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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (21582)	8/25/2007 3:27:15 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 220242

...ban off/Not really: <If I remit money home I sell USD or whatever and buy my home currency. It puts downward pressure on the USD exchange rate > There is a counterparty who was thinking that they would buy USD and remit money home, or do something else that they thought was a good thing. That puts equal and opposite upward pressure on the USD exchange rate. What matters is the minds behind the trades. If one of them is in panic and trying to quit a fearful situation, then there is a repricing. THAT's when there is downward pressure on the price of something = when lots of people are thinking similar fearful thoughts. Remitting money home is not downward pressure. Fear is the downward pressure. The price is just a measure of the fear. The counterparty is saying the fear is overdone. If I get panicky about the USA, and others are fearful too, I have to cut my price to attract sufficient takers. It's the thinking that causes the pricing, not the trading. .../ban on Mqurice