Article

2010-11-02 Economy

QE2 risks currency wars and the end of dollar hegemony

Archived material is restricted to Rantburg regulars and members. If you need access email fred.pruitt=at=gmail.com with your nick to be added to the members list. There is no charge to join Rantburg as a member.

Posted by tipper 2010-11-02 07:40|| || Front Page|| [1 views ] Top

#1 Immediate devaluing of the dollar means an immediate jump in the cost of imported energy resources with ramifications throughout the economy. Welcome to the double digit inflation 70s kiddies. The 'best and brightest' aren't.

Posted by Procopius2k 2010-11-02 09:09|| 2010-11-02 09:09|| Front Page Top

#2 It's a feature, not a bug.

Posted by Nimble Spemble 2010-11-02 09:25|| 2010-11-02 09:25|| Front Page Top

#3 my guess is they will surprise to the lowball estimate

the dollar will then rise in the short term and stocks will go down.

look out below ... the Dow will fall

It is actually good for the US to drive its dollar down to improve markets for its exports and to eat away its international debt

china can go whistle in the wind, they've been stealing jobs through the pegging of the yuan, it's high time they unpegged

Posted by anon1 2010-11-02 09:27|| 2010-11-02 09:27|| Front Page Top

#4 The negative is that Congress, the courts, and the media have obstructed 'drill, baby, drill' and 'build, baby, build [nukes]' since the 70s. Had we shifted a far greater part of our energy requirements to domestic sources, the overall impact upon the country would have made this a viable act. In absence of that preparation, it's going to compound with the taxes and government regulation to strangle the economy further. How does a businessman plan ahead when the rate of inflation is increasing and indeterminable in its end. Throw in the 'automatic' cost of living increases for social security et al and there is no budget, just printing more and more money.

Posted by Procopius2k 2010-11-02 09:52|| 2010-11-02 09:52|| Front Page Top

#5 QE2 has been laid up in Dubai ever since her retirement from the seas in 2008.

Don't you love namespace pollution?

Posted by gromky 2010-11-02 10:10|| 2010-11-02 10:10|| Front Page Top

#6 Yet again anon1 you manage to advocate doing EXACTLY the wrong thing economically.

When the currency falls you are giving workers an effective pay cut.

Posted by Bright Pebbles 2010-11-02 10:40|| 2010-11-02 10:40|| Front Page Top

#7 Inflation is NOT the answer. "Quantitative Easing" just another doublespeak term for a tax-hike without voting for a tax-hike. Manufactured inflation will really hurt the poor and move some "Middle-Class" into the poor house. Fuel and energy price jump, sustenance price jump, and more slowing of the economy.

Posted by newc 2010-11-02 10:49|| 2010-11-02 10:49|| Front Page Top

#8 Zimbabwe economics.

Posted by Ebbang Uluque6305 2010-11-02 12:07|| 2010-11-02 12:07|| Front Page Top

#9 Fuel and energy prices have been increasing, as have food prices. House prices have fallen again, though, so that's ok.

/sarcasm

Posted by trailing wife 2010-11-02 13:47|| 2010-11-02 13:47|| Front Page Top

#10 Falling House prices = More affordable housing = Less debt = Lower cost of living.

It's the market recovering, not a bad thing.

Posted by Bright Pebbles 2010-11-02 14:57|| 2010-11-02 14:57|| Front Page Top

#11 It is actually good for the US to drive its dollar down to improve markets for its exports and to eat away its international debt

Except that manufacturing in the U.S. has declined over the years and we have fewer and fewer goods to export.

Posted by JohnQC 2010-11-02 17:09|| 2010-11-02 17:09|| Front Page Top

#12 ..and watch 'trade barriers' of various forms and definitions arise against those American exports. See where all that concern in the Beltway for everyone but America's economy gets you now that you've started to play the game they've played for so long.

Posted by Procopius2k 2010-11-02 17:18|| 2010-11-02 17:18|| Front Page Top

#13 Look America's a BIG country.

Exports and Imports are tiny compared to internal trade.

CUT taxes on trade and have a strong currency.

Posted by Bright Pebbles 2010-11-02 19:50|| 2010-11-02 19:50|| Front Page Top

23:58 JosephMendiola
23:49 JosephMendiola
23:42 GolfBravoUSMC
23:42 GolfBravoUSMC
23:22 Barbara Skolaut
23:18 Barbara Skolaut
23:16 Pappy
23:05 Pappy
22:58 Pappy
22:53 trailing wife
22:52 Pappy
22:48 trailing wife
22:43 lotp
22:40 Barbara Skolaut
22:37 Barbara Skolaut
22:33 DarthVader
22:20 OldSpook
22:19 JosephMendiola
21:48 Frank G
21:48 JosephMendiola
21:42 tu3031
21:37 GolfBravoUSMC
21:24 badanov
21:23 Frank G