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What happens if the US Dollar breaks support
- Thread starter myminitrading
- Start date
i respectfully disagree with those who are saying a dying dollar won't affect the U.S. population.
nobody is buying u.s. treasuries. in december for example there was an outflow of treausries. so in order to remain in business the treasury printed off 150 billion and lent it to the fed. this will lead to two things not good for the US consumer 1.) Inflation. there is now another 150 billion floating around the economy created out of thin air. a guy making 40k a year is now buying a 10$ loaf of bread and 2.) Rising interest rates. Eventually the US has to bring in as much as it is spending. Imagine what a 20% interest rate would do to the business climate and housing market? was only in the 80s that this happened previously.
nobody is buying u.s. treasuries. in december for example there was an outflow of treausries. so in order to remain in business the treasury printed off 150 billion and lent it to the fed. this will lead to two things not good for the US consumer 1.) Inflation. there is now another 150 billion floating around the economy created out of thin air. a guy making 40k a year is now buying a 10$ loaf of bread and 2.) Rising interest rates. Eventually the US has to bring in as much as it is spending. Imagine what a 20% interest rate would do to the business climate and housing market? was only in the 80s that this happened previously.
Quote from niceneasy:
i respectfully disagree with those who are saying a dying dollar won't affect the U.S. population.
nobody is buying u.s. treasuries. in december for example there was an outflow of treausries. so in order to remain in business the treasury printed off 150 billion and lent it to the fed. this will lead to two things not good for the US consumer 1.) Inflation. there is now another 150 billion floating around the economy created out of thin air. a guy making 40k a year is now buying a 10$ loaf of bread and 2.) Rising interest rates. Eventually the US has to bring in as much as it is spending. Imagine what a 20% interest rate would do to the business climate and housing market? was only in the 80s that this happened previously.
I agree. A declining $US is something to worry about.
Otherwise, why not just print the dollar like crazy and
be happy and merry. It just does not work like that.
The CPI numbers are probably massaged to look decent, but the seat of the pants feel in paying rent, mortgage, grocery, gas, healthcare, tuition, etc. says otherwise.
The average Joe and Mary have already been affected by the declining dollar / purchasing power.
Brazil has the highest real interest in the world, still after about 4 years and you can not beat the appreciation against the dollar of the Brazilian real - took 4 of them in 2002 to buy a dollar, and now only 2 will buy a dollar.Quote from tyler19:
least everyone knows now that if you want to make money through savings, England is the place to be :\