Still Calling it Right -- The Dollar is being Attacked by its Own...

[Fast 0]

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My car goes as far on a gallon of $1.59 gas as it does on a gallon of $4.30 gas. My HDTV shows the same channels as it always did, regardless of the sticker price this week in Best Buy. I can sit as comfortably on my comfy sofa as I could 6 months ago.

Real wealth doesn't just vaporize. Maybe we should all go back to bartering.

Isn't the value of the $ held in part by the value of assets like gold? if so doesn't the overprinting of money devalue the money itself and cause inflation?

That is long since not true. The companies got sick of just making a little money, they needed to make MORE! So they started doing all kinds of crazy things with "money" to make money on money, and it all goes way above what I can understand, the point being that there isn't any tangible association anymore.

~D
Where troubles melt like lemon drops Away above the chimney tops That's where you'll find me.
Swooping is taking one last poke at the bear before escaping it's cave - davelepka

[joedirt 0]

As per your question... inflation is good for debters, that's about it. Most likely though, the assets they're trying to keep high will still fall, while other goods inflate. So while houses and equities deflate, commodities inflate. That's a worst case scenario that is starting to look more realistic.

[Amazon 7]

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That is long since not true. The companies got sick of just making a little money, they needed to make MORE! So they started doing all kinds of crazy things with "money" to make money on money, and it all goes way above what I can understand, the point being that there isn't any tangible association anymore.

The term "fiat money" comes to mind... here is a link... yeah yeah yeah... I know.. but for many in this crowd.. I am considering the audience.

http://en.wikipedia.org/wiki/Fiat_currency

[Gawain 0]

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1MsoPDHjFS4

...and is this the beginning?

...and here...
http://www.ft.com/cms/s/0/4460aa54-cc6f-11dd-acbd-000077b07658.html

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The Fed also said it stood ready to increase plans for hefty purchases of mortgage debt. In response, the interest rate on 30-year mortgages fell to 5.06 per cent, the lowest level since the early 1960s, according to HSH Associates.

The fall in US bond yields triggered by the Fed rate cut came even though the Treasury could issue as much as $2,000bn in debt during the current financial year. Foreign investors hold more than half of Treasury debt.

Someone please tell me how this resembles anything "good"...

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The Fed on Tuesday said it expected to keep rates at ultra low levels for “some time” – further undermining the prospective yield on the dollar. It laid out a framework for creating reserves and expanding the US money supply to fund bigger credit programmes aimed at driving down borrowing costs. But it did not provide details for its unorthodox operations, making it difficult for investors to calibrate what they mean for the supply of dollars.

This is interesting too...I'm not sure I understand this correctly. Is this saying that having more money in the system, while devaluing currency, makes borrowing cheaper?

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!

[SkyDekker 1,465]

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This is interesting too...I'm not sure I understand this correctly. Is this saying that having more money in the system, while devaluing currency, makes borrowing cheaper?

It does, but the problem is that you will have to borrow more money to buy the same item.

[Gawain 0]

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This is interesting too...I'm not sure I understand this correctly. Is this saying that having more money in the system, while devaluing currency, makes borrowing cheaper?

It does, but the problem is that you will have to borrow more money to buy the same item.

Okay, but I don't really see how that makes borrowing cheaper...

These f**k**g @ssholes....

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!

[SkyDekker 1,465]

Now off course there is also a huge benefit to a low dollar. One that can actually really stimulate your economy.

[joedirt 0]

Yeah, more money makes borrowing cheaper in theory. Just like a bigger supply of goods drives down the price of that good. Tha't actually how they lower the fed funds rate. They put more money out there.

I for one can not tell you how this resemble's anything good.

[akarunway 1]

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Now off course there is also a huge benefit to a low dollar. One that can actually really stimulate your economy.

Umm. And drive the cost of labor and goods down so the rest of the world can buy us up even cheaper?

I hold it true, whate'er befall;
I feel it, when I sorrow most;
'Tis better to have loved and lost
Than never to have loved at all.

[SkyDekker 1,465]

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Umm. And drive the cost of labor and goods down so the rest of the world can buy us up even cheaper?

You say that as a negative, but when American goods and services become cheaper, they are more in demand in the rest of the world, which stimulates your national economy.

[kallend 2,106]

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Umm. And drive the cost of labor and goods down so the rest of the world can buy us up even cheaper?

You say that as a negative, but when American goods and services become cheaper, they are more in demand in the rest of the world, which stimulates your national economy.

But how will we afford all those Made in China goodies in Wal-Mart?

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The only sure way to survive a canopy collision is not to have one.