NT how can US raise the value of the dollar?

bkzkurse

bkzkurse

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Jan 7, 2004
I keep reading about it everytime I look at cnn money.com / Times.

Is it even possible for government to stop the fall of the dollar?
 
^ your referring to inflation? I thought the falling dollar value would aid in dealing with inflation. ?
 
When the Fed lowers interest rates, they inject money supply into the economy (which in plain English means they print money)

Simple supply and demand: when the US prints more money, our money is worth less. Say the Fed injects 50 billion dollars into the economy. Now each dollar wehave is worth less than it was before.

I don't know if you've been following the market but the Fed cut rates a few months ago and Wall Street is anticipating another cut on Tuesday (thenext meeting)

They do this because they're worried the economy is weak and going into a recession (subprime and credit crunch issues...the financial sector just tookhuge losses the past year). So what they do is try to spur economic growth by lowering interest rates, making it easier for businesses to borrow and banks tolend. However the main worry about interest rate cuts is that it'll increase inflation. Thats the Fed's main job is to balance the interest rate sothat it keeps the economy growing steadily and at the same time maintaining inflation.
 
The dollar is only second to the euro. Which isn't too bad considering that the euro is used across almost an entire continent. But anyways the guy abovewas right with the whole slowing down inflation thing. I just had a class on this but I can't remember. Ill look at my notes when I get home.
 
^^ Dollar is behind euro and pound and about equal to the Canadian dollar
smh.gif


$1 = 0.68 Euros currently. In my derivative securities book written less than 2 years ago, the example listed $1 = 1.08 euros

so the dollar has fallen A LOT
 
Originally Posted by Fede DPT

Stop giving money to people who cant pay it back.
Click to expand...

This happen in Japan early last decade. That's exactly why they were thrusted into a large recession. I don't know where our economy is headed persay, but I do know that these banks need to be a lot more responsible with the credit debt towering.
 
it's basically what poeticjays said. the fed directly controls the short run interest rate, which in turn controls the money supply.

and the euro is NOT the key currency, the dollar still is. there has been controversy about giselle bundchen rumored to have asked to be paid in euros insteadof dollars, possibly hinting the euro might overtake the dollar. however, greenspan and bernanke have shared their views that this will not happen.

the dollar will be the most stable currency, when compared to the euro, for several major reasons.

Edit: there was also controversy over jay-z's "blue magic" video where you see him flaunt a wad euro's rather than dollars, again hinting atthe overtake of the dollar. however some have claimed he used the euro because it's a "well-known fact that drug dealers like to deal in high currencynotes, hence the U.S. stopped printing currency over $100 bill" I believe the euro's used in the video had a value of 5,000 for each note?
 
Make everything in cheaper so the dollar stretches farther. Or add .50 to the dollar so the its worth a $1.50.

tongue.gif
 
If this continues we will be the new China in several years. Our dollar will be so cheap that automotive companies will want to purchase things from us. As ofright now they are not making as much money as they used too because the dollar holds lesser value. It'll swing around again and we will thrive again.

I think I heard somewhere that we are investing money in Japan and China so that their dollar becomes more powerful than ours, so in return other countrieswill purchase from us more because things will be cheaper (less value of the dollar)

Correct me if I'm wrong


Also, went to Canada a couple weeks ago and won 100 at the casino, turned it into dollars and I got $97.
indifferent.gif
I remember I used to throw that funny money aroundlike it was nothing
 
very good discussion. the thing about the fed rate cut is, we get hit as well. or at least, people who save. ex: ing lowered their rates twice i believe, inless than 3 months for savings accounts
 
Who does the value of the dollar affect the average Joe like me when I want to buy a bottle of water or a pair shoes?
 
Originally Posted by minah86

it's basically what poeticjays said. the fed directly controls the short run interest rate, which in turn controls the money supply.

and the euro is NOT the key currency, the dollar still is. there has been controversy about giselle bundchen rumored to have asked to be paid in euros instead of dollars, possibly hinting the euro might overtake the dollar. however, greenspan and bernanke have shared their views that this will not happen.

the dollar will be the most stable currency, when compared to the euro, for several major reasons.

Edit: there was also controversy over jay-z's "blue magic" video where you see him flaunt a wad euro's rather than dollars, again hinting at the overtake of the dollar. however some have claimed he used the euro because it's a "well-known fact that drug dealers like to deal in high currency notes, hence the U.S. stopped printing currency over $100 bill" I believe the euro's used in the video had a value of 5,000 for each note?
Click to expand...

Most important being that the Euro is based off several economies rather than one, and you know how things go....action-reaction.
 
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