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View Full Version : Dollar, Yen Gain as Euro, Pound Weaken on Deepening Recession


SUBMAN1
03-27-09, 01:37 PM
When they plan to print a Trillion $$$, how can the dollar still continue to rise? This is almost weird. I guess you have to have less confidence in the other currencies. Recessions do weird things.

http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aoxOhUCmqhak

-S

UnderseaLcpl
03-27-09, 09:32 PM
The market hasn't yet been impacted by the trillions, nor by the nationalization of certain banks.
My guess is that the recent spikes in trading activity and subsequent little spikes on Wall Street are indicative of investors maneuvering into position to take advantage of whatever "free" stimulus money they can before the impact is really felt.

After that, I hypothesize that the dollar will take a big tumble, although it may be a gradual one, followed shortly by the currencies of nations heavily engaged in U.S. trade and finances, then by everyone else.

Assuming that the Federal budget doesn't completely collapse in the next couple of decades from debt interest and vastly increased entitlement spending, I think the dollar will come out on top, but everyone's currency will be weaker.