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 ?
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
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!
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