Global Economy Crisis Chatroom

[Mr Khan]

HappySqurriel said:

theprof00 said:
This thread is hilarious. US currency dropping like a stone.

I'll see you here in two years, then. And I'll bet you 1000$ dollars that you're wrong.

Yeah, that's such a good bet based on the past ... After all, the Australian Dollar, Canadian Dollar, Yen, and Swiss Franc have performed so poorly against the American dollar for the past decade; and the fact that the only currencies performing as poorly as the American Dollar (Euro and British Pound) represent regions that are in dire economic straights is not a bad sign for the American Dollar.

The Yen's strength is due entirely to currency speculation. Japan has been trying to deflate the Yen for years, interest rates have been effectively at zero here since the turn of the century and they keep applying expansionary policies, the problem is that investors are determined to believe that once the crisis is over, they can make a killing if they sell off Yen assets right before the dollar/Pound/Euro begin appreciating again (sell 75 million yen for 1 million dollars, but then see that million grow to a higher value comparatively)

The Yen simply has nowhere to go, because interest rates are alread at zero. The dollar, however, is fixed for a turnaround.

The Euro will likely continue to be in trouble