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Jacob Mei
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Posted - 2008.10.17 17:31:00 -
[1]
To quote Bender on this occasion USD: "I'm back baby!"
Google Finance chart
I find this rather interesting in that the USD has made such a climb back in value during the global financial crisis (I suppose though that is to be expected considering how much USD was used in the bailout), especially when you look at the previous year of a gradual decline in value. Though the Euro is still considered the standard it only out paces it now by about 26 cents.
If this keeps up European subscribers can hear us yanks complain about how they get to play Eve for less again. 
Anyway, anyone thing that this is indeed thanks to the bailout or was it just coincidental timing?
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To borrow a phrase:
Players who post are like stars, there are bright ones and those who are dim.
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Against Miracles
V I R I I
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Posted - 2008.10.17 18:18:00 -
[2]
I have only limited interest and knowledge in financial matters, but it would seem more likely that the bailout will weaken the dollar. I am assuming that US is forced to just print large portion of the bailout. It will bring the value of the dollar lower, but it will take time, several months popably, before we will see the full effects. By value I mean what you can buy with your dollars. Dollar might seem to be ok compared to other currencies, but that is because everyone has gotten crap on their face in the current turmoil.
The increase in dollar value compared to other currencies could also be the result of some investors thinking the dollar is a relatively safe place to put their money in the global crisis. As we all know US is not the only place to suffer from all this turmoil, so for some it might seem like a relatively safe place to put their money. Depending how things develop this trend might change.
Anyone who actually knows about this stuff feel free to correct and educate me.
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Pwett
Minmatar
QUANT Corp.
QUANT Hegemony
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Posted - 2008.10.17 19:59:00 -
[3]
One last time:
USD Value tied to inflation.
Even with the 700B bailout, more than 10x that was evaporated as the Stock Market bottomed out.
Money Supply Down = deflation / disinflation = Dollar Value up.
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Pwett
CEO, Founder, & Executor
<Q> QUANT Hegemony
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Cmdr Sy
Appetite 4 Destruction
The Firm.
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Posted - 2008.10.18 16:05:00 -
[4]
Edited by: Cmdr Sy on 18/10/2008 16:06:21
Bailouts tend to be inflationary and depress currency value. However, the deflation we are seeing is far too strong for the interventions attempted so far, and with so much debt USD-denominated, the US dollar index is recovering. This trend will continue in the absence of outright printing on a large scale. Cash is king, ladies and gentlemen.
By the way, you can observe a similar trend in Yen.
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