SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : View from the Center and Left
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: KyrosL who wrote (46521)1/22/2008 11:10:27 AM
From: koan  Read Replies (1) of 542633
 
The dollar has been up because of the "flight to quality" i.e. as the world stock markets were selling off the only practical place to put huge amounts of money is the dollar.

But here is the crux of the feds delima: who wants to hold dollars as it both falls in value and the interst rates the US pays fall. The dollar is falling faster than the interest rates pay, so it is a net loss for anyone holding dollars like most of the world. Todays fed cut just greatly exacerbated that problem.

But in the long run this equation i.e. feds cutting will not work out. Which is exactly why the feds have been reticent to cut. The fed funds rate will also greatly exacerbate inflation.

Having said that, I have no idea how this all plays out-lol. Except it will not be pretty.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News