Machiavelli999

Just How Much Can the U.S. Government Guarantee?

bearfund,

You are such a fool. The funny thing is I read that the Bush administration has engineered the fall in oil prices as well to help McCain.

You should read a little about the history of government intervention in the currency market. The effect is short and never this dramatic. And even if this was what they were planning, why would they keep it secret? It would be in their interest to let the public know about the intervention, because just the news of the government intervening would lead the dollar higher.

The reality is that the dollar has been greatly undervalued against the currencies. Remember those other currencies are also fiat currencies (so is every currency in the world) and they too print their money and borrow and are facing deficits. In fact, Europe and UK might be faced with a more severe slowdown than even in the US. So, relative to their currencies, the dollar is undervalued and its rally is more than justified.