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There won't be any more QE. The strong dollar isn't hurting the US economy all that much so it isn't likely to be a factor when the FOMC raises rates. The Fed will raise sometime this year or early next, and don't expect them to lower rates again for years. Before the Fed raises there won't be a shadow of a doubt for them that the economy is doing well and they won't need to backtrack.
By the way, how exactly is China devaluing their currency? It is pegged to USD so the Yuan has actually been strong lately.
The strong dollar is having a negative impact on US corporations that have operations or do business in other nations. It may also be hurting the Chinese economy, for the reason you just mentioned.
Dollar devaluation will lead to inflation. So many people want an increase in minimum wage, or a wage increase of any kind. Lets devalue the dollar to make our employees take in wallet again. More dollars in your wallet that are worth less per unit than last weak. Brilliant economic philosophy!
As far as digital money goes, yet another stroke of genius. Cash is king. Not a check. Not a credit card. Not a chicken (as one would be Nevada politician, once proposed). Just hard cash. I do not like the idea of a cashless society. It is bad for the economy. Now days with all of the cyber attacks and such, you could be Taylor Swift and loaded financially, and overnight, you could become as financially insolvent as MC Hammer.
I say leave it as it is. If you love everything begin digital in your world, knock yourself out, but leave the world of cold hard cash to those of use that prefer that currency. No choice is no choice.
The strong dollar is having a negative impact on US corporations that have operations or do business in other nations. It may also be hurting the Chinese economy, for the reason you just mentioned.
??? Any business selling goods or services to the US but produced elsewhere benefits from a strong US$.
A strong US$ is bad for *domestic* investment and production.
Others are waiting on that to see how that happens.
With options as paying with smartphones, watches and other electronics i think there is a great chance.
You have to understand the danish credit card system to understand this bill. Every resident of Denmark who has a bank account has a Visa Dankort and usually a Master Card tied to their main banking account. The Dankort is a debit card. Overdrafts are not allowed unless you apply; the total amount of your overdraft balance allowed is fixed and limited based on your income, and interest on overdrafts is high - very high. The Master Card must be paid in full at the end of each month. You have no choice. You can't turn your balance over. If you don't pay your bills, the danish ID system makes it possible to have any debt collected from your income. In other words, it's fiscally pretty tight credit.
Since every banking account is in a national data base, and every resident has an ID number stores are simply finding easier computationally to handle credit card payments via card. It also means that stores have no cash on hand - or very little - thus discouraging theft. The government would also like to do away with cash so they can more easily monitor non-registered income and tax it, and then put you in jail for tax evasion for 3-5 years.
So, you see, while it creates a great opportunity for identity theft, it does not represent QE. Since Denmark is not a member of the EMU, it has a central bank and the last I heard they were practicing QE with, among other things, negative interest rates.
With strong dollar thanks to almost every central bank including EU, Japan and China devaluing their currencies FED may feel cornered.
While trying to normalise markets with a rate hike, they will create even stronger dollar.
In normal situations we could talk about another round of QE.
But in this case do you think that is even possible??
Also US economy imho is not doing all that well to support higher interest rates.
While that may give US corporations a chance to buy companies around the world, don't you think it will create bigger trade deficit and all sorts of bubbles??
I couldn't come up with a good solution
The Fed has been devaluing the dollar since 1913. Try buying some 1964 silver coins and see what they cost you. It's pretty much a crime, actually, what they've done.
The Fed has been devaluing the dollar since 1913. Try buying some 1964 silver coins and see what they cost you. It's pretty much a crime, actually, what they've done.
FED may devalue dollar so brilliantly, people wouldn't even realise
No because US is not a major exporter so strong dollar actually benefits consumers. Why punish consumers in US?
LOL! We are the world's second largest export economy behind only China. We are also the world's largest import economy.
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