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Old 01-02-2019, 10:32 PM
 
812 posts, read 447,366 times
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Quote:
Originally Posted by aridon View Post
I'm going to regret even poking my head into this but something is bugging me..

Strong dollar, compared to what exactly? When you answer this, please inform me what you are comparing the dollar against and if you feel the dollar was weak vs this and in what time period are you talking about.

Answer that because I'm genuinely curious what you are going on about.
FED-led dollar devaluation has been robbing Americans of purchasing power ever since the FED was created. The FED should have begun raising rates and making us dollar stronger in 2001, when the last Business Cycle ended. Instead Bernanke decided to make our currency weaker and seduced us with low interest rates to take on more debt. The entire period since 2001 was supposed to be devoted to limiting and reducing debt. The Bernanke Mandate was to protect existing debt and encourage more. QE deflated the Dollar so that foreign markets could rise, rise, rise. Meanwhile, Americans had less purchasing power because their Dollar was being sacrificed for headlines.
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Old 01-02-2019, 10:42 PM
 
2,307 posts, read 1,245,659 times
Reputation: 4764
Quote:
Originally Posted by C2BP View Post
FED-led dollar devaluation has been robbing Americans of purchasing power ever since the FED was created. The FED should have begun raising rates and making us dollar stronger in 2001, when the last Business Cycle ended. Instead Bernanke decided to make our currency weaker and seduced us with low interest rates to take on more debt. The entire period since 2001 was supposed to be devoted to limiting and reducing debt. The Bernanke Mandate was to protect existing debt and encourage more. QE deflated the Dollar so that foreign markets could rise, rise, rise. Meanwhile, Americans had less purchasing power because their Dollar was being sacrificed for headlines.


Figured as much, you didn't answer a single question.
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Old 01-02-2019, 11:10 PM
 
812 posts, read 447,366 times
Reputation: 1206
Quote:
Originally Posted by aridon View Post
Figured as much, you didn't answer a single question.
What is that you don't understand??? Interest rates needed to be raised beginning in 2001, not lowered. The FED spent trillions of dollars stolen from the future to buy bonds to keep interest rates and the Dollar from rising. Japan and the EU did the same thing.

Keynes wrote in 1920:
Quote:
"Lenin is said to have declared that the best way to destroy the Capitalist System was to debauch the currency."
Has the Greenspan-Bernanke-Yellen team ever read this quote from Keynes? Has it been their intention to destroy the Capitalist system? Do they really grasp the possible repercussions of what they have done?
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Old Yesterday, 03:01 AM
 
Location: Thailand
5,182 posts, read 2,468,409 times
Reputation: 9516
Quote:
Originally Posted by C2BP View Post
What is that you don't understand???
He doesn't understand why you cannot respond to his question about why you keeping talking about the strong/weak dollar the way you do, instead of answering it you just repeated your same precanned cut&paste speech. Here I'll show you what he wanted to know:

"Strong dollar, compared to what exactly? When you answer this, please inform me what you are comparing the dollar against and if you feel the dollar was weak vs this and in what time period are you talking about."

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Old Yesterday, 03:33 AM
 
812 posts, read 447,366 times
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Quote:
Originally Posted by lieqiang View Post
He doesn't understand why you cannot respond to his question about why you keeping talking about the strong/weak dollar the way you do, instead of answering it you just repeated your same precanned cut&paste speech. Here I'll show you what he wanted to know:

"Strong dollar, compared to what exactly? When you answer this, please inform me what you are comparing the dollar against and if you feel the dollar was weak vs this and in what time period are you talking about."

II actually responded twice . I don’t understand why both of you can’t understand my response. It’s very simple Lieqiang, I want the strong dollar and stronger America. I want to see weak Asia and weak Russia. We are entering an era of higher rates and a stronger Dollar and cheaper prices generally speaking. We need lower prices, in housing, in medicine, in education, in food, it transportation. The strong Dollar will give us that. It will also give us lower prices for commodities.

God bless strong US dollar!!!
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Old Yesterday, 09:22 AM
 
8,479 posts, read 3,610,093 times
Reputation: 1657
Quote:
Originally Posted by C2BP View Post
II actually responded twice . I donít understand why both of you canít understand my response. Itís very simple Lieqiang, I want the strong dollar and stronger America. I want to see weak Asia and weak Russia. We are entering an era of higher rates and a stronger Dollar and cheaper prices generally speaking. We need lower prices, in housing, in medicine, in education, in food, it transportation. The strong Dollar will give us that. It will also give us lower prices for commodities.

