you got me there...i think the whole world is trying its damned best to keep the dollar propped up, as an additional bubble support. note the BoJ regularly intervenes whenever the Yen appreciates and then sends the money to Al to do coupon passes with it.
the Euro, so everybody thinks, is not in any danger of going up, as the ECB doesn't seem to give a sh*t about it, and everybody's in the carry trade, including corporate America which borrowed over 300 billion Euros in the last 12 months. you understand, they borrow the Euros and sell them for dollars, that's the carry trade, as they use those dollars to buy back their grossly inflated stocks.
of course it is in utter defiance of logic that the currency of Al the printer-in-chief should hold up so well in the face of an unprecedented current account deficit in the history of the world.
it all hinges on the Euro...either the Euro is getting some support soon, or it's going to be stillborn, in which case i can promise you, the Deutsche Mark would immediately soar by 15-20%. the BuBa is a different taskmaster than the ECB. no way would it let the external value of its currency go down the drain like that...
well, to some degree the current dollar index value also represents the utter complacency and blind belief in the bubble by foreign investors. the Europeans have always been traditional bag holders... |
