Prechter: The Dollar Is Going To Surge
Courtesy of Joe Weisenthal at Clusterstock
TechTicker: Ever the contrarian, Prechter cited the heavy bearish sentiment on the dollar when he made similar predictions here in August. Since then, the Dollar Index has made new lows but the dollar has shown intermittent signs of life; in addition, Nouriel Roubini, Martin Wolf and others have made similar forecasts about the potential for a dollar rally.
In the accompanying clip, Prechter also makes the seemingly counterintuitive argument that the dollar will rally because there’s so much debt, rather than being doomed because of it. If the economy turns sour again in 2010, as he predicts, Prechter says the dollar will benefit as more dollar-denominated IOUs get called by creditors seeking to shore up their own balance sheets, as was the case in 2008.
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