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.
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 ?
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. SM
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?
ffrate and $ charts provided by: http://www.mrci.com/pdf/charts.asp http://www.economagic.com/em-cgi/charter.exe/fedstl/fedfunds ctrl/L for fullscreen
Wow thanks Wallace, I cant see much correlation between the two, from 95-2000 fed funds stayed in a tight range as the dollar took a moon shot, must have been the fiscal policies of the clinton administration