Posted on 12/18/2008 9:28:05 AM PST by TigerLikesRooster
US Dollar Plummets as US 10-Year Treasury Yields Hit Record Lows
Thursday December 18, 8:40 am ET
By David Rodriguez, Quantitative Analyst
strategist@dailyfx.com
A massive flight to quality has left US 10-Year Treasury Bond Yields at their lowest levels on record—further emphasizing extreme risk aversion in global financial markets. Banks and other financial entities unwilling to lend to one another have desperately sought safe haven for funds, and US Government debt has largely been the instrument of choice for many investors. Such flows have not resulted in net demand for US Dollars, however, as we have actually seen the US currency fall substantially against major forex counterparts.
(Excerpt) Read more at biz.yahoo.com ...
Ping!
I need to start using dollar bills instead of toilet paper, much cheaper than Charmin.
History dictates that a fiat currency always fails. Watch it happen to the USD in 2009.
Wow, print money indiscriminately and it loses value. Who could have predicted this?
I agree. The loss of the value of the dollar is due to inflation (i.e. too many dollars in the financial system) rather than investors taking their money out of the US. I mean, where would investors go? Europe, they’re in a bigger hole than us. China, good luck with that pegged exchange rate. Japan, about the same but in Yen.
Well, everytime the Fed cuts the interest rates, they are in effect devaluing the dollar.
True, but as opposed to increasing the money supply, they have been increasing the monetary base as well.
I'm serious!
OK I had to say it, anyway.
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