Comments on: Fed’s Thursday statement the key to US concerns http://www.crikey.com.au/2009/11/02/feds-thursday-statement-the-key-to-us-concerns/ now with extra source Sun, 12 Feb 2012 06:22:59 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: John Bennetts http://www.crikey.com.au/2009/11/02/feds-thursday-statement-the-key-to-us-concerns/#comment-43826 John Bennetts Mon, 02 Nov 2009 12:42:42 +0000 http://www.crikey.com.au/2009/11/02/feds-thursday-statement-the-key-to-us-concerns/#comment-43826 Scott, it might well be the reverse. Unemployment rises and the future appears to be no betterthan the present. Better bring the grrenbacks home to USofA. Other nations may also be part of a flight back to greenbacks, for reasons similar to the rise of the $US early in the collapse, as investors adopt a wait and see attitude by parking their funds in a currency which is acceptable everywhere, which the $A is not. Hence a couple of cents slide. Nothing to worry about, but nothing to welcome, either. Scott, it might well be the reverse.

Unemployment rises and the future appears to be no betterthan the present. Better bring the grrenbacks home to USofA.

Other nations may also be part of a flight back to greenbacks, for reasons similar to the rise of the $US early in the collapse, as investors adopt a wait and see attitude by parking their funds in a currency which is acceptable everywhere, which the $A is not. Hence a couple of cents slide.

Nothing to worry about, but nothing to welcome, either.

]]> By: Scott http://www.crikey.com.au/2009/11/02/feds-thursday-statement-the-key-to-us-concerns/#comment-43729 Scott Mon, 02 Nov 2009 04:08:37 +0000 http://www.crikey.com.au/2009/11/02/feds-thursday-statement-the-key-to-us-concerns/#comment-43729 Isn't this a vote of confidence in the US economy? GDP grows so people want to invest in the US again (and potentially gain a bit of dosh from increased interest rates). Hence demand for US currency increases as world investors convert forex to USD and buy into US treasury bonds (raising the price of the bonds due to increased demand but also lowering their yields)? I don't think it's all doom and gloom. Isn’t this a vote of confidence in the US economy? GDP grows so people want to invest in the US again (and potentially gain a bit of dosh from increased interest rates). Hence demand for US currency increases as world investors convert forex to USD and buy into US treasury bonds (raising the price of the bonds due to increased demand but also lowering their yields)? I don’t think it’s all doom and gloom.

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