Dollar Cycles Peak in late-2016
Dollar Cycles Peak in late-2016;
Election Harbinger?
03/02/16 Talk Digital Network Interview:
Jim: “Eric, I know that you follow so many different cycles in so many different areas. Let me ask you, do you see any divergence of cycles, depending on who wins the U.S. election, say Hillary vs. Donald?
Eric: There’s a couple really important, big picture, long term things that you can certainly associate with that. One of them has to do with the Dollar…the Republicans tend to favor a declining Dollar, increasing export potential and all the things that go along with that.
And the Democrats, whether they’re favoring it or whether it just tends to rebound when they’re in office, they tend to coincide with a strengthening Dollar.
You can go all the way back to the ‘80’s when the Dollar really took its big dive after the Plaza Accord…you would see James Baker on the television going from one show to another talking down the Dollar.
In the Reagan administration, at one point, he was Secretary of the Treasury…During his Treasury days, it was clear that they wanted a declining Dollar. Now the Dollar had become prohibitively strong at that point and was really impacting exports.
But you could see that same mentality even during George W. Bush’s administration. Who was the legal counsel that really helped spearhead Bush’s win over Al Gore during the whole election debacle? James Baker. So you know that he probably had some strong influence on that administration as well.
You saw the Dollar decline from a peak in late-2000, early-2001 until a bottom in 2008 almost perfectly lined up with the administration. And then it went through a bottoming phase for a few years during the early parts of Obama’s administration and has been strengthening in recent years.
With the cycles that I have already been anticipating a Dollar peak in 2016, it does make me wonder if that’s any precursor or omen… we might see a Republican administration the next time around.”
https://www.youtube.com/watch?v=DqKDHhlN06g
