Currently with the currency;Over at the Wall street journal they did a piece on the falling value of the dollar compared to currencies around the world; Dollar Continues to Slide
Here is just part of the article;
Currency watchers said while dollar fundamentals remain bleak with the Fed having signaled a new era of ultra-low interest rates and quantitative easing, there has been no major catalyst for Wednesday's sudden and renewed moves lower. Rather, technical breaches of the dollar's post-Fed lows have brought momentum players back onside with the dollar downtrend, while thin trading conditions exaggerate the magnitude of intraday movements for many currency pairs.
WTF?
What do these economist eat for breakfast? Ambiguous biscuits smothered in garrulous gravy hold the brevity?
In layman's terms;
The people that make money trading money do not think the dollar is a good buy. And they are claiming they can't figure out exactly why. They are also saying, because a lot of people are trying to make money on the falling dollar, they hope it looks worse than it really is.
Now, let me explain what is really happening...
The federal reserve cut interest rates to practically zero and the rest of the world feels that the U.S. is simply printing money (which cheapens the value of the dollar). Now when you go to WalMart to buy something, it cost more because China is demanding more dollars for the imports they send here. But you aren't making anymore money to buy those Chinese goods. (see three post down You get nothing) So, you cut back on the dollars you spend, which perpetuates the catch 22 of supply side economics; and the fool's errand of trying to create real value in a service economy.
Good luck with that!
Sorry for the depressing post and the bad link...I'll find some good news tomorrow.
B.G.
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