DislikedThat might be good if US export is more than import. Weak dollar is good for import as paying less.Ignored
- #59,422
- Oct 30, 2012 5:38am Oct 30, 2012 5:38am
- Joined Jun 2012 | Status: ケンジ | 21,416 Posts
Yeah.
First off, the QE5 was meant as kind of a joke
As for QE4, i don't think it's out of the question. As i've said before, it all comes down to econ numbers. Numbers good to great - no added treasury purchases, numbers mixed to bad - QE4.
I think the markets could grind higher till elections, then, if Romney wins, equities will take a beating and Benny boy could add a 20bln extra to treasury purchases when OT ends. If Obama wins then the mindset will remain dovish with the markets being mixed with the anticipation of the FOMC...
- #59,424
- Oct 30, 2012 5:44am Oct 30, 2012 5:44am
- Joined Apr 2007 | Status: Trader | 1,522 Posts
"He who controls the Spice, controls the universe!"
"The spice must flow."
As in the Spice girls ?
Dude, that is soooo yesterday !
- #59,425
- Oct 30, 2012 5:44am Oct 30, 2012 5:44am
You can find it here and search for US Trade Balance http://www.forexfactory.com/search.php?searchid=3900530
THANK YOU VERY MUCH
- #59,426
- Edited 6:08am Oct 30, 2012 5:56am | Edited 6:08am
- Joined Jun 2012 | Status: ケンジ | 21,416 Posts
Really thank you. I did not know that it was trade balance to look into.
THANK YOU VERY MUCH
http://www.forexfactory.com/calendar.php#detail=40888
Edit: I got mixed up with weaker dollar is good for import but on the contrary hence why imported goods are bad for consumer such as fuel. My bad.
- #59,428
- Oct 30, 2012 6:04am Oct 30, 2012 6:04am
- Joined Jul 2008 | Status: "Not all information is beneficial. | 1,724 Posts
- #59,431
- Oct 30, 2012 6:17am Oct 30, 2012 6:17am
- Joined Jul 2008 | Status: "Not all information is beneficial. | 1,724 Posts
If Romney gets elected, and if, we get a fed chairman that is much more hawkish than what we have at present, and if the economy is not growing GDP close to 4%, then we truly will experience a US depression and global depression based on tightened monetary policy in a low growth period in the economy.
*See monetary policy during administration of US president Herbert Hoover
Raising interest rates in the guise of strengthening a currency will actually have the contrary effect of squelching any growth by making credit unaffordable for businesses wanting to expand or modernize their plant or processes, if GDP growth rates remain as lethargic as at present levels.
The only people/businesses who would profit in this scenario would be:
Businesses who have enough capital to function without dependency on the decisions of the fed
Individuals with enough wealth that monetary policy has no effect on them but to increase their wealth with the least amount of capital utilization.
Just my opinion......based on fact and history.
*See monetary policy during administration of US president Herbert Hoover
Raising interest rates in the guise of strengthening a currency will actually have the contrary effect of squelching any growth by making credit unaffordable for businesses wanting to expand or modernize their plant or processes, if GDP growth rates remain as lethargic as at present levels.
The only people/businesses who would profit in this scenario would be:
Businesses who have enough capital to function without dependency on the decisions of the fed
Individuals with enough wealth that monetary policy has no effect on them but to increase their wealth with the least amount of capital utilization.
Just my opinion......based on fact and history.
- #59,433
- Oct 30, 2012 6:26am Oct 30, 2012 6:26am
- Joined Jul 2008 | Status: "Not all information is beneficial. | 1,724 Posts
Can you explain more about devaluing the dollar means cheapening the cost of foreign debt. Because it seems that most of US debts are in the hands of Asia ( China and Japan).
You are Asia, I will be US.
I borrow $100 from you and the value of my dollar is equal to 100 of your currency so we are at parity.
I then increase the amount of my dollars in circulation by 100% thereby doubling the amount of dollars in circulation.
If your currency remains the same, I have now decreased value of what I owe you by 50% by now making $200 of my currency being equal to 100 of yours.
This is what is meant when you hear the talking heads speak of a race to the bottom in currency devaluation. You can end up with hyperinflation and collapse of monetary system.
* see Weimar Republic
Although printing of currency may aid in times of slow growth or in recessionary times........too much of a good thing can end up killing the patient.
This is a very simplified explanation, and there are many aspects too numerous to discuss in a thread reply
edit in bold
- #59,435
- Oct 30, 2012 6:31am Oct 30, 2012 6:31am
- Joined Jun 2012 | Status: ケンジ | 21,416 Posts
Now you all will agreeeee with me why I say Gofer for president - he understands economy better than Romney and Obama combined.
- #59,436
- Oct 30, 2012 6:35am Oct 30, 2012 6:35am
- Joined Jul 2008 | Status: "Not all information is beneficial. | 1,724 Posts
I wouldn't touch that job with a ten foot pole!
But ask yourself......say " SELF, why would anyone spend one billion+ dollars to get a job that pays $400,000/year?"
These hacks that run for the office are about control.....period. They want to control the wealth and resources of a country for their own twisted viewpoints of how the world should be.
I hope I don't sound too cynical!
But I would want to be president of the beer tap.........NOW that is control! LMFAO
- #59,439
- Oct 30, 2012 6:52am Oct 30, 2012 6:52am
- Joined Jul 2008 | Status: "Not all information is beneficial. | 1,724 Posts
Very clear explanation.
So basically BECAUSE the loan was in US$, devaluing the dollar helps the trillion of debts the US has with Asian countries.
I guess, then Asian countries have no choice.
Now were all US foreign debt in US $ then...
My grandfather always said that the US could borrow as much money as they could from everyone in the world to build our infrastructure, manufacturing, military, and if debt ever gets out of control, then who cares because you have upper hand CONTROL at that point and creditors would not be able to collect on debts. Remember US would then have best military, and are geographically isolated from major creditors.
The OOPS part of that thinking is nuclear and biological weapons and their mode of delivery has vastly improved and been vastly distributed to many different countries now.
It is an antiquated caveman mentality that would prescribe to this thought paradigm, and there are many neo-conservatives in the US that actually think this way, and don't understand that US is but a citizen in the world and has to learn to get along with other cultures and ideals with mutual respect as that is what is expected of other citizen countries of the world.
There is no room in the conversation for Islamic, Christian, or Judaic fundamental extremism if we want to all get along in the world.
Mutual respect and humility of all peoples is the only path forward for peace and prosperity for ALL in the world!
I'm done with that!
- #59,440
- Oct 30, 2012 7:06am Oct 30, 2012 7:06am
In simple terms....yes.
My grandfather always said that the US could borrow as much money as they could from everyone in the world to build our infrastructure, manufacturing, military, and if debt ever gets out of control, then who cares because you have upper hand CONTROL at that point and creditors would not be able to collect on debts. Remember US would then have best military, and are geographically isolated from major creditors.
The OOPS part of that thinking is nuclear and biological weapons and their mode of delivery has vastly improved...
In practice if you want peace, prepare for the war.
I guess the importance of the US military is now obvious : to ensure economic hegemony.
I am actually just checking the US bases overseas, and , looks like nearly all bases are covered
