If This Doesn’t Indicate Dollar Doom, What Does?

I have written several times under the “dollar doom” category on my website about the scary implications of the US dollar’s slide against the euro currency. Today, Greece had its’ credit downgraded by two levels, this is a big deal. All of the finance and investment shows and websites were buzzing all day about euro currency worries. If Greece implodes, all euro-zone countries would be hurt financially.

On a day like today, an investor would expect the euro to get hit hard against the dollar. Greece is about guaranteed to implode at this point and cause major problems for the euro currency as a result. Investors should have been bailing out of euros and the US dollar should have gained a lot of strength against the euro today.

As the day started, the euro did slide against the dollar. As I checked the euro-dollar indexes in the afternoon I was shocked, the euro was gaining back its losses.

How could the euro, with all of its problems, be gaining on the US dollar? The answer is that the US dollar is still seen as a more risky investment than the euro. The bottom line is that the United States and more importantly the US dollar is in deep trouble.