In today’s crisis that we are experiencing, the dollar can really fall down and theoretically speaking, it can go down to zero. That is what has happened to every currency that has ever existed.

The question is that will the central banks help the dollar? This is the question that has a no answer because who can support the US government? The US government has been known to have 25% of the world’s resources but they are just producing 10%. The United States has been on the top list when it comes to the economy, and the USD is the reserve currency, and by the time Nixon abandoned the gold standard, the USD is now only backed up with the faith and the belief in the US government. With the decline of the USD, the commodity had a boom. The USD is the currency that is used in pricing most commodities like the oil and the gold. In case of any event affecting the USD, no other central bank can bail the dollar out.

The US, considered to be the savior of many economies, are the ones who are helping the other nations by bailing them out in case their economy fails, but the US does not have other countries richer than it that can help bailing the US out from its failing economy, not unless Russia, which does not have a good relationship with the US, will help the United States out.

Many currencies all over the world depend on the USD Thus, if the USD falls down, so will these other currencies.

What Can We Do?
There is no specific answer that can be given to the question of what can we do in times like this. On a personal level, when it comes to finances, you can save yourself now, be debt free and have a low cost way of life. Sell that mortgage that you have and do not wait for some miracle to happen for the economy to get better because chances are, it may get even worse. Make sure your finances are stable by doing your best at what you can do to keep your business going or to keep that job you already have.

Start on finding a job or research business opportunities while the economy is going down. No solution can be determined at this time on how we can save the economy but there are things that we can do to save ourselves from the effects that the falling of the dollar may bring.

Tags: falling dollar rates

1. It lowers your interest rates. If the current interest rate in the market is lower than the interest rate when you got your home mortgage, then refinancing your home mortgage will allow you to replace your current home mortgage’s interest rate with the current interest rate in the market. As we all know, you could really save you a lot of money just by lowering your interest rate even if it’s just by a small percent. Just a reminder, when refinancing a mortgage, just make sure to check the current interest rates first in the market.

On the other hand, you can also save yourself from changing interest rates if you’re currently under an adjustable rate mortgage loan (i.e. your mortgage interest rate changes based on market changes). It allows you to break free from that and allows you to have a fixed interest rate. It is a fact that changes in interest rates have big financial implications for any loaner; hence, it is better that you protect yourself from constantly changing and inflating interest rates by getting a fixed one once you refinance your home mortgage.

2. It lowers your monthly loan mortgage payment. If you’ve had your home mortgage loan for a long time already, when you refinance your home mortgage it allows you to change your monthly loan payment to smaller amounts. In this way, you can save a whole lot of money every month and even have more cash at hand to pay for your other bills like your credit card bills and in effect improve your credit rating as well.

3. It allows you to consolidate your credit card loans and other loans. It is a fact that home mortgage loans have lower interest rates than credit card interest rates and other debts. By refinancing your home mortgage, you can consolidate your credit card and other loans with a low interest rate which you normally get when refinancing a loan.

Tags: refinancing home mortgage

Though trading futures and options is an extremely risky area to invest, this niche is growing rapidly in recent years due to the easy accessibility of instant updated data through the internet, which makes it possible for day traders to make substantial profits. Small investors are now able to invest and trade in this highly risky area with the same comfort, ease and speed of big companies.

Before entering this high risk area of Forex trading you should:
• Make an honest review of your capabilities, both monetary and knowledge wise and decide on the amount to invest.
• Be aware of the commodity futures and option contracts and your responsibilities before making the actual investment.
• Make sure that you receive the risk disclosure documents from your broker and review it thoroughly.
• Gather as much information as possible and clear all your doubts before you take the first step to open a trading account.
• Know who to contact in case of trouble or if you have a question.

Tags: Commodities Futures

Related to forex signals in Dolar/Yen currency exchange at FXA, I bought on the March 24th close above the bearish from the 99.65 high (closed at 98.70), but the inability to accelerate higher (at least so far) is starting to raise the risk for more wide ranging before the new highs are seen. To compensate for this rising risk, would use a more aggressive stop on a close below the bullish trendline from mid March (currently at 96.60/70), but with the expectation of rebuying at lower levels if taken out. Support below there is seen at 96.00 (Monday’s spike low) and the bullish trendline from Jan (currently at 94.90/00).

Longer term, though another rally above the 99.65 is favored, it would be seen as the final upleg in the rally from the Jan low at 87.15 (wave 5), but also the final upleg in the whole correction from the Dec low at 87.15 (wave C of an “irregular” correction). Note that this type of correction breaks down to a series of 3 waves up (a-b-c from the Dec low), 3 waves down (a-b-c from the Jan 1t high at 94.60), and then a final 5 wave rally (from the Jan low), see numbering on a daily chart.

Tags: dolar/yen, multiple currencies