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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (132671)	4/3/2013 9:57:02 PM
From: RetiredNow	Read Replies (1) \| Respond to of 149317

Yep. You had an oxymoron in your post, though. If interest rates stay low...AND the dollar gets stronger? Those move in opposite directions. Fiat dollars are debt. The creation of dollars creates debt. When dollars are created they are used to buy debt, which lowers interest rates. Rates are held low artificially, not because the free market feels the US debt load and economy are sound. So the bottom line is that if the interest rates stay low for too long, it will kill the dollar. In fact, the White House has stated they want to weaken the dollar to spur exports...in their words. Unfortunately, killing the dollar kills purchasing power for the 99%, who already have 50 million below the poverty and growing at an alarming rate and an elderly population who can't live off their savings and are getting zero interest on their savings. This economy and our financial system is in the mother of all catch 22's and it's in a terminal stage now. The game won't go on much longer, before something breaks. All it needs now is a catalyst to spook the herd. And if timing couldn't be worse, North Korea is going off the deep end. Will that end up a shooting war? God I hope not.