Why US Dollars rised over teh last day?

[chequita guevara]

Originally posted by Thue
But every player is too small to make a difference. So why jump aboard the sinking ship and try to patch the holes?

Because the very big players are big enough to make a difference.

[Kidlicious]

Capitalists are well known to attack their own currency. They'll destroy their own system, not save it.

[Darius871]

Originally posted by Kidicious
Capitalists are well known to attack their own currency. They'll destroy their own system, not save it.

Yeah, that makes a heap of sense. To what end might I ask?

[Kidlicious]

Originally posted by Darius871

To what end might I ask?

To get richer obviously, or do you mean something else?

[Darius871]

By "destroying" the very system that sustains their wealth? I think you might want to reword your comment.

[Fake Boris]

Originally posted by DanS
Two possibilities among others...

1) US assets are seen as the safe haven

2) US individuals and companies were repatriating dollars en masse

Could it be that bailouts will entail people buying USDs to lend the government money?

[Kidlicious]

Originally posted by Darius871
By "destroying" the very system that sustains their wealth? I think you might want to reword your comment.

The actions of one capitalist doesn't matter. They act in their own self-interest, and collectively they destroy the system.

[Lancer]

Originally posted by CrONoS
Nice I love being on a list

All I need to know is where to send the Christmas card pal.

[Darius871]

Originally posted by Kidicious


The actions of one capitalist doesn't matter. They act in their own self-interest, and collectively they destroy the system.

Which is why I suggested you rephrase; you used the word "attack" which implies an intentional act to accomplish the destruction. If you mean their self-interest would inadvertently destroy the system, the point makes sense.

[Kidlicious]

Originally posted by Darius871


Which is why I suggested you rephrase; you used the word "attack" which implies an intentional act to accomplish the destruction. If you mean their self-interest would inadvertently destroy the system, the point makes sense.

I specifically said they attack their currency. If you don't know what that means you shouldn't tell me what language to use.

[Darius871]

Explain to me then how "attacking" their currency does them any good? They might incidentally undermine it, but that's fundamentally different from attacking it as you put it. But again this is just semantics.

[TheStinger]

well in relation to teh pound (not the biggest influence i grant you) the dollar is going up partly becasue we are about to spend aproxiamtely the same as the US in our bail out plan and we are ever so slightly smaller.

[Aeson]

There are "benefits" for devaluing the currency... for example, those who export products/services. Of course it's all paid for in the end, but equally by everyone who holds the currency. So you have a segment benefiting, and the whole (or at least most of it) paying the cost.

The Fed did this for much of last year, certainly knowingly, and perhaps even that was (at least part of) their intended effect. Japan had been doing it for almost a decade.

[Vanguard]

Originally posted by Thue

The dollar and oil are (somewhat) negatively correlated. When oil goes up the dollar falls. When oil falls the dollar rises.


Why?

Because oil is still mostly priced in dollars. So when the price of oil goes up, the world creates a large batch of dollars and sends them to oil producing countries. The oil sheikdoms use their dollars to buy euros and yen (because they don't need all those dollars and they want a new Maybach). This causes Euros to go up in price and the dollar to go down.

Vice-versa when oil falls.

[Impaler[WrG]]

I've heard that the dollar rise is simply because people are in need of dollars to repay dollar based dept which are being called in. It has nothing to do with the traditional 'storing value' motivation.