Dollar climbs despite rates cut.

[SSSnail]

Text

Coordinated interest rate cuts by central banks around the world on Wednesday will do nothing to stop the U.S. dollar's advance given strong demand for liquidity and a safe haven.
...
The Fed, European Central Bank, Bank of England, Bank of Canada, Riksbank and Swiss National Bank all acted in concert, with even the Bank of China lowering rates by 27 basis points.

Haha! So they held out and tried to fcuk us earlier on, I guess everything comes around full circle huh?

I said this before and continue to support this position, that the US economy IS the world's economy.

 

[351Cleveland]

All else being equal... yes, the US economy is stronger than any out there. People give McCain shit for saying the fundamentals of the economy are strong. He isnt wrong. The financial markets are not the fundamentals of the economy. He is a moron for saying it and not knowing that people are going to completely not understand it... but he isnt wrong.

 

[senseamp]

This should read the dollar falls slower than other currencies, not that dollar climbs. It still fell relative to Gold, for example.

 

[LegendKiller]

Originally posted by: senseamp
This should read the dollar falls slower than other currencies, not that dollar climbs. It still fell relative to Gold, for example.

So, one speculative instrument fell in relation to another one? Or do you mean one raised relative to another one?

As soon as the market calms down gold will fall again.

 

[SSSnail]

Gold is another speculation bubble that everyone is jumping to. The dollar was lowered than everything else before and it's climbed.

So according to your logic, oil is worthless because the lowered price + dollar falling slower?

 

[LotusMan101]

lol

Bye bye
-Schadenfroh (AT Mod)

 

[351Cleveland]

Originally posted by: SSSnail
Gold is another speculation bubble that everyone is jumping to. The dollar was lowered than everything else before and it's climbed.

So according to your logic, oil is worthless because the lowered price + dollar falling slower?

All else being equal, stronger dollar = lower oil prices.

 

[mshan]

Previously, I thought dollar was strengthening because U. S. economy was in better shape than E. U. (or at least further along in terms of "fixing" problems).

But I saw a very insightful currency analyst on CNBC Asia webstream early tonight saying this may be some sort of currency carry risk trade unwind of American dollar (dollar yen carry trade type unwind?).

Kind of a gibberish statement because I don't remember exactly what she said, but it seemed to make alot of sense.

edit: found the video clip -> http://www.cnbc.com/id/15840232?video=882973493&play=1

 

[Kuragami]

Fact is various markets that have been previously linked have decoupled over the past few months and moved sometimes in opposite direction. There are some good reasons to explain some of this but it's hard to attribute it to a Fee Market Economy since no such thing exists. There is only market manipulation from one angle or another. Be it the IMF/World Bank twisting nations arms for their natural resources, various hedge funds calling in bogus market reports to CNBC, banks flooding the market with paper Silver/Gold, or massive investment banks flooding the market with FTDs. It's all the same and it's all institutionalized.

Want to try to guess what happens next? Study history.

 

[miketheidiot]

Originally posted by: 351Cleveland
All else being equal... yes, the US economy is stronger than any out there. People give McCain shit for saying the fundamentals of the economy are strong. He isnt wrong. The financial markets are not the fundamentals of the economy. He is a moron for saying it and not knowing that people are going to completely not understand it... but he isnt wrong.

the us economy is a wreck, people just think its safer that other places, ie brazil, china, india, etc

also, the dollar had been beaten down more than other countries earlier because it was generally expected that financial woes woudl be limited to the us for the most part, however it turns out that many places are as bad and worse, so dollar investments are not as relatively bad.

 

[fornax]

I think the rise of the dollar is caused by the demand for liquidity. There are more dollars floating around the world than anything else. Anyone who can will try to accumulate cash.

 

[SSSnail]

http://www.reuters.com/article.../idUSN0962519920081009

Despite unprecedented efforts by central banks to increase liquidity in money markets and lower borrowing costs, the fear of further bank failures continued to deter inter-bank lending and led corporations, funds, and banks to hoard cash, especially in U.S. dollars.

When the shiats hit the fan, this is where everybody go to, despite how much they hate us. They sure love the dollar.