Hi Jay, I stand corrected, the dollar is not electricity ...
Message 16091966
... or a pool of funding or a river of cash:
<<Money is like water (CB thought it was like electricity), it flows, pools, rises, boils, evaporates, bursts, floods, and freezes. Humans try to dam it, guide it, use it, for good and evil>>
It is just another asset based on a liability, with a daily mark-to-market change-of-perception based price:
dailyreckoning.com
<<p.s. There is a view that financial markets outside the United States are too small to absorb potential capital inflows from the United States. This view misses the point. Under a system of flexible exchange rates there are no flows of money at all from one country to another. For every dollar to be sold at a certain exchange rate there must essentially be a buyer at that rate. In the absence of buyers, the exchange rate collapses. Look out below.>>
Chugs, Jay |
