Home » The Wave » Recent Articles:

Inflation, deflation and the Eurodollar direction

October 1, 2009 The Wave No Comments

By David Petrunic

Euro Dollar

Euro Dollar

One of the biggest debates between traders and economists is whether we will be seeing inflation or deflation in the future.  While there is little debate over whether we will see deflation in assets, as both sides agree assets will continue to decline; there is a healthy debate over whether we will see deflation or inflation in our currencies.

Since all the major currencies are fiat currencies where a currency is not backed by anything other than the good faith of the country; there is nothing preventing the country from printing their currency into oblivion.  … Continue Reading

Share or bookmark
  • Print
  • email
  • PDF
  • Digg
  • Facebook
  • MySpace
  • Twitter
  • del.icio.us
  • Mixx
  • LinkedIn
  • Google Bookmarks
  • Reddit

The US Dollar

September 2, 2009 The Wave No Comments

By David Petrunic

David Petrunic

David Petrunic
Senior Wave Analyst

Last fall in 2008, we had our crisis where deflation had become a threat because many of the big banks had halted their money flow as they were not lending.  As the Fed worked to bail out the banks, they were intentionally inflating the money supply by printing more dollars.  This put pressure on the dollar value relative to the price of other currencies like the Euro and the Pound, which have all been rising higher ever since.

A year later, the dollar’s depreciating trend has become the common perspective as most people don’t see any other alternative for the dollar. The trillion dollar bailout is an easy target to blame the descent lower in dollar value.  While the bailout was the solution to save the banking system,  it appeared to be a shot to heart to the value of the dollar, as radically increasing the supply of dollars naturally decreases the dollar’s value.  Ever since the bailout took root, we have seen the dollar fall and the economy improve as our stock markets have all been recovering. … Continue Reading

Share or bookmark
  • Print
  • email
  • PDF
  • Digg
  • Facebook
  • MySpace
  • Twitter
  • del.icio.us
  • Mixx
  • LinkedIn
  • Google Bookmarks
  • Reddit