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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (71459)	12/6/2009 11:52:10 AM
From: carranza2	Read Replies (1) \| Respond to of 74559

Regardless of the influence of the EUR on the USD, any currency whose base increases like the USD's has will most likely decrease in value. Because the Great Recession has been so deep, US interest rates are unlikely to go higher any time soon for fear of risking any damage to the 'recovery'. After all, the present political scheming is centered around how to stimulate more without calling any new programs a 'stimulus.' As a result, I am afraid we are in for a long period of very low interest rates in the US. If other countries raise their rates, that is fine with American policymakers as these rate hikes weaken the dollar, and the debt owed by the US (while stimulating US exports), every time they happen. Did you notice the Chinese kinda sorta reiterated their support of the USD the other day?

To: Haim R. Branisteanu who wrote (71459)	12/6/2009 5:14:50 PM
From: marcos	Read Replies (1) \| Respond to of 74559

Some of the most important things are quite simple at the heart of them, or at least have simple factors working on them ... one being, currencies historically tend to overshoot on major moves, they have no happy medium at which they hang around ... another, that USians don't have a monopoly on the sorts of issues that degrade currencies - parts of the EU have pretty drastic numbers, and not just the PIGS either, i think it's dear old dankenswert Deutschland that has highest per capita govt debt? ... think you're probably right though, usd could likely bounce against the euro before long, also against loonies, which matters more to me, still not all that much What matters, is that metals both precious and base, along with other realities, rise against all of the fiat constructs ... and they're doing that, fits and starts but pretty steadily over time for ten years now - stockcharts.com