re:anyone elseJust got into the yen about a month ago. Follow Martin Weiss and Jack Crooks. His take on yen made sense.
Saudi Arabia Just Says "No"
To the Fed's Rate Cut
Apparently, the Saudis are worried that enacting rate cuts would just bring more inflation into their economy.
Now, many market watchers are worried that the country is considering breaking the dollar currency peg altogether. What would that mean? It means that …
#1. The Saudis could start selling their massive stash of dollar reserves.
#2. Other oil-rich nations might follow suit.
#3. The Saudis might even decide to price their oil in another currency! Should this change, there would be no reason for those countries to hold dollar reserves to pay for oil.
In each of these situations, the end result would be wholesale selling of the dollar, driving the greenback's value into a further tailspin. What about Europe's currencies? Well, the euro has been playing the role of dollar alternative, rising to record highs over the course of the week. The British pound hasn't fared so well because the Bank of England looks like it's facing many of the same lending problems that we have here in the U.S.
And among all the major currencies, the Japanese yen has the greatest potential of all: Not only because of the powerful forces punishing the dollar, but also because of the equally powerful forces I've told you about that are likely to drive the yen through the roof!