Bernanke: Fed could act if economy weakens

Discussion in 'Politics' started by freeatlast, Jun 7, 2012.

  1. freeatlast

    freeatlast
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  2. InTheLight

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    What is the dollar going to be devalued against? The Euro? The Yen? What currency did you have in mind?
     
  3. freeatlast

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    If it happens, Against itself.
     
  4. InTheLight

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    So the dollar would be devalued against itself. And how would anyone know this was happening?
     
  5. targus

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    This should be an interesting discussion.:laugh:
     
  6. freeatlast

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    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

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  8. freeatlast

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  9. InTheLight

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    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

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    I never said that. Read post #6
     
  11. InTheLight

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    All right, what would I see in my paycheck and bank balance if the Fed devalues the dollar?
     
  12. AresMan

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    The unasked question is: Are the actions of the Fed itself responsible (at least in part) for the weakening of the economy?
     
  13. AresMan

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    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

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    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

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    One thing could be New money.
     
    #15 freeatlast, Jun 7, 2012
    Last edited by a moderator: Jun 7, 2012
  16. freeatlast

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    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

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    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

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    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

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    Like many countries has done many times, new money replacing the old is one way.
     
  20. billwald

    billwald
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    There must be another trillion ready to be transferred to Swiss numbered accounts.
     

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