cash is king now and the US bonds are as good as cash whereas the bund is not so. whilst the yen is affected by unwinding carry trade.
________________________________ From: Laurence Shute <[EMAIL PROTECTED]> To: Progressive Economics <[email protected]> Sent: Saturday, October 25, 2008 6:23:02 PM Subject: Re: [Pen-l] Why is the U.S. dollar regarded as a safe haven. ken hanly wrote: > But then isn't the Japanese Yen appreciating vis a vis the US dollar? It is > not third world but developed world currencies that are really being hit such > as Australia, New Zealand, and Canada as well as European countries and also > Iceland the best place in the world to live according to a UN survey. I thought so too, but last night, on the Bill Moyers program, James Galbraith argued: > BILL MOYERS: What are the negative effects of a soaring deficit? > > JAMES GALBRAITH: Well, the one thing I would have worried about is that we > might not find lenders who are willing to provide funds to the U.S. > government, that the Chinese or the Japanese might decide that they would > rather be in some other currency and that we'd then have trouble with > inflation. But that's not going to happen. > > It's not going to happen because, as it turns out, the major alternative, the > euro, simply isn't viable as a reserve asset for the rest of the world. It's > the dollar or nothing. So the United States basically can finance itself to > the extent necessary to deal with this crisis. And I'm right now quite > sanguine about that, quite confident that we won't face a problem. > So, what to make of this? Larry Shute _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
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