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To: robert b furman who wrote (194612)1/21/2016 10:26:45 AM
From: 30 Years Plus2 Recommendations

Recommended By
isopatch
kidl

  Read Replies (1) | Respond to of 206178
 
Only in a completely closed system can debasing your currency make you more competitive. Canada for example imports about 75% of its machinery from the US or Europe. Any business that need to retool has seen a 100% increase in the cost of that machinery as compared to five years ago, just on exchange rate alone.

It's all a farce. I'll say it again - tenured economics professors are running the financial system.



To: robert b furman who wrote (194612)1/21/2016 10:38:23 AM
From: Elroy Jetson1 Recommendation

Recommended By
linhtu

  Respond to of 206178
 
QE as practiced by the Fed does nothing the lower the value of the US Dollar, as markets have noticed.

The Fed has merely made extremely low-risk assets unavailable to the market place, which supports the price of lesser quality assets. After QE stopped it took a while to see the decline in asset prices we're seeing now, but cash is the only alternative, so it remains to be seen how self-limiting this decline will be.

Only bilateral currency swaps reduce the value of the two currencies involved - and the Fed has been surprisingly inactive on this front, after being quite active in this area during the Asia Crisis.



To: robert b furman who wrote (194612)11/11/2019 8:26:12 AM
From: elmatador  Respond to of 206178
 
It is possible—even probable—that QE was only effective as a mechanism to accentuate the shale boom through the exchange rate.


nationalinterest.org

However, given that the goal of QE was to push money out of safe investments and into riskier areas of the market, one could conclude that QE encouraged money to flow into emerging markets and commodity derivatives which supported high oil prices, and released a flood of capital on the Texas oil industry above and beyond what the actual market forces would have dictated


pboilandgasmagazine.com