A achilles28 Oct 7, 2008 #11 Quote from dhpar: USD money supply is shrinking despite fed efforts - therefore demand>supply, i.e. USD strenghtens. as banks start to lend USD will tank. it has less to do with safe heavens imo. More... This makes sense. Loans are getting paid back = money destroyed. Yet banks have tightened lending standards and not loaning out = net money supply shrinkage.
Quote from dhpar: USD money supply is shrinking despite fed efforts - therefore demand>supply, i.e. USD strenghtens. as banks start to lend USD will tank. it has less to do with safe heavens imo. More... This makes sense. Loans are getting paid back = money destroyed. Yet banks have tightened lending standards and not loaning out = net money supply shrinkage.
