Can someone explain this to me - US government
The US government has been printing so much money recently yet the dollar is still getting stronger (relative to Euro). How is this possible? Simple supply and demand would explain that it should be devalued. Whats going on?
I don't know for sure, but things aren't all that great in Europe right now either...
Current sentiment is that the US is the lesser of the evils right now and the safest place to be relative to the rest of the world. Supply may be up but so is demand.
Flight to Quality; Dollar is more safe than more marginal currencies. Also, things aren't looking too good outside US, either.
Flight to quality it is... There are writedowns and bailouts happening all over the world. The US gov't debt (i.e t-bills) are considered relatively safer bets...therefore the demand for USD is up.
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