To: Strategy
Its very simple supply and demand. As you create more dollars people demand less of them. For every dollar the government borrows the Federal Reserve has to print a dollar to buy the bond. The supply of dollars is going through the roof, so the value of the dollar must fall.
4 posted on
03/06/2009 9:27:20 AM PST by
FightThePower!
(Fight the powers that be!)
To: FightThePower!
Before too long the only thing the dollar will be good for is toilet paper.
5 posted on
03/06/2009 9:45:28 AM PST by
Ev Reeman
To: FightThePower!
....so the value of the dollar must fallCompared to what? The fact is that the other currencies are in even worse shape, except perhaps the yuan. Compared to gold, it has already fallen quite a bit.
6 posted on
03/06/2009 10:36:44 AM PST by
expatpat
To: FightThePower!
For every dollar the government borrows the Federal Reserve has to print a dollar to buy the bond. The Fed buys every bond the Treasury issues? OMG! You're stupid!
9 posted on
03/13/2009 9:56:04 AM PDT by
Toddsterpatriot
(Havoc has been back since September. Or was it April?)
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