Quote:
Originally Posted by Randomstudent
That's right and not only that there isn't a commodity that can take its place either since both gold and oil declined, meaning people were more willing to ditch those for margin calls then they were willing to ditch T-Bonds.
The USD is still the utterly dominant currency in the world and with Europe facing a sovereign debt crisis and the Yen and Remembi loosely pegged to the dollar there are no challengers to that dominance.
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You are over analysing the drop in gold and oil. Both of them had margin requirements tighted which pushed people out of their positions. its not that people wanted out, its that they couldnt cover their margin calls.