These are uncertain times.
But one suspects the markets are made more volatile with VHNWI (Very High Net Worth Investors) BUYING & SELLING CURRENCY in HUGE QUANTITIES.
Is this DANGEROUS ?
You bet it is...
Because a countries' currency is the very basic UNIT OF ITS ECONOMIC HEALTH.
Currency trading is based on the following premises :
Currency prices are dictated by supply and demand. That is, if there is a huge demand for, let's say, the Euro (which I am advising others to buy), obviously it jacks up the Euro price. You might even have a Euro : Dollar ratio that is not 1.2 times the actual value.
When the demands cannot be met, the price for that currency goes up.
The opposite is true.
The most intrinsic fact is that a currency of a country is a reflection of the economic health of that country itself.
Which brings us to the trillion $ question : What is the exact state of the U.S. economy ?
When Bill Gates decides on selling all his U.S. $ and buys into the Euro....is it mere speculative buying, or is the U.S. economy really falling into a quagmire ?
