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at a loss

Unread postby miraculix » Tue 17 Feb 2009, 11:40:40

Considering the monetary fundamentals, I have been bearish on the dollar for years.

However, current FX trends are quite vexing.

Can somebody please explain the dollar's strength vis-a-vis the other major currencies!
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Re: at a loss

Unread postby basil_hayden » Tue 17 Feb 2009, 11:41:47

We suck, but they suck more.
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Re: at a loss

Unread postby Jotapay » Tue 17 Feb 2009, 12:11:18

Evidently there was a trillion dollar liquidation last night in Asia. They liquidated from all asset classes into dollars.
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Re: at a loss

Unread postby mattduke » Tue 17 Feb 2009, 12:13:16

The dollar is down 3% against gold today.
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Re: at a loss

Unread postby diemos » Tue 17 Feb 2009, 12:33:33

basil_hayden wrote:We suck, but they suck more.


Yup. Flight to safety. (or at least perceived safety)
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Re: at a loss

Unread postby Eli » Tue 17 Feb 2009, 16:22:59

Something like 70% of global debt is held in dollars. If you have debts that need to be paid of you need dollars.
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Re: at a loss

Unread postby Snowrunner » Wed 18 Feb 2009, 00:48:18

Eli wrote:Something like 70% of global debt is held in dollars. If you have debts that need to be paid of you need dollars.


Bingo.

Same as last year, people are trying to settle their debts, this isn't a flight to safety, that's an attempt to get out from under the house of cards.

Yeah, it looks the same, but the motivation why people go into the Dollar right now is utterly different.

How much longer? Who knows, I guess for a while longer as the debts are being shaken loose.
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Re: at a loss

Unread postby copious.abundance » Wed 18 Feb 2009, 01:18:06

miraculix wrote:Considering the monetary fundamentals, I have been bearish on the dollar for years.

However, current FX trends are quite vexing.

Can somebody please explain the dollar's strength vis-a-vis the other major currencies!

Look at it this way: Japan's economy is doing even worse than the US, and the Japanese government is even more indebted than the US government, and yet the yen has been doing even better than the dollar.

Sometimes bad is good.
Stuff for doomers to contemplate:
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http://peakoil.com/forums/post1193930.html#p1193930
http://peakoil.com/forums/post1206767.html#p1206767
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