SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Currencies and the Global Capital Markets
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: SofaSpud who wrote (3248)3/12/2002 11:21:20 AM
From: Robert Douglas  Read Replies (2) of 3536
 
But it frankly never seems to come to a head.

Of course that doesn't mean that it won't. If the rest of the world hadn't had such a tremendous appetite for dollar assets the last several years, the dollar would have corrected long ago.

Currency traders are notorious for being trend followers. As long as the dollar kept rising, they kept buying it. Sooner or later, the growing holdings of $US assets - and the payments to service those holdings - will surpass even the willingness of foreigners to fund these current account deficits. It's then that the trend followers will go the other way and will be swimming with the tide.

I don't believe it will be a financial crisis, by any means, but I do believe a decline in the dollar will be vigorous.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News