God bless strong US dollar!!!

A strong (comparatively) USD is good for some things, bad for others. In general good for imports, bad for exports.

There are so many things that influence the value/strength of the USD:

50 Factors that Affect the Value of the US Dollar – Currency Trading.net

But this is all relative to the rest of the world. And not night/day, but gray, and gray among thousands or more goods and services traded.

Unless you're talking of War/isolationism, or a some (crazy) sudden systemic USD policy change unrelated to the rest of the world.

Because we don't normally set policy based on those extremes. To make any sudden move against the world would be extremely disruptive for all concerned.

Yours would be very disruptive, contractionary and austere. Severe and unnecessary IMO today, whilst we enjoy more normal economic times. The pain could last for years easily. Why? So eggs are again 10 cents a dozen?

IMO our standard of living is more important than USD pricing. And we have a much higher std than 106 years ago. Higher Std of living should be our goal, not some lower CPI.

The whole modern and successful world generally and calmly inflates over times. IMO we should continue to go with the flow, barring the USA experiencing some Black Swan event, as in the above. And deal with our middle class woes in other ways.
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Old Yesterday, 09:46 AM
 
336 posts, read 173,518 times
Reputation: 421
Quote:
Originally Posted by C2BP View Post
II actually responded twice . I donít understand why both of you canít understand my response. Itís very simple Lieqiang, I want the strong dollar and stronger America. I want to see weak Asia and weak Russia. We are entering an era of higher rates and a stronger Dollar and cheaper prices generally speaking. We need lower prices, in housing, in medicine, in education, in food, it transportation. The strong Dollar will give us that. It will also give us lower prices for commodities.

God bless strong US dollar!!!

You keep talking about strong dollar/weak dollar but never specify what you are comparing it against. Dollar is a currency, not a moral value that can be strong/weak in a vacuum (heck, even moral values can't move in a vacuum). Are you comparing dollar to euro, yen or yuan? If so, all of the central banks in other countries also devaluated those currencies during our QE. So, in relative terms, dollar was not devaluated much.
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Old Yesterday, 10:16 AM
 
8,479 posts, read 3,610,093 times
Reputation: 1657
Quote:
Originally Posted by Bp25 View Post
You keep talking about strong dollar/weak dollar but never specify what you are comparing it against. Dollar is a currency, not a moral value that can be strong/weak in a vacuum (heck, even moral values can't move in a vacuum). Are you comparing dollar to euro, yen or yuan? If so, all of the central banks in other countries also devaluated those currencies during our QE. So, in relative terms, dollar was not devaluated much.
If we raise the interest rate return on our Treasuries to 20%, the world of course would love to own that debt. But we would not want to issue any more debt at such a high rate. So I guess our national debt would not grow, or so so fast. And if one dwells on numbers and not standards of living that might sound great. Especially if you are a libertarian.
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Old Yesterday, 10:45 AM
 
812 posts, read 447,366 times
Reputation: 1206
Quote:
Originally Posted by Bp25 View Post
You keep talking about strong dollar/weak dollar but never specify what you are comparing it against. Dollar is a currency, not a moral value that can be strong/weak in a vacuum (heck, even moral values can't move in a vacuum). Are you comparing dollar to euro, yen or yuan? If so, all of the central banks in other countries also devaluated those currencies during our QE. So, in relative terms, dollar was not devaluated much.
Bp25, I hope you understand that Ben Bernanke started the currency devaluation in 2008, with QE, ZIRP, and ULBB - Great Britain followed quickly - one can argue that China's peg to the Dollar was also a form of a currency devaluation and war. It’s normal that once we started a currency war, then other nations had to respond. When I say strong dollar I mean higher interest rates that make the dollar strong. Low interest rates make our dollar weak. Everything is priced in US Dollars.
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Old Yesterday, 12:26 PM
 
8,479 posts, read 3,610,093 times
Reputation: 1657
Quote:
Originally Posted by C2BP View Post
Bp25, I hope you understand that Ben Bernanke started the currency devaluation in 2008, with QE, ZIRP, and ULBB - Great Britain followed quickly - one can argue that China's peg to the Dollar was also a form of a currency devaluation and war. Itís normal that once we started a currency war, then other nations had to respond. When I say strong dollar I mean higher interest rates that make the dollar strong. Low interest rates make our dollar weak. Everything is priced in US Dollars.
https://www.macrotrends.net/1329/us-...storical-chart

Interest rates are but one important factor in supporting the value of the USD.

And they are generally a reaction to, not a cause of inflation.
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