long term the $ is doomed anyways so why should anyone care. money aggregate figures are not published no more because the feds are printing non-stop and full aware it will continue to devalue...they just dont want the public and foreign investors to fully realize how bad it is and will get. that's all.
the dollar started its decline with the creation of the fed. the inflationary bias of the dollar also started with creation of fed. read the comments from bitstream. interestingly there were no comments.
They will go to war with Iran, get the controll on oil and stop Iran from selling oil for Euros .This way the USD will raise .
Just like Iraq! We can not go around starting wars just to defend our currency. If we weren't in such hock this would not be a problem. America needs to stop borrowing so much money and start saving for the future.
I would argue that we cannot LOSE wars that we start to defend our currency, but will not do so further so avoid this thread from being moved to chit-chat.
The US has no need to support the dollar because Asia does this. It is catastrophic to them if the dollar drops because it chokes their export driven economies. The FED doesn't play the currency game unless a drop is so fast that it is perceived to be inflationary. Then they might raise rates. It has to be a BIG drop however. And fast. Slow erosion will lead them to do nothing, unless they actually see inflation. The FED has two jobs and two jobs only: 1) promote steady economic growth. 2) control inflation (keep it at 3% or less long term). Currency manipulation only enters the picture if it affects #1 or #2, and then only as a last resort.
Exactly. The fed has stated over and over again that they are worried about inflation, they did not bail housing out and they won't bail the market out. Besides a weak dollar gives us the edge in exports, China won't have anyone to unload their products on if they dump our currency.
Its no problem if its doomed. They can always print more. And if people don't like the old ones, they can print newer, better ones, or even ones that are coins that look like gold. Pretty soon they'll need to make them out of sand or clay so the materials won't cost so much.
How is this huge increase in money supply not creating inflation? As a student, I am being taught that inflation has purely monetary causes, so there should be inflation, lots of it, how come there isnt? (not a rhetorical question, I honestly don't know.. so I hope someone can clarify)