Posted on 02/05/2016 6:06:31 PM PST by Lorianne
The US dollar has suffered one of the sharpest drops in 20 years as the Federal Reserve signals a retreat from monetary tightening, igniting a powerful rally for commodities and easing a ferocious squeeze on dollar debtors in China and emerging markets.
The closely-watched dollar index (DXY) has fallen 3pc this week to 96.44 and given up all its gains since late October. This has instant effects on the world’s inter-connected financial system, today more geared to the US exchange rate and Fed policy than at any time in modern history.
David Bloom, from HSBC, said the blistering dollar rally of the past three years is largely over and may go into reverse as weak economic figures in the US force the Fed to pare back four rate rises loosely planned for this year.
A more dovish Fed and a weaker dollar is a bitter-sweet turn for the Bank of Japan and the European Central Bank as they try to push down their currencies to stave off deflation. Their task has become even harder.
(Excerpt) Read more at telegraph.co.uk ...
If you have time.... what does this mean?
Ambrose is the chicken-little of financial reporting.
Behind every silver lining, there’s always a big black cloud.
I’d look for second opinions...
Are You Prepared? The Fed Blinks!
https://www.youtube.com/watch?v=udhI0Lk9zDQ
Our U.S. national debt is headed toward $19 trillion dollars, while China has extra money instead. We need to be allowed to produce and export instead of propping our dollar unnaturally high. Otherwise, there will be no revenues at all.
Why should US fiscal policy be aimed at helping the zipper heads?
The Globalist are doing all they can to prevent the economy tanking on Obama’s watch.
The next President will have a lot on their hands to deal with.
Our federal government, and by extension the FED, consider themselves too worldly and sophisticated to pursue gauche parochial nationalistic policies and represent the interests of America and Americans.
They see see their primary role as leading members of the world community and view it as their mission to use America’s power, wealth and force to further the interests of their world partners.
The are not concerned that it is done at the expense of, and on the backs of, American taxpayers.
Bump!
If we lower the dollar we’ll have to pay more interest on the loans to finance that debt. Which would require higher taxes which would make our products uncompetitive.
The only way to support our huge welfare state now would be to use our military before it evaporates to enslave England or Brazil, or both.
What does what mean?
Yes, and we are running full throttle to the New World Order, which will be led by the Antichrist.
This story? True or not?
Why would they give a damn who is at the helm?
So Obama can’t get blamed for it.
Raising the federal funds rate would cause viral interest rate increases throughout the economy. It would be interesting to see government forcibly shrunk to a more appropriate size, not to mention bond collapse, default, repudiation and office closings.
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