Well, since oil is imported, should you? You will be buying gas at pumps with dollars worth less . . . the price of oil is determined by imported oil prices.xls177 said:Should we be worried that the dollar will lose more value?
I think you have overstated the case. This devaluing is not necessarily against all goods and services, but against foreign currencies. Of course, since we import so much, the effect on pricing will still be great - without necessarily creating any jobs. The thinking is that a devalued dollar will make our exports look cheaper. Developing economies are screaming bloody murder, and we can expect China, which does not let its currency float, to be taking steps to counter the fed.EJR914 said:Yes, we should be very afraid about the value of the dollar.
1.7 Trillion in monetized debt in and before 2008
850 Billion more by 2Q 2011
2.55 Trillion in monetized debt
Yes that is a problem.
To break it down, economist suggest this will devalue the dollar by 20%.
If you have saved up for your retirement and you had $200,000 in your account. You now have $160,000 in your account, in actual buying power.
Yeah, just as soon as all of those hugely inflated raises start rolling in . . . :righton:Zworley3 said:On the bright side for those of you out there in debt this is great. It is easier to pay back debt with a weaker dollar and inflation.
Belshazzar, when he tasted the wine, commanded that the vessels of gold and of silver that Nebuchadnezzar his father had taken out of the temple in Jerusalem be brought, that the king and his lords, his wives, and his concubines might drink from them. Then they brought in the golden vessels that had been taken out of the temple, the house of God in Jerusalem, and the king and his lords, his wives, and his concubines drank from them. They drank wine and praised the gods of gold and silver, bronze, iron, wood, and stone.moga said:The writing is on the wall.
http://blogs.wsj.com/economics/2010/11/ ... -stimulus/Bernanke said:Although asset purchases are relatively unfamiliar as a tool of monetary policy, some concerns about this approach are overstated. Critics have, for example, worried that it will lead to excessive increases in the money supply and ultimately to significant increases in inflation. Our earlier use of this policy approach had little effect on the amount of currency in circulation or on other broad measures of the money supply, such as bank deposits. Nor did it result in higher inflation. We have made all necessary preparations, and we are confident that we have the tools to unwind these policies at the appropriate time. The Fed is committed to both parts of its dual mandate and will take all measures necessary to keep inflation low and stable.
Case in point.sirkut said:
Oh, and if you reload, it may be a good time to buy stock up on raw materials (for all sorts of reasons), esp. lead.â€œThe Fed is clearly worried that the recovery is taking too long, so they want to be proactive,â€ said Adam Sieminski, chief energy economist at Deutsche Bank AG in Washington.
Malum Prohibitum said:The thinking is that a devalued dollar will make our exports look cheaper. Developing economies are screaming bloody murder, and we can expect China, which does not let its currency float, to be taking steps to counter the fed.
http://sify.com/finance/emerging-market ... cajjh.htmlIn South Korea, the Ministry of Finance and Strategy said it would "aggressively" consider controls on capital flows, while Brazil's Foreign Trade Secretary said the Fed's move could cause "retaliatory measures".
Economy Minister Ali Babacan of Turkey, where the central bank has been buying increasing amounts of foreign exchange in an effort to curb appreciation of the lira against the dollar, said the Fed's policy might backfire.
. . .
Thailand raised the possibility of concerted action to combat the flood of investment dollars that are expected to wash into . . .
Colombia announced last week a slew of measures to help counter the rise of its currency . . .
I could have gone all day without clicking on that link. :|fmlaw1 said:Case in point.sirkut said:
"The Committee finally addressed the fourth question in the charge regarding the implications of a second round of quantitative easing. The member provided a presentation that considered market expectations of QE2 and its impact over the medium- and long-term horizons.New2Atlanta said:Already up 10%. Time to put in some stop loss orders as this will not last more than a few months when things rebalance and the new politics take hold.