Economic shift under way

Discussion in 'Economics' started by myminitrading, Jul 26, 2006.

  1. So what happens if the Fed pauses at the next meeting, what happens to the US Dollar?

    This is quite a pickle. Maybe the jobs report will be a blow out next week and the can raise rates again. I am real worried about our currency.
  2. Not sure what you're worried about Myminitrading given how far the $'s fallen, unless you think it'll drop well below 80.

    Does the term stagflation describe the 'economic shift under way' that you refer to ?
  3. Cool attachment. Looking at the dollar index, and expecting a devaluation caused by going off the gold standard, the dollar looks like its where its supposed to be, showing a gradual decrease over time as you'd expect with a fiat money.

    Folks need to understand that there are disadvantages to a currency if it gets too strong, like deportation of jobs and low exports.

    I'm not a gold bug, but I'm a coin collector and during the '01 and '02 period I was collecting foriegn gold coins and I couldn't believe how cheap they were...guess I was right. Too bad I sold most of them too soon. Ah well.

  4. I would like to overlay the fed funds rate over that chart. I am just curious has the dollar been this low at the end of a rate tightening cycle.

    What would the consequences be is it did break 80?
  5. Why be worried? Be diversified out of the dollar.