While the Fed's announcement on 3/18 that they would buy long-term US Treasuries was, for all intents and purposes, a devaluation of the dollar, the market seems to want no part of it. After an initial two-day selloff, the US Dollar Index has already regained 80% of the decline.
Why doesn't anyone understand that it's economic Policy that dictates the dollar?
The "Money Printing" from 2000-2007 was nonexistant, and the dollar was Beaten Like a Seal. Now that the United States is finally facing it's economic challenges and the dollar is in an Uptrend.
Posted by: Eric Davis | April 01, 2009 at 10:53 PM