gold: warning! warning! warning! /////\\\\\, page-14

  1. 22,691 Posts.
    re: usd: warning! warning! warning! /////\\\\\ Someone sent an email asking whether it is possible by countries' CB's (Central Banks) to buy up USD massively and hence strengthen the dolar.

    Yes, it is; however, when there is a concerted effort to do so or otherwise to sell, the FED is normally involved and coordinates this.

    At any time, the FED may feed USD into the market with the following objectives:

    To obtain foreign exchange.
    To increase the number of printed dollars and if there are enough of these, the USD will fall.

    And if the US is hell bent not to increase the USD value above say 83, they can easily take measures to achieve that. After all, they never run out of dollars.

    The FED and CB's have certain obligations. I need to look further into these.


    Gerry

 
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