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US$ strength

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Robbie
Regular Contributor
The following makes sense to me: Panic in stock markets > Gold price go up; US$-¥ carry trades worry > ¥ strengthens against $. The following makes no sense: US economy in deep trouble (likely more than all others except Zim) > US$ strengthens against all currencies (watch the US$-CDN$). I would have expect that foreign investors into USA would sell their dollars. Can anyone explain this ?
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9 REPLIES 9
_nova
Super Contributor
Yep, printing paper money has an inflationary effect down the line. Expect the following currencies to get stronger in the following order JPY, USD, GBP, EUR. Everything else, including the ZAR will be decimated. Gold is going to go through the roof and I won't be surprised if we see USDZAR at 10 very soon
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And the reason for US$ strength may also be that so many countries have US$ investments that it just isn't in their interests to let it "pop" like the paper bag that it is!!!
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Your second assumption is correct......but long term. Short term dollar is and will rally because it's the world reserve currency and the present crises is called a "credit" crises cause theres a lack of credit (cash). Hence everyone is scrambling for dollars thus pushing up prices....for now. adios!
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Robbie
Regular Contributor
When the party is over we might look forward to start living in "The Post American World" (the book is already written). I am sure it's coming - just don't know when.
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Surf_Rat
Super Contributor
everyone is scrambling to get dollars to buy that toxic debt at huge discounts ( china and the arabs will almost own america ) once they start printing those dollars or pressing enter to make money a liqiud asset then I think the dollar will tank
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Shaun_Siddall
Super Contributor
All emerging markets have seen huge outflow of funds during sell off.
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US is major Tax Haven for fx investors
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Vano
Regular Contributor
Heard a fellow on Summit this morning, explaining that the Yanks were selling their investments in "high risk" emerging markets, causing net inflow of dollars into the states.
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Robbie
Regular Contributor
We might consider the US as risky as Zim very soon !
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