The dollar is declining, could that be a good thing?

Discussion in 'Economics' started by RGLD, Aug 30, 2020.

  1. Troll? You obviously don't know "come here" from "sic 'em".


    * I recon your query was sincere, though thoroughly uninformed.
     
    #11     Aug 30, 2020
  2. RGLD

    RGLD

    ok
     
    #12     Aug 30, 2020
  3. zdreg

    zdreg

    No country has ever depreciated their currency with the result being economic success. Look at the record of South American countries with their successive devaluations.
     
    #13     Aug 30, 2020
    Relentless likes this.
  4. Relentless

    Relentless

    This time will be no different.
     
    #14     Aug 30, 2020
  5. bone

    bone

    It means that the ECB is really F***** now. Draghi went really negative rates to devalue the Euro against the Dollar - and now Lagarde has nothing. No bullets.

     
    #15     Aug 30, 2020
  6. socool

    socool

    Depending on whether it is a plus or minus for other countries.
     
    #16     Aug 31, 2020
  7. SunTrader

    SunTrader

    ECB went sub zero, not for a external trade competitive depreciation reason, but to encourage internal spending/consumption and not saving/investing.
     
    #17     Aug 31, 2020
    piezoe likes this.
  8. piezoe

    piezoe

    Right, not that simple. A significant contributor however is the very easy, current, money policy of the Powell led fed. This has pushed already low interest rates to rock bottom levels, and in turn has been followed by, among other things, a devalued dollar and price inflation, including upward pressure on equity prices. Small inflationary effects on the equities market may be amplified by human emotion, resulting in a market that prefers to be irrational.

    Between the financial crisis and the Covid pandemic, the Powell led fed began selling bonds, draining bank reserves and driving up interest rates. That effort was short lived however, as its leader Powell became the subject of derogatory tweeting by "the dear leader." The fed responded amicably, and with advent of the pandemic, despite it's existence being unacknowledged by the dear leader, promptly reversed course.
     
    #18     Aug 31, 2020
    SunTrader likes this.
  9. piezoe

    piezoe

    That would be of course a negative wholesale rate, the rate banks pay for the money they lend. The retail rate,i.e., what you would pay to borrow, will of course remain small but positive.
     
    #19     Aug 31, 2020
  10. SunTrader

    SunTrader

    Yes the virus has been politically weaponized such as referring to it by the name of the city it was first discovered in, unlike how all the medical and scientific communities around the world refer to.
     
    #20     Aug 31, 2020