posted on Aug, 8 2008 @ 09:35 AM
just thought i should mention the american dollar has had it's strongest week in a long time.
the chart below shows you what kind of spike they are getting
interesting to me that the dollar is spiking at the same time everyone reallizes the gov't is using more tax payer money to bailout fannie and
however this is good for lower gas prices, it's funny i just saw an article on why oil is going down, and nobody mentioned the dollar.
seems The ECB's trichet signaled that rate hikes were done, and growth concerns were materializing
which gives the dollar room to "run"
one thing that all fiat currency's have in common i.e dollar, yen, euro, RMB, is that over time , they all fall at different rates, so when one is
strengthing against the other, does not necessarily mean it is stronger, (just sinking slower). This is why the dollar could rally, and commodity's
could get hit hard.
However my opinion is the bernake fed has nightmare's about deflation and they see dollar devaluation as a means to stay away from "it" so i would
suspect bernanke would cut in tandem w/ trichet of the ECB.
[edit on 8-8-2008 by cpdaman]