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[Stock Lobster]

Except when it stops. I agree with Marc Farber that the ultimate value for the USD is near zero, should the US for any reason be unable to attract buyers to its regular auctions.

The movement in TBT Friday and today suggest that some degree of selloff in treasuries is taking place.

However, it is typical of the boyz to play with the market, especially the forex market. Just as we were all surprised last year by the unexpected recovery in the US dollar, and the rapid descent of all those emerging market stocks and currencies, is it possible that another crisis of any kind could have a similar deflating impact?

Elliot Precter says that a rebound in the USD is on it's way, fwiw, and I remember him correctly calling the beginning of this rally, back in March. I only wish I had believed him at the time

http://www.elliottwave.com/features/default.aspx?cat=mw

Treasuries, US Dollar Not Dead Yet

10/21/2009 1:45:00 PM

An increasingly loud chorus of investors expects the imminent demise of the US dollar and US Treasuries. They also expect that an exploding monetary base and the US’s structural problems will lead to massive inflation. This opinion may prove to be correct in the very long run, but evidence continues to mount that a deflationary phase will come first.

First, let’s summarize the inflationists’ view: Debt in the US is out of control, and the actions of the Fed, Treasury and Congress will continue to offset any deflationary slowdown in the economy. Deficit spending and interest rate cuts from almost every nation on the planet are inflationary.

The US’s exploding monetary base, which has more than doubled over the past year, and large fiscal deficits, which may exceed $1.2 trillion this year, will eventually devalue the US dollar and cause foreigners to flee the Treasury market. The interest payments on our national debt will rise because of this exodus from the US Treasury market, which will weaken the dollar further.