The Dollar; under assault from obama administration (March, versus, federal)

[sanrene]

Dollar Declines Most Since 1985 Plaza Accord on Fed Bond Buying

Every friggin time they tell us their plans, the impact/result is devastation.

Dollar Declines Most Since 1985 Plaza Accord on Fed Bond Buying - Bloomberg.com

March 21 (Bloomberg) -- The dollar dropped the most against the currencies of six major U.S. trading partners since the Plaza Accord almost a quarter-century ago as the Federal Reserve’s plan to purchase Treasuries spurred speculation that it’s debasing the greenback.

Fed’s Announcement

The U.S. currency tumbled 3.4 percent versus the euro on March 18, the biggest drop since the 16-nation currency’s 1999 debut, when the Fed unexpectedly announced at the end of its two-day policy meeting that it will buy up to $300 billion of Treasuries and increase its purchase of agency mortgage-backed securities, a policy known as quantitative easing.

Is there any doubt the obama administration is truly out to destroy the capitalist, free-market system of the US?

For only one reason - if the populace is scared and in a panic, the chances are good obama will be able to pass into law his socialism of the US.

[ViewFromThePeak]

Plus, changing the tax code to shine a laser beam on particular classes of taxpayers (90% on TARP bonuses) opens the door for populist backed exceptions down the road. For example, tax the heck out of gold speculators or anyone profiting from seeking safety in commodities during hyperinflation. Exchange controls, confiscation, capital gains tax increases, etc.

Fun times ahead.

[FinkieMcGee]

The alternative is the dollar gets jacked up because foreign investors flock to it because its currently the safest currency, then exports tank because American goods are too expensive and GDP drops as a result. If you're interested in keeping Americans employed right now you would want the American dollar to be competitive against other cheaper currencies. But that might make too much sense.