© 1997, 2008

For Immediate Release

U.S. Dollar Collapse Inevitable, US Suffers Financial Fraud Crisis Not Credit Crisis

FinancialTrader.com forecasts the U.S. greenback to rapidly collapse as the U.S. hyperinflates the  economy, banking system, and money supply for Wall Street's benefit.    As a logical response, currency traders, international institutions, and Sovereign Wealth Funds vote no confidence is the U.S. Dollar as transparency in the U.S. economy has been marred by fraudulent ratings, and dishonest balance sheets from the likes of Fannie Mae (FNM), Freddie Mac (FRE), and a host of other multinationals. 

Fort Worth, TX (Financialtrader.com) October 7, 2008 -- Financial Trader.com forecasts an imminent U.S. Dollar collapse, ETF symbol FXE, as all but guaranteed based on the hyperinlfationary policies of the U.S. Treasury and elected U.S. officials.  Heavily relied upon credit-rating agencies continue to miss the mark and underestimate the level of risk now structural and systemic in the U.S. financial system and large multinational corporations.  This was typified when large hedge funds caught up in the collapse of Lehman Brothers found that they could not access assets in Lehman’s European arm even though the major credit agencies held investment grade ratings just prior to Lehman's well documented collapse. Given the U.S. business culture of 'dishonesty and cheating', and several large firms and rating agencies publishing 'safe and sound' statements prior to collapse, investors find U.S. balance sheets weighed in the scale and wanting. 

In essence, the financial sector players and bankers completely distrust one another and refuse to lend amongst themselves revealing a character crises rather than a credit crises at the core of the financial maelstrom.  There is no U.S. Treasury bail out plan that will remedy this breach of trust, which is fundamental to all business transactions.

While credit default swaps (CDS) have been at the heart of several meltdowns, with even GE (GE) needing a capital infusion from Warren Buffet to avoid a run on the bank, the fact of the matter is that these insurance contracts have forecast the default risk exceptionally well, particularly since bond holders, the primary beneficiaries of CDS', see financial failure as a high probability.

The impact to the U.S. Dollar is immense.  Global economic communities have already begun offloading the U.S. Dollar as a currency of reserve since basic, fundamental trust has been breached. 

The U.S. consumer and the U.S. Treasury are now intricately coupled, much to the dismay of credit rating agencies and policy makers.  The Treasury and the consumer spend more than they earn, consume more than they produce, and borrow more than they save, by an astonishing number.   This misfeasant financial management is simply unsustainable as indicated by several key financial barometers.

As noted in prior press releases, U.S. Treasury Bonds continue to be sold in large quantities to support the financial markets which will negatively impact the value of the U.S. Dollar.  The current price tag reveals a $700 billion sticker per Henry Paulson and U.S. Treasury officials, yet this is the same team and administration that brought us an $80 billion Iraq war price tag that mushroomed to well over $2 trillion, and an additional bailout of $1 trillion for Fannie Mae (FNM) Freddie Mac (FRE), Bear Steans, and AIG (AIG). 
 
In addition, given that the sovereign wealth funds of Japan, China, Russia, and the Middle East are the primary holders of US Treasury Bonds, but not the beneficiaries of the bailout plan, expect to see them unload their dollar denominated U.S. assets in masse.

U.S. DOLLAR and TREASURY BOND FUNDAMENTALS VERY BEARISH
The U.S. Dollar has already collapsed over 50% in just the last decade, interest rates in the collateralized debt market required federal freezing in early 2008, gold and crude oil are trading as hyperinflationary currency hedges, and our debt markets stagger like a drunkard with the weight of the largest global debt default in written history hanging upon its shoulders. 
 

Conclusion: Given these negative fundamentals, we forecast another 50% decline in the U.S. Dollar versus the leading world currencies in the next several quarters. In addition, our financial computer model, WatlooSoft©, agrees and maintains a strong technical sell signal on the U.S. Dollar with a forecast of a 50% decline in the coming quarters.  
 

FinancialTrader.com continues to engineer financial products, transparent rating systems, and trading software, WatlooSoft©, to help create transparency and opportunity for investors.

###

© 2008 FinancialTrader.com Inc.  Financial Trader Research obtains information from sources deemed reliable, but does not warrant its accuracy and disclaims for itself and its information providers all liability arising from its use. No information provided shall constitute tax, legal, or investment advice, or an offer to buy or sell securities.