Comments on: An Unlikely Dollar Ally http://dailyreckoning.com/an-unlikely-dollar-ally/ Entertaining Ideas on the Economy, Markets, Gold, Oil and Investing Strategies. Fri, 10 Feb 2012 22:35:22 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Richard K http://dailyreckoning.com/an-unlikely-dollar-ally/#comment-11869 Richard K Mon, 15 Jun 2009 18:56:44 +0000 http://dailyreckoning.com/?p=16418#comment-11869 The last paragraph sums up the situation with perfect clarity: "Everyone knows the world can’t continue to trade in shells if every time the tide comes in another 300 billion of them turn up on the shoreline. What world leaders are doing is simply protecting the value of their own reserves by trying to pretend the tide won’t come in again." If this is glaringly obvious even to me (a simple and modest wage earner) then why are the world's currency traders apparently competing to buy up every dollar in sight? After all, these folks are all smart, experienced, and rational - right? The last paragraph sums up the situation with perfect clarity: “Everyone knows the world can’t continue to trade in shells if every time the tide comes in another 300 billion of them turn up on the shoreline. What world leaders are doing is simply protecting the value of their own reserves by trying to pretend the tide won’t come in again.”

If this is glaringly obvious even to me (a simple and modest wage earner) then why are the world’s currency traders apparently competing to buy up every dollar in sight? After all, these folks are all smart, experienced, and rational – right?

]]>