Why would you say that? I think increasing taxes is great. A lot of harm has already been done, but reducing the government deficit should help the US credibility issue in the future, right? Also - and correct me if I'm wrong - US income tax rates ...

What's with the US dollar?!

Quite alarming news. As the media is picking up on this, I believe things will be moving fast the next months. I can't imagine an Asian country would be wanting to get further involved in US debt anymore. Reinhart and Rogoff find that when ...

What's with the US dollar?!

Who is to blame?

What's with the US dollar?!

For someone who doesn't know a lot, you have an amazing equity curve!

Why do you visit Forex Forums?

I visit forums because I enjoy threads like these

Why do you visit Forex Forums?

Yes, you're right. Politicians will do their best to maintain the euro. However, how will the Portugese and Spanish people react when Brussels starts dictating their country? Note that this is a precondition for receiving money from the rescue fund: ...

What's with the US dollar?!

Indeed, inflation makes debt less costly. This is the major point. I just though of it, that as most of the European debt is covered by other European nations, deflating your way out of debt is the same as transferring the burden from the PIIGS to ...

What's with the US dollar?!

Yes, the model is based on the inability of a market maker to discriminate between informed and uninformed traders. I haven't read Olser's paper, but to me it seems quite difficult to distinguish informed from uninformed traders empirically, even ...

How dealers/market makers operate

To be honest, I find this one of the worst generalizations of market behavior ever. I find that there is absolutely no truth in it. In Lyons, you'll read that informed traders indeed impose a cost on market makers. This cost is also known as the ...

How dealers/market makers operate

I don't have empirical evidence, but consider the following. Every commodity, including gold, is a hedge against inflation. The Fed has been pumping the monetary base. Austrian economics suggests that a rise in the monetary base leads to consumer ...

What's with the US dollar?!

Don't you think the rising commodity prices (especially when denominated in dollars) might be a consequence of the Fed policy?

What's with the US dollar?!

I expect EURUSD to reach beyond 1.6 this year, but with all the issues going on in Europe it won't be a straight line upwards indeed. It would help if the ECB would allow a higher level of inflation for this occasion. This would release some of the ...

What's with the US dollar?!

Ah, now many of your comments fall into place. Pretty hard having a discussion with different people employing different definitions So lets just talk about inflation as measured by CPI, as this is what ultimately affects our purchasing power. ...

What's with the US dollar?!

I disagree. Inflation, just as deflation, comes in self-reinforcing cycles, and is naturally unstable by itself. Expectation of inflation causes inflation, just as the expectation of deflation causes deflation.

What's with the US dollar?!

Printing endless sums of money doesn't necessarily cause inflation in the short and medium run. Consider the case of Japan, which has held interest rats near zero for over a decade, and also engaged in QE. Inflation is not only determined by the ...

What's with the US dollar?!

Yes, you don't need a central bank indeed. However, the question is whether boom-bust cycles are created by central banks, or whether they are inherent to the economy. I believe there cycles are inherent to the economy, regardless of the monetary ...

What's with the US dollar?!

Just found a nice quote. "When people no longer believe this, when they realize that the government will go on and on [inflating prices] without any intention of stopping, then they begin to understand that prices tomorrow will be higher than they ...

What's with the US dollar?!

In a gold standard, central banks have no control over money supply, right? Instead, inflation is determined by the level of gold discovery. This means central banks would also lose their ability to stimulate the economy during recessions. The ...

What's with the US dollar?!

I think this is one of the things that is going to change over the next year, and already has started. Over the last decades the USD has been considered a safe haven currency, supported by the fact that it is the reserve currency. The reserve ...

What's with the US dollar?!

I'm afraid there's no single answer to this question. First of all, you need high frequency data to find the maximum spread, and not many people here have access to this data or collect it themselves. Secondly, there are hundreds potential sources ...

Highest spread registered today on EURUSD and GBPUSD