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RE: Weak Economy, Weak Hands, and a Weak Dollar … (Death of the Dollar–18) with Link to Full Story
Many analysts think the dollar is overvalued. But that means nothing on short or middle term. The exchange rate can differ from fair value for many years, even some decades. If all are buying dollars - because there is some positive real interest rate in USD, for example, or because it is believed to be a safe harbor - the dollar will surge. (Or stay stable, at least.)
I agree. There is too much power behind the dollar, and too many people relying on and using the dollar, for it to collapse overnight. Nobody knows when it will slip into a death spiral, and in fact, many people believe it will not collapse.
However, it's quite clear that it will eventually collapse. It's simply a question of when ... or how long before.