But but but, we gotta' have inflation right!? We HAVE to have a weaker dollar. That is part of the Fed mandate...Get to that comfortable 2% inflation target! Can't do that with a stronger dollar!
The US needs to rethink what it is doing with its dollar
- Thread starter themickey
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But but but, we gotta' have inflation right!? We HAVE to have a weaker dollar. That is part of the Fed mandate...Get to that comfortable 2% inflation target! Can't do that with a stronger dollar!
Inflation has nothing to do with currency strength. LOL The strength of a currency is in turn determined by the relative rate of inflation but has no role in causing inflation or not. Saying that having a stronger or weaker currency will result into a higher rate of inflation is the tail wagging the dog.
And besides the Fed never said that we "gotta" have inflation. It's only saying that for the sake of stimulating the economy to speed up economic recovery, it is comfortable with inflation reaching 2% IF it ever reaches that high because economic stimulation often overshoots the "full economy" target and many times causes inflation at least in the interim but having inflation is never the goal nor is it desirable in any way. Gawd! The Fed really needs to work on its communication skill if it's now creating an impression that a 2% inflation rate is now a target. LOL
I thought I read/heard that the Fed's target inflation rate is 2%? I dunno', inflation is a mystery to me.
inflation target does not equal to inflation goal. The fed is not trying to achieve an inflation goal of 2%. It's only allowing inflation to reach as high as 2% for now before it does something. Trust me inflation is bad. Nobody wants inflation. Any country that's ever had hyperinflation in its history or is having hyperinflation right now will confirm this.
THEN WHY DOESN'T THE FED TRY TO NOT ALLOW ANY INFLATION AT ALL?!? OMG IT IS MADDENING!
*pants heavily*
I do not like the Fed.
Ok you should really read more on "Inflation". Inflation is not a switch that the Fed can just switch on or off. It's something that unfortunately happens when stimulation to increase economic growth overshoots. Anyway just read more on inflation and you will understand.
Comment 1 is barely true and insignificant.
If were it true venezuela, zimbabwae and argentina would be kings of the universe. Switzerland, Norway , Singapore have strong currencies and are doing well for years in the trading arena.
Your conclusion is obviously correct. A strong currency forces nations to make their industries more efficient. A weak currency begets further currency weakness and bailouts and less efficient companies.
If you believe that inflation is not over 2% in the US I have a well know bridge to sell you.
By the way what do you smoke? From the way you generally write it must be good stuff.