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Obama “The Dollar is Still Strong” March 22nd

Posted on | March 22, 2009 | 6 Comments

dollarindexOh President Obama, you truly believe that the dollar is still strong, don’t you?  You even told the entire country that “the dollar is still strong” in your 60 Minutes interview.  Just to let you know, after Fed Chairman Ben Bernanke injected $1.05 TRILLION into long term treasuries and mortgage backed securities, the “strong dollar” index immediately dropped from 87 to 83.  A 4.6% drop in two days is quite significant if you ask me.  Obviously, two days a trend does not make.

I know you are man of history President Obama as you have made history many times over.  If you look at the recent history of the United States dollar, how can you make the statement that the “dollar is still strong?”  If you look at a 40 year chart of the dollar index, it is a steady downtrend from 1985 until now.  In 1985, the dollar index was at 165 compared to the 83 today.  The dollar is still strong?  I realize that much of the dollar decline can be attributed to the Bush administration but do not tell me that the dollar remains strong when it is half of its 1985 value and likely to go lower!

With the national debt surpassing the $11 trillion level, how can you make the believe the dollar is still strong?  I tell you what President Obama, I will be willing to challenge you on your statement.  We will see the value of the dollar index start a long term decline within the next year.  This decline will last several years and will cause the dollar to test lows it has never seen in history!  The dollar index currently trades at 83.83, let’s see who is right over your presidential term.

I guess if you feel that the value of the dollar is so strong, Americans should continue to strongly invest in equities correct?  Well, I will be willing to challenge you on that as well.  I will invest in commodities such as Gold, Silver, Oil, Copper and Agriculture and you invest in the overall stock market.  To make this fair, you can track the SPY, the overall S&P 500 index as well as the dollar index and I will track the DBA, DBB, DBP and DBE equally.  These are the commodities etfs of argiculture, base metals, precious metals and energy.

On March 22nd, here is where we stand:

President Obama
SPY -  76.71
Dollar Index – 83.83

Subprime Blogger
DBA – 25.01
DBB – 12.89
DBE – 20.25
DBP – 32.77

Just to reiterate, you did make the statement that “the dollar is still strong” so you have no reason to think commodities will increase, but equities will.  I will enjoy this challenge President Obama.  There is no doubt you are much more educated and smarter than I so you should win hands down.  You also have control over the major decisions that affect the financial markets of this economy which also gives you a major advantage.  With that being said, I will still take the challenge.

Category: Obama Mortgage Bailout Plan

Comments

6 Responses to “Obama “The Dollar is Still Strong” March 22nd”

  1. Subprime Blogger / Mortgage Rates Trends - March 24th - Prime Rate Pulling Mortgage Rates Lower?
    March 23rd, 2009 @ 8:21 pm

    [...] it does, we are likely to see the overall trends in mortgage rates bounce as well.  Currently, the Federal Reserve Bank is doing everything in their power to push mortgage rates lower so it is highly unlikely we will [...]

  2. Subprime Blogger / Subprime Blogger vs President Obama Investment Challenge
    June 24th, 2009 @ 7:16 pm

    [...] those of you who were not aware, I started the Subprime Blogger vs. President Obama Investment Challenge on March 22nd, when President Obama made the statement, on National TV, that the “dollar was [...]

  3. The Financial Suite » Subprime Blogger vs President Obama Investment Challenge
    June 24th, 2009 @ 8:10 pm

    [...] those of you who were not aware, I started the Subprime Blogger vs. President Obama Investment Challenge on March 22nd, when President Obama made the statement, on National TV, that the “dollar was [...]

  4. Ron Paul: US Dollar Collapse When China Stops Buying Debt : Subprime Blogger
    October 16th, 2009 @ 3:05 pm

    [...] after this video was recorded President Obama went on 60 Minutes and made the statement that “the dollar is still strong.”  Unfortunately the dollar was not strong and we have seen that as a 10% drop has happened [...]

  5. The Financial Suite » Ron Paul: US Dollar Collapse When China Stops Buying Debt
    October 16th, 2009 @ 3:48 pm

    [...] after this video was recorded President Obama went on 60 Minutes and made the statement that “the dollar is still strong.”  Unfortunately the dollar was not strong and we have seen that as a 10% drop has happened [...]

  6. Ron Paul: US Dollar Collapse When China Stops Buying Debt « Wars & Rumor
    October 20th, 2009 @ 10:46 am

    [...] after this video was recorded President Obama went on 60 Minutes and made the statement that “the dollar is still strong.”  Unfortunately the dollar was not strong and we have seen that as a 10% drop has happened [...]

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