Any trader will tell you the trend is your friend, and the overwhelming direction for the US dollar for the last 220 years has been down.
Our first Treasury Secretary, Alexander Hamilton, found himself constantly embroiled in scandals. Take a ten dollar bill out of your wallet and you’re looking at a world class swordsman of the first order. When he wasn’t fighting scandalous accusations in the press and the courts, he spent much of his six years in office orchestrating a rescue of our new currency, the US dollar.
Winning the Revolutionary War bankrupted the young United States, draining it of resources and leaving it with huge debts. Hamilton settled many of these by giving creditors notes exchangeable for then worthless Indian land west of the Appalachians. As soon as the ink was dry on these promissory notes, they traded in the secondary market for as low as 25% of face value, beginning a centuries long government tradition of stiffing its lenders, a practice that continues to this day. My unfortunate ancestors took him up on his offer, the end result being that I am now writing this letter to you from California—and am part Indian.
It all ended in tears for Hamilton, who, misjudging former Vice President Aaron Burr’s intentions in a New Jersey duel, ended up with a bullet in his back that severed his spinal cord. Cheney, eat your heart out.
Since Bloomberg machines weren’t around in 1790, we have to rely on alternative valuation measures for the dollar then, like purchasing power parity, and the value of goods priced in gold. A chart of this data shows an undeniable permanent downtrend, which greatly accelerates after 1933 when FDR banned private ownership of gold and devalued the dollar.
Today, going short the currency of the world’s largest borrower, running the greatest trade and current account deficits in history, with a diminishing long term growth rate is a no brainer. But once it became every hedge fund trader’s free lunch, and positions became so lopsided against the buck, a reversal was inevitable. We seem to be solidly in one of those periodic corrections, which began with the big “RISK OFF” trade on April 29, and could continue for months or years.
The euro has its own particular problems, with the cost of a generous social safety net sending EC budget deficits careening. Use this strength in the greenback to scale into core long positions in the currencies of countries that are major commodity exporters, boast rising trade and current account surpluses, and possess small consuming populations. I’m talking about the Canadian dollar (FXC), the Australian dollar (FXA), and the New Zealand dollar (BNZ), all of which will eventually hit parity with the greenback. Think of these as emerging markets where they speak English, best played through the local currencies. For a sleeper, buy the Chinese Yuan ETF (CYB) for your back book. A major revaluation by the Middle Kingdom is just a matter of time.
I’m sure that if Alexander Hamilton were alive today, he would counsel our modern Treasury Secretary, Tim Geithner, to talk the dollar up, but to do everything he could to undermine the buck behind the scenes, thus over time depreciating our national debt down to nothing through a stealth devaluation. Given Geithner’s performance so far, I’d say he studied his history well. Hamilton must be smiling from the grave.
For those who wish to participate in Macro Millionaire, John’s highly innovative and successful trade mentoring program, please
Click here to get details on Macro Millionaire coaching program & trading service
More Macro Millionaire Program Information Here:
Macro Millionaire is generating a lot of buzz. I’ve received hundreds of questions about the coaching program – so I decided to ask John Thomas to answer the most frequently asked questions for you right now:
Question #1: What exactly IS your Macro Millionaire Program?
ANSWER: Macro Millionaire is a breakthrough new coaching program and top-flight trading service rolled into one. It’s your complete approach to becoming a world class global macro long/short trader. Basically, the goal is to transform you into a top hedge fund manager. It’s like you’re pulling up a chair next to me to look at my terminal as we trade our accounts together. I’ll give you the specific trades I’m making as I make them in the market. I’ll explain why we’re making the trade, how to execute it and answer all your questions.
PLUS, I’ll open up my vault of connections developed over 40 years in financial markets. This will give you the early insights, research and recommendations you need to play global markets for maximum money and minimum risk.
It’s the ultimate mentoring program for traders and investors tired of the hype, B.S., inconsistent profits and failed trades that devour your money.
==>Macro Millionaire Coaching Program and Trading Service Frequently Asked Questions
The Macro Millionaire Coaching Program is a mix of teaching and mentoring. Within the coaching program itself, John Thomas will be holding regularaly scheduled webinars where he will discuss strategy, opportunities, and the markets. Also during these webinars, there will be a Question & Answer time for you.
Who is John Thomas?
John has a stunning record and the best trading resume you’ve ever seen:
Not only is he sitting on 48 winners out of 49 recommendations in the past five months alone - and not ONLY does he have one of the greatest trading resumes I’ve come across, including…
- Having the honor of being one of today’s TOP-PERFORMING hedge fundtraders who consistently outperforms many of the big “household” name hedge-fund traders.
- Over 40 years experience in financial markets, including 10 years as a trader at Morgan Stanley.
- Holding a solid position at the top of the hedge fund industry since there were only about 200 funds (now they are over 10,000… run mostly by guys who want to be like John).
- Founder of Wall Street’s massively successful, ORIGINAL dedicated international hedge fund.
- Worked directly with traders like George Soros and Paul Tudor Jones, who hired HIM to consult with their hedge funds.
- And that barely scratches the surface of his resume.
Now, he’s offering to mentor regular, “do-it-yourself” traders. He’ll transform you into a world-class trader; first, by letting you trade side-by-side with his hedge fund.
Macro Millionaire: The Last Coaching Program & Trading Service You’ll Ever Need!
==> Macro Millionaire Review – Coaching Program & Trading Service
Macro Millionaire Videos:
1. Click here to watch How to play the commodities boom
2. Click here for How to trade like a Hedge Fund Manager: Strategies and Tactics
3. Click here for Millionaire Coaching Program and Trading Service where he mentors and helps YOU become a world class trader.
