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How can you deny that Fed has been killing US dollar with ZIRP and QE for all those years. Everyone who understands anything about anything knows this. The basic method the FED uses to inflate global growth is manipulation of the US Dollar. Weakening of the US Dollar, through lower rates, through QE, ZIRP, NIRP, inflates the global debt bubble.
There is no economic recovery Lowexpectations. That is a lie. The economy does not grow when it is dead. And the economy is dead by definition. It died in 2001. It will live again, but not without the Deflation Cycle, which is as vital to the process as is the Business (growth) Cycle.
The FED has two choices:
1) higher rates, stronger Dollar, global deflation;
2) lower rates, NIRP, the death of all currencies, global hyper-inflation, social chaos, civil war, global war, apocalypse; followed by a new world currency system.
Let me guess; you are for option 2, aren't you?
You have failed to provide anything factual to back your stance the fed destroyed the usd
The last big devaluation of the dollar happened when Nixon took us off the gold standard. The result was hyperinflation and the Arab oil embargo. The price of everything doubled and then doubled again. Our current dollar is worth about 10% of what it was worth at the beginning of Nixon's first term in 1967.
Where do you get your inflation figures? The '70's certainly saw onerous inflation, but not hyperinflation or double double. Much of the inflation was cost-push based on your oil.
You have failed to provide anything factual to back your stance the fed destroyed the usd
using different colors doesn't help your post
Oil prices rose from $20/barrel to $150/barrel in 8 years (2001-2009), and then again rose from $30+ to $120+ in 3 years (2009 -2012). Housing prices jumped 150%-500% in 3 years, after averaging an appreciation of 2.5% per year over a century. House prices are inflated again. Health care costs explode year after year, averaging 9.5% growth, year-over-year for the last decade. The cost of college tuition has gone up by almost 1000% in thirty years. And you have courage to tell me and other forum members here that there is no destruction of US dollar by the FED.
When I was a child in 1966, my father bought me a new pair of Chuck Taylor Converse All-Star sports shoes each year so I could play basketball. These athletic shoes were the best that money could buy at the time; I think these shoes cost about $3.50 a pair. If we compare a current cost of Nike Air Jordan shoes today ($250) with my old Chuck Taylor Converse All-Stars - the best sports shoes on the market in their day - we see that prices have inflated some 7000%. Average salary back then wasn't more than $15,000 in 1966 (and that may be high). The inflation rate implied in this example suggests that average American worker would need to be making $1,056,428.57 today, against $15,000 in 1966.
Ok, I admit that this example is somewhat self-serving. You can obviously argue that quality of product is much higher today, that raw costs have gone up. Labor costs, in this example, have not gone up however. I will give other example.
In 1970, a new Volkswagon bug cost $1700. Today, a new bug costs $20,000. This is an increase of 1100%. A person making $20,000 in 1970 would need to be making more than $215,000 dollars today to keep up with that inflation rate and destruction of US Dollar purchasing power.
In 1950, the year I was born, average house prices were $14,500. Average income was $3,216. Last month average existing house prices in the U.S. were $234,200. This is a gain of 1500% and suggests that average income in 2016 should be around $300,000 per year, using 1950 as a benchmark of normality.
The global economy has been in a condition of ‘massive, unsustainable animal heat’ with our FED leading the charge, cheering on the dogs: "Get your dreams now" Take on more debt. Being deeply in debt is a great thing for yourself, for your family, and for your country – even for the health and well-being of the Earth.
Debt is good. Debt is sustainable. But are high levels of debt really sustainable?
Health-care costs, energy costs, the cost of food have all spiraled upward…has the cost of anything gone down in the last thirty years, except for some electronic equipment?
Salaries have moved sideways. Salaries have definitely gone down for a man or woman who once worked in heavy manufacturing and is now selling coffee at Starbucks after his or her job was exported to China.
One of the reasons salaries are stuck is because of the collusion that has driven health-care costs through the roof. Doctors, medical providers, pharmaceutical companies, and insurance companies all have been having the times of their lives in America. Everybody has been getting rich, at the expense of the American worker and at the expense of sick and dying Americans.
The health-care bubble needs to be popped to make medical care affordable for all Americans. How do you pop health-care bubble, you raise interest rates, you allow strong dollar to pop all bubbles created by the FED!!!!!
FYI: a dollar bill is not a dollar.
Pursuant to American law, a dollar is a coin. (see Coinage Act of 1792)
A dollar bill is a note (debt) aka federal reserve note, denominated in dollars.
Before 1933, it was redeemable in real money (coin).
After 1933, it no longer was redeemable, thus the notes have no par value (legalese for worthless).
They are legal tender on the obligated parties on the notes (IOUs).
12 USC Sec. 411 states that the USGOV is an obligated party and must accept their own notes in lieu of lawful money (coin).
Can you guess how 324 million Americans became obligated parties on Congress' bad checks?
Hint: it involves volunteering to be a "contributor" and getting a number.
If you woke up one morning and an announcement was made that the US dollar was devalued by 10%, what would the practical application of this be to the average citizen?
