Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: Real Man who wrote (75202)	4/10/2007 9:58:28 PM
From: orkrious	Read Replies (1) of 94695

Once the confidence in the dollar as a reserve currency is lost, lots of dollars will come back from abroad, causing more of a decline. Would you please explain the above. People don't want dollars, so they raise the price of their products when priced in dollars. Foreigners will sell their US bonds, and they will get fewer dollars for them, or people will require higher rates before they will think about buying them. I'm sure it's a simple thing I don't see, but why does a declining dollar mean lots of dollars will come back from abroad? tia

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