Currents of Currency Message Board

STOCKTALK

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.

Strategies & Market Trends : Currents of Currency

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ahda who wrote (294)	7/15/2014 12:13:06 PM
From: Ahda	of 594

http://money.cnn.com/2014/07/15/investing/yellen-senate/index.html?iid=HP_LN The Federal Reserve has been trying to stimulate the U.S. economy since 2008 by keeping its key short-term interest rate near zero and by buying bonds to reduce longer-term interest rates. Low interest rates are intended to boost borrowing and spending by businesses, consumers and homebuyers, thereby revving up economic growth. Critics argue that the Fed could pump too much easy money into the economy, triggering a bubble or broader inflation. Yellen noted in her remarks that prices of real estate, stocks and corporate bonds have risen but remain "generally in line with historical norms." The figures she uses are changed frequently so one months total is recalculated/adjusted the next month . It makes attempts to steer the economy to avoid a down turn difficult. If I recall correctly easing was set to stop in Oct today it appears no such plan is in motion. People spending power has decreased while increases have been in the stock market. If she could take the time to see some of the new issues valuations it appears USA people and USA stock market have filed for divorce . Thinking from a USA point of view too much currency at market end and too little at the people end increases the probability of decrease of currency value by means of decrease of price in the stock market. Not stated is present world condition that can by means of movement of currency into what is considered more stable markets artificially increase value. China absorbed investment from other areas and the result can be an increase in valuations to such a degree that earnings cannot match the price of the stock. .Financial markets are international where by people who live in countries are local All told this makes the it very difficult to steer the economy of a nation for local figures have very little to do with international impact. International impact has more to do with currency exchange value. Nations adjust currency value by means of exchange however the internal value of currency within a nation always remains the same. Problem being as you steer excess currency does create inflation in some area and can decrease value.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next