[HUG ] SV: Re: The falling dollar/ photos vs digipics

"Now the reasons that investors like one
 currency and not another is more than I understand..."

Investors in the currency market tries to get the highest rate or return on 
their money valuing interest rate, currency rate minus difference in inflation. 
 Expectancy of these factors do also play a role.  That the US Fed's prime rate 
is lower than the US inflation is alarming.  It tells of that more dollar fall 
can be expexcted.

Note that banks can make - to a great extent, risk free investments in the 
currency market, something very few are aware of. Not even - obviously, the 
politicians.  Risk free investments attracts more money and the currency market 
is now astronomically huge with far more money going around than what is needed 
for export/import trade between nations.

Tom of Oslo

Tom of Oslo  
> 
> -----Original Message-----
> From: hasselblad-bounce@xxxxxxxxxxxxx
> [mailto:hasselblad-bounce@xxxxxxxxxxxxx] On Behalf Of Marc James Small
> Sent: May-06-08 12:37 AM
> To: hasselblad@xxxxxxxxxxxxx
> Subject: [HUG ] Re: The falling dollar/ photos vs digipics
> 
> At 02:21 AM 5/6/2008, JAMES WILLIAMS wrote:
> >The sagging of the US dollar is more political 
> >than economical, the US government likes our 
> >dollar worth less because then other countries 
> >will buy our goods. They are more concerned with 
> >making companies more money( you know the 
> >trickle down effect, lol). Hope I did not push 
> >anyones buttons, but sometime the truth hurts 
> >lol. But the real question is what is the truth? lol
> 
> 
> That is hardly "truth":  it is wild lunacy.  The 
> US government does not control the value of the 
> dollar in international trade;  that is set by the free market.
> 
> The dollar has recently fallen for a number of 
> reasons.  One primary cause is the insistence of 
> the oil market to continue to peg the price of 
> crude oil in US dollars:  as the Chinese demand 
> for oil has gone up, this has pressured the 
> dollar to decline in value relative to the 
> Chinese Yuan and, then, to the British Pound and 
> to the Euro.  There are other causes, but they 
> are of a like nature.  The feeding frenzy of our 
> government (Republican and Democrat Parties 
> alike) has not helped, nor have the costs of the Wars in South-East Asia.
> 
> In the short run, the cheap dollar will benefit 
> the US.  Our goods will cost less overseas and we 
> will have to pay more for imports.  That will 
> help to adjust the balance of trade problem we 
> have had since the days of Lyndon Johnson.  In 
> the long run, the dollar will rebound.  I hope 
> that this will not be for some years but most 
> economists figure that it will happen within 24 
> months.  In the end, though, the dollar will be 
> up and gas and food prices will fall.
> 
> I am 58 and have been through cycles like this 
> before and will do so again if I live long 
> enough.  Truly, there is nothing new under the 
> Sun:  the British were horrified by a similar 
> situation in the 1790's, though they did not then 
> have to deal with petroleum imports!
> 
> Marc
> 
> 
> 
> msmall@xxxxxxxxxxxx
> Cha robh bàs fir gun ghràs fir!
> 
> 
> ====================================To unsubscribe from this list, go to
> www.freelists.org and logon to your account (the same e-mail address and
> password you set-up when you subscribed,) and unsubscribe from there.
> 
> No virus found in this incoming message.
> Checked by AVG. 
> Version: 7.5.524 / Virus Database: 269.23.8/1415 - Release Date: 05/05/2008
> 6:01 AM
>  
> 
> No virus found in this outgoing message.
> Checked by AVG. 
> Version: 7.5.524 / Virus Database: 269.23.8/1415 - Release Date: 05/05/2008
> 6:01 AM
>  
> 
> 
> ============================================================================================================To
>  unsubscribe from this list, go to www.freelists.org and logon to your 
> account (the same e-mail address and password you set-up when you 
> subscribed,) and unsubscribe from there.
>

Other related posts: