posted on Aug, 8 2011 @ 09:23 AM
reply to post by Skerrako
the dollar will strengthen as the stock markets drop. This is normal. When the markets go down, it's because more people are selling than buying.
In a downward trend, like this, the folks selling are, basically, saying they don't have faith in the stock market. so, where do they put their
money? In instances like this, they are, usually, holding the cash. This indicates a consensus that the dollar is stronger than the markets, thus,
the dollar goes up in value.
Unfortunately, as the dollar increases in value, the debt we are saddled with becomes more expensive, making our economic outlook bleaker.