Trader/analyst Rick Ackerman says forget about the demise of the U.S. dollar anytime soon, Ackerman contends, “I have been totally bullish on the dollar for years, and it looks like clear sailing to me.  The dollar is certainly responding to what I would call economic fundamentals, even though bonds have been on this odd holding pattern for a while based on a wishy-washy Fed.  I see nothing but a strong dollar because if you look at the global derivative market, it implies a dollar long and a dollar short position. . . . The side that has to pay back in dollars is effectively short it.  So, we have this monstrous derivatives market, and some experts put it at a quadrillion and a half dollars, and it represents a huge short position on the dollar, and the squeeze is starting to happen now.”

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So, will there be a point when the dollar will be knocked down in value?  Ackerman says, “The Fed can monkey around with the little stuff, but when you talk about a quadrillion dollar market ($1,000 trillion), it’s much bigger than all of the central banks put together.  It’s a real humpty dumpty situation, and all the king’s men couldn’t begin to address strength in the dollar.  It’s just going to happen.” Continue reading →