Dec
09
Why is the USD taking a beating in the Forex market?
Posted by admin under Investing
ej105 asked:
It has been losing ground to the Japanese Yen, Euro, and the British Sterling. What’s the deal? When will this end? This is seriously screwing up my investment strategies.
It has been losing ground to the Japanese Yen, Euro, and the British Sterling. What’s the deal? When will this end? This is seriously screwing up my investment strategies.
December 10th, 2008 at 1:24 pm
usd is in big trouble because the us abuse system is failing americans so they will be emigrating to africa china and australia soooon
December 11th, 2008 at 8:00 am
I will keep this simple, but there is MUCH more to it.
The USA imports hundreds of billions of US dollars more stuff than it exports.
This means that the imported goods are paid for in dollars. This encreases the supply of US dollars held by people in other countries. Simply supply/demand economics will force the price down in terms of exchange rates.
Most analysts and economists think that the US currency will continue to get cheaper as time goes by. So much money is leaving the US that it is thought to be unsustainable, but it will likely keep currency down for a while to come. (My personal guess is 10-20 years, but that is my personal guess based solely on intuition)
Best bet is to not have a strategy that depends on the US currency gaining ground against other currencies.
December 12th, 2008 at 12:19 pm
M3 increased over 8% last year.
The reason the USD is dropping like a sorority girl at a kegger is because the government is making too many of them.