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Originally Posted by admiral  This financial crisis that the whole world is suffering from it , showed clearly and without any doubt , that the US is still the dynamo of the world financial system , and that neither the Euro area or China or Japan is ready yet to take the burden of becoming the new world economical dynamo.
All the problem started from the US , however we have witnessed that the the Euro area and the far east suffered most , which mean that both this areas are not independent and strong enaugh economically and are still reluctant on the US economy to drive their economy.
As for you question as to :" if the melting global stock market is helping the dollar or not ." i really dont know , what i know is what the charts are indicating about the trend and direction of the euro . |
You are very right in your analysis. The bottom line of recent events is that the US has once again taken financial leadership around the world in its hands, and their policy in my view is that they are going for a strong dollar to add to their previously battered credibility and strength (wahra).
Most European and emerging markets suffered much more, the American people lost a lot (call it collateral damage), but when all is said and done, the American government will come out stronger than ever. Look at it as a war that was won on most of your enemies without firing a single shot. The American people collectively had to lose 10-15-20 pct of their wealth but won a war without offering a single martyr. The money which evaporated from people's pockets all over the world is being replaced by printing new ones. The only difference is that now it is in a different pocket. It has simply changed hands.
As to the charts, I realize that you have studied them over long periods of time, which in my view is correct due to the sky high volatility which you would note if you look at shorter spans of time. But I believe that in this instance charts are not important as this is a one-off situation, a once in a lifetime event.