Suppose someone had $10,000 in the bank. I understand they would still have $10,000 in the bank, and that this money would be worth 10% less (i.e. it takes more dollars to buy the same thing). But what would the average citizen be looking at for cost increases ? Will products made in the US not be affected as much as those imported? or visa-versa? What items are likely to be more sensitive to a devaluation than others?
The real impact is virtually nothing for the USA because our currency is used to price commodities and other goods and services traded internationally. Thus, we are virtually immune to currency based inflation.
You would see no change for the average citizen in the short term and likely little change even long term.
The impact on corporate profits would be a net positive for exporters. They collect money in foreign dollars and as the US dollar devalues the value of the other currencies they would get for goods and services would rise.
The Impact on importers would be negative as the costs for goods would rise assuming the other currencies we purchased finished goods remained the same. This however is not always the case as many major trading partners would look to match the dollars fall if it was prolonged. This is beneficial and countries like CHina would be looking for any excuse to devalue their currency. It helps them stay competitive in the third world industries and offset some rising costs they are dealing with compared to other crap holes we can exploit.
Oil prices rose from $20/barrel to $150/barrel in 8 years (2001-2009), and then again rose from $30+ to $120+ in 3 years (2009 -2012). Housing prices jumped 150%-500% in 3 years, after averaging an appreciation of 2.5% per year over a century. House prices are inflated again. Health care costs explode year after year, averaging 9.5% growth, year-over-year for the last decade. The cost of college tuition has gone up by almost 1000% in thirty years. And you have courage to tell me and other forum members here that there is no destruction of US dollar by the FED.
When I was a child in 1966, my father bought me a new pair of Chuck Taylor Converse All-Star sports shoes each year so I could play basketball. These athletic shoes were the best that money could buy at the time; I think these shoes cost about $3.50 a pair. If we compare a current cost of Nike Air Jordan shoes today ($250) with my old Chuck Taylor Converse All-Stars - the best sports shoes on the market in their day - we see that prices have inflated some 7000%. Average salary back then wasn't more than $15,000 in 1966 (and that may be high). The inflation rate implied in this example suggests that average American worker would need to be making $1,056,428.57 today, against $15,000 in 1966.
Ok, I admit that this example is somewhat self-serving. You can obviously argue that quality of product is much higher today, that raw costs have gone up. Labor costs, in this example, have not gone up however. I will give other example.
In 1970, a new Volkswagon bug cost $1700. Today, a new bug costs $20,000. This is an increase of 1100%. A person making $20,000 in 1970 would need to be making more than $215,000 dollars today to keep up with that inflation rate and destruction of US Dollar purchasing power.
In 1950, the year I was born, average house prices were $14,500. Average income was $3,216. Last month average existing house prices in the U.S. were $234,200. This is a gain of 1500% and suggests that average income in 2016 should be around $300,000 per year, using 1950 as a benchmark of normality.
The global economy has been in a condition of ‘massive, unsustainable animal heat’ with our FED leading the charge, cheering on the dogs: "Get your dreams now" Take on more debt. Being deeply in debt is a great thing for yourself, for your family, and for your country – even for the health and well-being of the Earth.
Debt is good. Debt is sustainable. But are high levels of debt really sustainable?
Health-care costs, energy costs, the cost of food have all spiraled upward…has the cost of anything gone down in the last thirty years, except for some electronic equipment?
Salaries have moved sideways. Salaries have definitely gone down for a man or woman who once worked in heavy manufacturing and is now selling coffee at Starbucks after his or her job was exported to China.
One of the reasons salaries are stuck is because of the collusion that has driven health-care costs through the roof. Doctors, medical providers, pharmaceutical companies, and insurance companies all have been having the times of their lives in America. Everybody has been getting rich, at the expense of the American worker and at the expense of sick and dying Americans.
The health-care bubble needs to be popped to make medical care affordable for all Americans. How do you pop health-care bubble, you raise interest rates, you allow strong dollar to pop all bubbles created by the FED!!!!!
This is riddled with falsehoods which by the way do zero to prove your point. To prove your point the cost of these goods would have had to stay the same or fallen across the world while the cost in the US skyrocketed. Just because you type a novel and make false claims doesn't prove your point
Why don't we have a world conference and have all the major currencies move their decimal point to the left?
Then $10 will be $1 again.
That would be a fantastic idea. Maybe make it two decimal places. Back in the good old days grandpappy could count the dollar value of his paycheck using only his fingers and toes. The inability to do this anymore is clearly causing certain members of this forum fits.
The last big devaluation of the dollar happened when Nixon took us off the gold standard. The result was hyperinflation and the Arab oil embargo. The price of everything doubled and then doubled again. Our current dollar is worth about 10% of what it was worth at the beginning of Nixon's first term in 1967.
None of those alleged results actually happened, and Nixon's first term began in 1969.
At that time by the way, $1 bought items that were priced at $1. Today those same items are priced at about $6.58 which is today's equivalent of $1 in 1969. People who are earning incomes in 1969-dollars while trying to pay 2016-prices are going to be in some trouble.
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