So a 30 day loan is going to cause inflation to jump to 10%?
The value of the dollar has dropped 30% in the past 4 years.
When the Euro was created in 1996, it was worth $1.20, now it's worth $1.35. Wow, we're doomed!
When the Euro was created in 1996, it was worth $1.20, now it’s worth $1.35. Wow, we’re doomed!
And what was the lowest value of the euro during that time? I think when you compare its’ lowest rate to the current rate you will see quite a big rise in its’ value and comparing it to the decline of the dollar, it is very telling. The value of your currency is determined by the world market, not by our Fed. The world is voting and you can see the results. There is a reason the dollar has declined so much over the last few years. People are seeing the real dynamics of our economy and they are hedging their bets.
It all comes down to the value of the dollar. Your currency value is an x-ray of your economy. If the results of that x-ray were good, the value of the dollar would be going up, but it is going down, and with reason.
Currencies go up when investors look at an economy and see a future that presents real growth without an undo concern for either inflation or recession. Wealth in the long term migrates to sustainablity and stability, and tries to avoid risk and uncertainty.