I've been watching the rumblings in the last bit, and the US nation is almost ... Stackers' Lounge forum
The US Fed and the Value of the US Dollar
I've been watching the rumblings in the last bit, and the US nation is almost tanking. But why does the value of the US dollar constantly rise?I thought that when the Fed printed more greenbacks, that would devalue the US dollar, causing it to tank.The only situation that I can think of of is that possibly other countries are devaluing their own currency so as not to kill their exports to the USA? (I got the idea listening to a national argument on Canadian tv)Any opinions?
Look at how the EU is handling the crisis. Not as a union but as individual countries prop their own banks up. The EU is on the verge of collapse and in turn taking the euro with it.
Even with all the financial hadships in america the stability of the govenrment and treasury makes it still the most stable in troubled times.
also let me add as more investors move from the stock market and put more money in secure government bonds that also increases the value of the almighty dollar.
Printing more money doesn't have an effect on our economy. Money supply comes from interest paid by people to banks, or large companies to banks, or financial institutions to other financial institutions. Sometimes the Gov steps in and adds money or takes it out of the system by buying or selling a special type of credit. Adding money encourages spending and helps the GDP/economy grow with a risk of inflation. Taking money out of the system controls inflation at the risk of slowing the economy.
Also, the US dollar used to have gold backing it, but now has nothing backing it other than the CONFIDENCE that it's a strong currency. When the dollar depreciates that means that compared to other countries the confidence in that currency has decreased. The point is that making physical representations of money has NOTHING to do with a countries money supply. That's simply a certificate that represents your liquid assets.
The truth is that the economy is much more complex than the average person understands, and it's best to not worry yourself about it. Take some classes to get a sense of how things are actually handled. It certainly stops you from worrying about the little things the media likes to scare people about.
I just know I am ready for things to get back to where they should be.
The Federal Reserve should be abolished in my opinion.
I always enjoy watching Ron Paul lay the smack down on Ben Bernanke on CSPAN.
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