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Source: Investment Strategy Group, Federal Reserve

Note: This material represents the views of the Investment Strategy Group of the Investment Management Division of Goldman Sachs and is not a product of the Goldman
Sachs Global Investment Research Department.

Category: Currency, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

7 Responses to “Fears Over US Dollar Resurface Every 10-15 Years”

  1. KidDynamite says:

    and eventually the fears turn out to be warranted! it’s clear to me that we’re closer to that point than we’ve ever been

  2. Fredex says:

    No, we haven’t been “here” before. The current here is lower than any other.

  3. Never before has the world been saturated with dollars. The China sink is full. That being said, as long as the rubes are foolish enough to continue taking pieces of ever increasing amounts of worthless paper, the confidence game will continue

  4. Brian G says:

    I did however, notice the continually lower lows in the dollar. I do also appreciate the historical perspective. This time it need not be different.

  5. ben22 says:

    “Never before has the world been saturated with dollars”

    you mean credit correct?

    either that or all the $100 bills that are held elsewhere.

    Huge dollar bull here

  6. Gatsby says:

    While the historical perspective is useful, comparing the current situation to the past is not entirely valid. Perhaps GS should have included a chart of the historic money supply, or US Governments debt, but that would have made it glaringly obvious this time is different.

    Also I like to involke the Goldman Sachs doctorine: If it’s good for GS it’s bad for society. If GS says “look this way”, then it is in your best interest to look in the exact opposite direction. If GS is telling the public not to worry about the dollar then…

    We already know what they say in public and what they do in provate are not perfectly aligned.

  7. DL says:

    I’m actually not all that bearish on the dollar versus currencies of the other G-7 countries. But if one
    considers the rapidly growing economies in Asia and Latin America, and tries to project forward 10+ years into the future, it’s not hard to imagine a long term decline in the status of (and value of) the US dollar.

    Given the high levels of debt in this country, and the aging population, it’s difficult to imagine the U.S. sustaining a high level of economic growth.