Sun 16 Mar 2008
Global Market as Voting Machine
Sunday, Mar 16th, 2008 at 4:37 pmCategories: Economics; United States
Posted by Administrator
Global markets are “a voting machine. And they vote whether or not they believe in the value of this currency.”

“Think of the dollar as another commodity,” said [Chris] Farrell. “It’s worth less. Therefore you’re gonna try and charge more to make up for the decline of its value.”
… The global markets are operating on the fundamentals of the economy, but according to Farrell, they also operate on a psychological level.
“They’re a voting machine. And they vote whether or not they believe in the value of this currency. What we’re dealing with right now is we’re right on the edge where the international capital markets are saying, ‘We don’t trust this currency anymore, we don’t think it should be the world’s currency,’” said Farrell.
- Jason DeRusha @ wcco.com: Link.
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