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When It Comes to Dollars, More Is Not Necessarily Merrier
From Bloomberg.com:
The greenback posted the biggest weekly drop against the currencies of six major U.S. trading partners since the Plaza Accord almost a quarter century ago on speculation the Fed is flooding the market with dollars...
Still, don't worry that this is going to cause any possible problems down the line. Or, well, at least not for three months. After all, it isn't as if investors or lenders have any safe paper currency to flee to:
David Woo, global head of foreign- exchange strategy at Barclays Capital in London [says] “Over the next three months, I don’t see much downside for the dollar to the extent other central banks will be under pressure to follow the Fed’s lead and essentially go down the route of quantitative easing.”
Gold has fluctuated between $893 and $993 an ounce in past month, in the mid-$950s this week.
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|3.20.09 @ 6:24PM|#
It's a pity the Fed does not print any paper money, because I was really looking forward to warming my house with a few wheelbarrows of billion dollar notes, this winter.
TallDave|3.20.09 @ 6:28PM|#
It's going to get worse. They're now projecting deficits reaching 5% of GDP and extending as far as the eye can see.
"A New Era Of Fiscal Responsibility" indeed.
VM|3.21.09 @ 11:52AM|#
gaaaaahhh. fuck
Jeff Balla|3.22.09 @ 12:42AM|#
Barter, anyone?
Mr. Chartreuse|3.22.09 @ 2:23AM|#
On the bright side we can be best trading buds with that other economic powerhouse, Zimbabwe.