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

To: The Vet who wrote (100618)	8/10/2009 4:48:07 PM
From: ecrire	2 Recommendations Read Replies (1) \| Respond to of 116555

Why worry about Dollar devaluation? The Dollar is rising, not falling. It's Gold that is being devalued.

To: The Vet who wrote (100618)	8/10/2009 4:53:41 PM
From: Amark$p	1 Recommendation Read Replies (1) \| Respond to of 116555

Ok, let's take a look at what Switzerland did on March 12, 2009. You may recall many articles called this a devaluation at the time. "March 12 (Bloomberg) -- The Swiss central bank cut its interest rate close to zero and started buying foreign currencies to stem the franc’s appreciation as the recession sharpens and deflation looms. The franc plunged the most against the euro since the single currency was introduced in 1999 after the Swiss National Bank in Zurich lowered its main lending rate to 0.25 percent from 0.5 percent. The SNB also said it would buy corporate bonds as well as currencies in its first solo intervention in foreign exchange markets since 1992. Intervening on the markets to sink their own currency has a name: devaluation." _______________ I am just kicking around ideas... on how a bank holiday coupled with some means to spark devaluation. Guess US could issue $1 trillion in new bonds and buy foreign currencies, that should work...? Did not work for Swiss National Bank but for a few days, but US could print its own money...? Would appear that commentators such as Harry Schultz, Puplava, Bob Chapman, etc. would not be commenting on such a possibility if it were not feasible somehow... But you raise an interesting point, how does one devalue a currency with free floating exchange rates...