[lbo-talk] Why is the U.S. dollar regarded as a safe haven.

[ken hanly]

One of the reasons given for the strength of the US dollar is that it is regarded as a safe haven. I can see that people might avoid currencies such as the euro because of the decline in economic prospects there and also in other countries which have declining currency values but why would investors not prefer gold or purchasing companies which are dirt cheap in many case rather than buying US dollars. What makes people think that it is safe?

  The U.S. economy is in very bad shape and the debt is ballooning. Why buy the U.S. dollar?

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