Markets and Economy
OK guru, how come the dollar went up yesterday when it was all over the papers that them EU pieces of shit pulled their dollars out of our banks?
#1 the dollar has turned up because the Fed wants it to turn.
#2 There are a lot of ways to make the dollar stronger besides raising rates.
Example: Let's say that the Eurotrash pulls out a billion dollars. All The Fed has to do is raise the percentage of liquidity banks have to hold in reserves. I don't know how many trillions are in our banks but one tenth of one percent would more than make up for the withdrawl AND would take money out of the system (fewer dollars available) making the dollar STRONGER. Don't believe anything you read in the papers. Their stuff is written by sociology majors and jounalism majors who hate capitalism, hate this country, and hope we go broke. Plus they have to gret their pieces written before the Communist Party meeting after work. THE DOLLAR HAS TURNED UP.