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Strategies & Market Trends : Currents of Currency -- Ignore unavailable to you. Want to Upgrade?


To: Ahda who wrote (589)5/15/2018 10:19:27 AM
From: Ahda  Respond to of 594
 
The prior chart clearly shows an increasing budget deficit as well as very low unemployment. Goldman mentioned that they felt there would be an increase in rates.

Problem of course budget deficit is depicted in currency exchange rates the larger the nations debt the greater the chance of decreased exchange value in currency .

Increased rates mean that it costs more to borrow money . Increased rates slow down the economy yet the economy needs increased production so it can decrease the budget deficit.

The Gov is running scared, How can the deficit be decreased when rates are increased to stifle growth?

How can an economy be in trouble when the unemployment rate is so low? Question there of wages not meeting costs as for some they are very low hence taxes paid are minimal.
I sure hope people are not using numerous credit cards with a low balance to carry them through.
The stock market is world so it is not necessarily in sync with the US economy which represents the US Gov.