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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Taikun who wrote (16532)11/22/2004 8:24:06 PM
From: GraceZ  Respond to of 116555
 
Those dollars that have left the system and gone to be used in exchange elsewhere, where their presence is uncounted

They've always been counted in the money supply, they just have more effect on someone else's economy than they have on ours.

if they moved back over the course of 1 yr, at $4bn/week that would have an impact.

Forex trades up to 2 trillion every day. If the Fed with 100 billion to push around doesn't feel it can have anything besides a transitory effect on the level of the dollar, I doubt seriously if 4 bn a week over a year would either.