@trent3727 "How is it possible that money is pouring into the US...

@trent3727

"How is it possible that money is pouring into the US economy.e.g. I'm hearing investor pro's are all saying "America is the place to be ."


Foreign Exchange 101: Money doesn't "pour" into the US economy from outside the US. In a FX transaction there is a buyer and a seller. The amount of US dollars in the US economy isn't changed when someone buys dollars, there is just a change in ownership of existing dollars.

Micro Economics 101: The equilibrium price of US dollars in the market changes when the amount of dollars sought by buyers at a given price exceeds the amount available for sale (or vice versa). This does not influence to amount of dollars available in the market. The change in price only influences the willingness of existing owners of dollars to sell at a given price.

Commonsense 101: Just because someone (even a "pro") says that "America is the place to be" doesn't mean that America is necessarily the place to be.

Commonsense 201: The US dollar goes up and down for many reasons which are often driven by commercial considerations independent of a market view on the US dollar. Never automatically assume that a professional FX trader knows what is going on (and never expect him/her to admit they don't know what is going on)...

Commonsense 301: What the hell has any of this got to do with the price of gold?