1. Welcome to Baptist Board, a friendly forum to discuss the Baptist Faith in a friendly surrounding.

    Your voice is missing! You will need to register to get access to all the features that our community has to offer.

    We hope to see you as a part of our community soon and God Bless!

Bernanke: Fed could act if economy weakens

Discussion in 'Political Debate & Discussion' started by freeatlast, Jun 7, 2012.

  1. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
  2. InTheLight

    InTheLight Well-Known Member
    Site Supporter

    Joined:
    Dec 17, 2010
    Messages:
    24,988
    Likes Received:
    2,268
    Faith:
    Baptist
    What is the dollar going to be devalued against? The Euro? The Yen? What currency did you have in mind?
     
  3. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    If it happens, Against itself.
     
  4. InTheLight

    InTheLight Well-Known Member
    Site Supporter

    Joined:
    Dec 17, 2010
    Messages:
    24,988
    Likes Received:
    2,268
    Faith:
    Baptist
    So the dollar would be devalued against itself. And how would anyone know this was happening?
     
  5. targus

    targus New Member

    Joined:
    Feb 10, 2008
    Messages:
    8,459
    Likes Received:
    0
    This should be an interesting discussion.:laugh:
     
  6. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    If it does happen, The news or if you do not watch the news then my guess is that the next time you got a pay check or saw your bank balance you would know something was up.
     
  7. mandym

    mandym New Member

    Joined:
    Feb 3, 2011
    Messages:
    4,991
    Likes Received:
    0
  8. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
  9. InTheLight

    InTheLight Well-Known Member
    Site Supporter

    Joined:
    Dec 17, 2010
    Messages:
    24,988
    Likes Received:
    2,268
    Faith:
    Baptist
    Do you know what you are talking about? Help me understand how if the U.S. devalues the dollar then my paycheck and bank balance would be reduced the next time I looked at it. I think you are confusing devaluation of the dollar with inflation.
     
    #9 InTheLight, Jun 7, 2012
    Last edited by a moderator: Jun 7, 2012
  10. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    I never said that. Read post #6
     
  11. InTheLight

    InTheLight Well-Known Member
    Site Supporter

    Joined:
    Dec 17, 2010
    Messages:
    24,988
    Likes Received:
    2,268
    Faith:
    Baptist
    All right, what would I see in my paycheck and bank balance if the Fed devalues the dollar?
     
  12. AresMan

    AresMan Active Member
    Site Supporter

    Joined:
    Aug 12, 2005
    Messages:
    1,717
    Likes Received:
    11
    Faith:
    Baptist
    The unasked question is: Are the actions of the Fed itself responsible (at least in part) for the weakening of the economy?
     
  13. AresMan

    AresMan Active Member
    Site Supporter

    Joined:
    Aug 12, 2005
    Messages:
    1,717
    Likes Received:
    11
    Faith:
    Baptist
    The nominal indicators of your paycheck and bank balance would look the same, but you would probably notice lesser purchasing power with the same balance, because prices would increase at the grocery store, at the gas pump, and elsewhere.

    What is the difference?
    Devaluation happens when more monetary units are introduced, thus diminishing the value of each unit to the whole.
    Inflation is an increase in the supply of money.

    Inflation is the cause and devaluation is the direct effect.
     
  14. InTheLight

    InTheLight Well-Known Member
    Site Supporter

    Joined:
    Dec 17, 2010
    Messages:
    24,988
    Likes Received:
    2,268
    Faith:
    Baptist
    Yes, that is called inflation.

    Devaluation is when the currency exchange rate vs. another currency is lowered.

    No, inflation is when the money supply exceeds the amount of goods to be purchased in the system. Inflation in not merely an increase in the money supply (though it can be, sometimes).
     
  15. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    One thing could be New money.
     
    #15 freeatlast, Jun 7, 2012
    Last edited by a moderator: Jun 7, 2012
  16. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    While the fed holds a great deal of responsibility becauase of the inflation that that they cause, the over spending by the governemt causes the fed to do what they do so it is a loop.
     
  17. InTheLight

    InTheLight Well-Known Member
    Site Supporter

    Joined:
    Dec 17, 2010
    Messages:
    24,988
    Likes Received:
    2,268
    Faith:
    Baptist
    Please elaborate. New money? What, different currency? Or what?

    You realize that having a conversation with you is like rolling a boulder uphill during a mudslide...
     
  18. Borneol

    Borneol New Member

    Joined:
    Dec 24, 2010
    Messages:
    127
    Likes Received:
    0
    Hopfully the Fed will not be looking at QE3. The first two rounds of quantitative easing didn't work to stimulate the economy much. It is hard to imagine that a third try to stimulate this way will do a tremendous amount of good.

    Like Dr Weiss's article on this recently.

    "The Deadliest Vicious Cycle We’ve Ever Seen"

    http://www.moneyandmarkets.com/the-deadliest-vicious-cycle-weve-ever-seen-49489
     
  19. freeatlast

    freeatlast New Member

    Joined:
    Mar 1, 2004
    Messages:
    10,295
    Likes Received:
    0
    Like many countries has done many times, new money replacing the old is one way.
     
  20. billwald

    billwald New Member

    Joined:
    Jun 28, 2000
    Messages:
    11,414
    Likes Received:
    2
    There must be another trillion ready to be transferred to Swiss numbered accounts.
     
Loading...