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  • What does Biden’s stimulus plan mean for the US Dollar?

    From forex.com

    On Thursday evening, President-elect Joe Biden unveiled a $1.9 trillion stimulus package to help Americans due to the economic impact of the coronavirus. The package includes an additional $1400 in direct payment per person, which would result in the $2,000 amount President Trump was asking. Biden will have an easier path to pass his stimulus bill than President Trump, as Democrats will control both the House and the Senate come January 20th. In addition, according to the New York Times, Biden’s stimulus plan will also include: $440 billion to help local officials fight the virus $160 billion in a national vaccine ... (full story)

Today the USD showed some signs of strength
And it will keep showing it. For sure.
Keep in mind what everyone witnessed last evening took the Biden's "A" team to assemble since end of first week in November.
Meaningful perspective when figuring out what the Future holds in store.

Oh yeh I forgot to add, he says they are moving fast.
There is the plan, and there is what gets passed. In this sense, it does not matter who is in the executive. The legislature is non-functional.
Man they sure do be running those money printers on overtime
Stimulus only part of what is coming. People fail to understand how low energy prices under Trump contained cost increases in basic elements of Life. Food, Shelter, Transportation.

Pushing thru new green deal and all of its' accompanying baggage that goes along with it, is going to introduce serious cost push inflation.
Cities are most vulnerable and just wait for howls of protest when things such as fresh fruits and vegetables double in price over next 2-3 years.

Stimulus is in Big picture quite meaningless and easily wiped out by the coming loss of purchasing power.
Food and basic sustenance of Life can not be printed. Monetary policy is for headlines and financial markets. It has little to do with where people live.
Simple! Sell USD
Quoting foto
Stimulus only part of what is coming. People fail to understand how low energy prices under Trump contained cost increases in basic elements of Life. Food, Shelter, Transportation. Pushing thru new green deal and all of its' accompanying baggage that goes along with it, is going to introduce serious cost push inflation. Cities are most vulnerable and just wait for howls of protest when things such as fresh fruits and vegetables double in price over next 2-3 years. Stimulus is in Big picture quite meaningless and easily wiped out by the coming loss...
What low energy prices under trump? Are you talking about the Russia/Saudi price was that had nothing to do with him? Inflation is coming because of all the stimulus money printed one way or another no matter who was in charge. This is again just like when Obama took over in 08 and was blamed for the mess that Bush made. FYI Green energy is the future and it is cheaper and has less baggage than oil and gas. Right now the US fossil fuel industry is subsidized to the tune of over $20 billion per year...that's baggage and then some. That is stupid when you consider that wind and solar farms are much cheaper to build and maintain.
Quoting harcos
{quote} What low energy prices under trump? Are you talking about the Russia/Saudi price was that had nothing to do with him? Inflation is coming because of all the stimulus money printed one way or another no matter who was in charge. This is again just like when Obama took over in 08 and was blamed for the mess that Bush made. FYI Green energy is the future and it is cheaper and has less baggage than oil and gas. Right now the US fossil fuel industry is subsidized to the tune of over $20 billion per year...that's baggage and then some. That is...
I guess you weren't a Trader yet when Oil prices went negative.
California went green and then had to buy electric from out of state as supply produced within the state could not keep up with demand.
Food production which requires fuel for equipment and fertilizer is not going to run on batteries.

It is going to take much more then rhetoric to replace fossil fuels including coal.
China is undergoing electric energy shortfalls and recommissioned coal plants which had been idled and now rediscovered it needs Australian coal.
USD will continue in downward path after Inauguration and USD IRD
Quoting foto
{quote} I guess you weren't a Trader yet when Oil prices went negative. California went green and then had to buy electric from out of state as supply produced within the state could not keep up with demand. Food production which requires fuel for equipment and fertilizer is not going to run on batteries. It is going to take much more then rhetoric to replace fossil fuels including coal. China is undergoing electric energy shortfalls and recommissioned coal plants which had been idled and now rediscovered it needs Australian coal.
Oil prices were never negative, oil futures were. That was an anomaly caused by traders who could not take delivery of oil because....wait for it, they were traders. Ergo they had to sell their futures at a loss. Also farm equipment can easily be electric and run off clean fuel. Of course there will be shortages during the transition but like any other challenge they can be overcome. If you don't believe me look at the trends, every year since the turn of the century the planet is using more and more renewables. https://www.statista.com/statistics/...gy-since-2005/
It's coming whether you like it or not.
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