Dear Friends,
Here is small part on currencies from "2008-09 World & Financial Prophecies", page 36 to 39. We can find some indications that Dollar has bigger role for many years.
Thanks & God Bless
Mahendra Sharma
Currencies
Paper designed and printed in factories today controls the hearts and minds of people in the world. We all work to acquire money because it is an essential tool that helps run our daily lives. Money is therefore inseparable from our lives, and every country has its own currency of various units. The US Dollar has been dominant for a long time as most international transactions are conducted in this currency. Furthermore, the system of trade created by the USA government has been dominant in banking throughout the world.
If the value of a country’s currency declines, people get poorer compared to others whose currencies are rising in value. A good example is Zimbabwe, where in the last seven years the currency value has dropped too many times, with devastating impact on the country’s economy. Another example is the USA, whose currency has dropped substantially from 2002. People whose life is based on the USA Dollar have consequently become poorer against other major currencies. For example if someone working in Canada used to send $5000 to his family in the USA, he is now sending $7500 because the exchange rate has gone down for the US Dollar. As a result, the value of assets in the USA has gone down drastically against international value, which explains why people from outside the country are trying to acquire assets in the USA.
Knowledge of the future trend of currencies will assist investors to diversify their investments and assets. In the last three years people have made money in emerging markets and European markets through the stock market and against the US Dollar. However, outsiders who invested in the USA market have actually lost money because the market largely remained the same or gained 10%: the international investors lost value in terms of currency when they repatriated it back to their countries because the Dollar was worth less. It is therefore crucial in the current scenario to have an idea of how the future trend of currencies will unfold.
US Dollar
I committed the biggest mistake of my astrological career by going against my own predictions and I know that nature will never forgive me. Through my books in 2002, 2003 and 2004, I stated that the US Dollar would trade weakly until 2007, and it would then move up more than 40%, and this is what happened. However in early 2007, I called a turn around in the Dollar but this was too late. Anyhow, I am now coming back to the original prediction of a rising trend in the Dollar that I talked about four years back.
I see a steady rise in the US Dollar from February 2008, and this trend will continue for the next three years. There will be some downward trends in between, which is part of the natural pattern, but it will be positive overall.
I predict that the US Dollar will rise strongly against commodity currencies and European currencies. It will however be stable against the Japanese Yen and the Chinese Yuan as they gain against major world currencies.
In 2008 the US Dollar will gain around 12%, meaning from $75.30 to $84.90, which is a big move for anyone trading currencies. I recommend buying and holding the Dollar without much trading.
The US Dollar will move up sharply from May 2009, gaining another 12% by the end of 2009, and this will firmly position it at a multi year high.
Ignore most expert advice about the Dollar because their predictions will be wrong in 2008 and 2009. Buy the US Dollar.
Canadian Dollar
In 2008 and 2009, the Canadian Dollar will trade weakly. It will however rise sharply against all major currencies between August and early November 2008.
At the time I am writing this book the Canadian Dollar is trading around 1.01 or par value against US Dollar and this is a life time opportunity to sell this currency. By the end of 2009 the Canadian Dollar will reach $0.77.
Australian Dollar
This is one of the currencies that will fall heavily against Asian currencies and the US Dollar from mid 2008, and this weak trend will continue even in 2009. In early 2008 the currency will be stably or positively, but only until the end of February, after which we expect an unrelenting weak trend beginning from March.
The Australian Dollar will fall from $0.91 to $0.61 in the next 18 months, therefore trade carefully. As a matter of fact, don’t buy even when you see lower prices.
British Pound
In 2003 I expected the British Pound to move to 2.00 against the US Dollar and it finally did in 2007. Unfortunately I was unable to focus well on currencies in 2007 and therefore could not guide you properly. Nevertheless, my calculations show that the British Pound is nearing major weakness. There will be a short, medium and longer term bear cycle, and it will not be surprising for the Pound to fall below par value against the US Dollar in the next five years.
2008 has started on a weak note for the British Pound and I see it moving down during the whole year except in June and July when there will be a counter-trend. However, you should keep in mind that the overall trend will be weak.
I expect the Pound to reach 1.72 against the US Dollar in 2008, but 2009 will be worse. During this period, the Pound will lose more value within one year than has ever happened before and it will break $1.50. Currency traders will lose a fortune if they trade in favor of the Pound in 2008 and 2009.
The British Pound will lose against all major world currencies and I am calling an end of its high weight era in the currency market.
Euro
In 2001 I expected the Euro to move up to $1.38 when it was at $0.83, but it went above that and has almost touched $1.49. The Euro will begin giving negative signs from the middle of February and a bear market will begin from the middle of March.
Overall, the trend of the Euro will remain down to the end of 2008 with little upward trends. I however don’t see it rising above the January 2008 prices. Indeed, I see it coming down to 1.3280 by end of the year. If it however breaks this level and trades below it for more than seven days, then it will be confirmation that the Euro will go to 1.28 against the US Dollar.
2009 will be the worst year for the Euro as it will fall more than 12% and could fall to 1.14 against the US Dollar. A problem will develop in the Euro-Zone that will bring fears of a breakup of the European Union. Eventually, this could happen before 2012.
The Euro will lose value against the US Dollar as well as the Yen in the 2008 and 2009.
Swiss Franc
This is the only currency that I trust in Europe for 2008 and 2009. Even though it will lose value against the US Dollar, it will still gain against the Euro and Pound. People in Europe and those who want to buy the Dollar should keep their money in Swiss Francs.
If I had 100 Dollars, I would buy 80 Dollars, 15 Yen and 5 Swiss Franc against all major currencies. The Swiss Franc will gain against commodities and European currencies but it will lose value against the Dollar. I see the Franc losing 12% value against the USD in the next eighteen months.