Troll? You obviously don't know "come here" from "sic 'em".
* I recon your query was sincere, though thoroughly uninformed.
* I recon your query was sincere, though thoroughly uninformed.
The dollar is declining, could that be a good thing?
- Thread starter RGLD
- Start date
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.
This time will be no different.
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.
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.
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.
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.