers, after having earned a degree in
finance and accounting from U.C. Berkley in 1987. A financial
professional for seventeen years he joined Euro Pacific
in 1996 and has served as its President since January 2000. An
expert on money, economic theory, and international investing,
he is a highly recommended broker by many of the nation's financial
newsletters and advisory services.
321gold Ltd
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