DislikedHi Stan,
the Fed / Central Banks' actions FAR OUTWEIGH anything else that anyone says is affecting the dollar. (eg housing starts, NFPs etc).
The Fed / Central Banks are all trying to reduce the indebtedness of the US. Until that happens the USD will continue to fall over the medium / long term. (Remember, the US is one Trillion in debt and it is STILL increasing...) In other words, even with the current decrease in the value of the USD, the monthly indebtedness STILL keeps increasing.
Until the USD gets into some form of "balance" with other countries, the currency will continue to decline. And one Trillion dollars is a lot of dollars !!!
.Ignored
________________________________________
(I long for those good old days of just 1 Trillion)
And Growing More Every Day
Borrowed by the General Fund– $ 8,878,302,431,229* Income: Income taxes. Outgo: Defense 30%, Interest 19%, ..
Saved by the Social Security Trust+ $ 2,122,973,988,379 Income: FICA Payroll taxes. Outgo: Benefits and disability
Saved by other Gov. Trust Funds+ $ 3,569,591,716,104</B> Income: FICA & gas taxes. Outgo: Medicare, highways, etc.
Debt Held by the Public (net debt)– $ 5,308,710,715,125†
The debt game
When politicians (of both parties) talk about the debt, they don't like talking about $9 trillion, so they add up all the funds, as shown above, and talk about the "debt held by the public." They call this the "national debt," and they call its yearly increase the "deficit."
But this way of talking makes it sound like the money put into Social Security and into government and military pensions funds, all of which is borrowed by the General Fund, is not owed to the public. But it is. That money came from everyone's paychecks (FICA) and is owed to them in retirement. Every president has promised to keep that money safe. So, really, the whole $9 trillion is owed to the public.
In fact, over $2 trillion of what they call "held by the public" is actually held by foreign interests, while 100% of what is owed by Social Security is owed to Americans.
How did the General Fund end up $9 trillion in the hole? Tax cuts and spending increases--largely military spending increases, and deficit spending (funds borrowed via Treasury notes/bonds).
**---How this will wash regardiing the USD???
only can note: it's not pretty
currency overshoots only add to the possible $ devaluation still in process.
GL--WS