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Dollar is dropping like a brick.
Anyone know why?
Edit: nevermind:
http://www.bloomberg.com/apps/news?p...refer=currency
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wow. this is going to get ugly a lot faster than i anticipated. they should throw ben bernanke in jail and dismantle the federal reserve. contrary to what those idiots say on cnbc, a falling dollar is not a good thing.
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your thought process is fairly retarded.
china diversifying holdings ----> bernanke behind bars.
the dollar has been fundamentally weak as an anorexic baby for a long time now...mainly the result of massive global imbalances of savings vs. investment/consumption. the 75bp drop in US IRs only brought the fundamentals in line with reality in terms of the dollar price to other currencies.
further, the USD/GBP moved about .01 from 2.0851 (where i said it would be a good idea to start building a long position ... i.e. short GBP/USD) to 2.096something.
the most affected currency will likely be the euro in the long run since that is where the chinese will probably ship most of their money that they plan to diversify.
also, you should have taken me up on the bet about the dollar being the world reserve currency in a year:
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The dollar is "losing its status as the world currency," Xu Jian, a central bank vice director said...
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and yay yen moving up [img]/images/graemlins/smile.gif[/img] ... price target for that currency vs. the dollar shoudl be 100-105, best case <100
Barron