Quote:
Originally Posted by Cowperson
How does that scenario explain the strength of the USA dollar, destroying all other currencies, including Canada's, through that time frame?
You're talking about Americans switching American dollar assets into a different American dollar asset.
The Japanese Yen, if I remember correctly, was also exceptionally strong in that time frame.
Essentially, for that to happen in both instances, you need strong net inflows of capital from outside of those countries, an abandonment of overseas currencies in favour of places considered safe.
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So you are saying foreign investments were diving into USD and TB's because of confidence in the USD? I recall hearing something different, on the news (using a another dollar as standard), that the non-confidence in the equity market was driving up TB's et al.