#4847
Post
by Seenenough » Fri Sep 30, 2022 1:30 pm
Here is part of a Bloomberg article which seems to support the fact that when America sneezes that the rest of the world will catch a cold.
It is even more worrying that the Dollar strengthens despite the Biden Admin giving money away everywhere.
Essentially the UK can do nothing about it as it is just along for the ride.
I'm beginning to wonder if this is not an intended US tactic to neutralize or mitigate China's world domination intentions.
Also our old democrat loving buddy George Soros?Looking more and more to me that he has shorted everyone ,with the help of Janet Yellen ,again the Dollar maybe.
Couple this with some unexplained Baltic mishaps and the mind races.
But what do I know as the Forums resident economist tells me that I am "innumerate"
It is a long article would suggest look it up and read it
BTW Biden cares jack for anyone else because he is totally focused, or should I say his handlers are ,to save their political butts and maintaining their grip.
The Unstoppable Dollar Is Wreaking Havoc Everywhere But America
The Federal Reserve’s focus on taming inflation is inflicting a world of pain on other economies.
The mighty dollar is steamrolling everything right now, causing issues for economies almost everywhere—except in the US. That means that, for now at least, it’s not America’s problem and the historic central-bank-fueled surge in the greenback is unlikely to abate anytime soon.
By some measures the US currency is already stronger than ever, eclipsing the highs of the Covid-19 pandemic from early 2020. The pain it’s inflicting has echoes of the mid-1980s, when foreign exchange chaos forced the world’s most important finance officials to join hands and impose a solution on markets. Right now, though, it’s every country for itself as the US administration pushes back on the idea of coordinated market action.
With the risk of economic damage spreading, officials from Tokyo to Santiago have been drawn into the fray to prop up their currencies with improvised solutions such as selling dollars directly into the market. But Federal Reserve chief Jerome Powell is squarely focused on fighting inflation at home, doubling down on rate-hiking plans that have supercharged the dollar. And US Treasury Secretary Janet Yellen has said she believes financial markets are working as they should.
.......
Currency Change from 12/31/21 to 9/27/22
British pound -20.7%
Japanese yen -20.5
South Korean won -16.4
Euro -15.6
Chilean peso -13.7
Australian dollar -11.4
Chinese yuan -11.3
Indian rupee -8.7
Swiss franc -8.0
Canadian dollar -7.9
Mexican peso 0.7
.....
A combination of alluring interest rates in the US and the comfort of feeling your money is safer in dollar-denominated assets is helping buoy the greenback. In more normal times, officials might welcome a weakening of their currencies, which tends to stimulate growth by making exports more competitive while encouraging consumers and businesses to buy local. But these aren’t normal times. Right now the problem bedeviling officials from Frankfurt to Seoul is high inflation—and weak currencies add fuel to that by increasing the cost of imported products and stimulating domestic growth. So some governments and central banks need to respond to the ongoing battering.
Britain’s pound is just the latest major currency in the spotlight after new government fiscal plans sparked a dramatic loss of confidence in sterling. But it was, like its peers, under tremendous pressure before that, trading near multidecade lows. Elsewhere, the yen has weakened so much that Japan’s government has stepped directly into markets on several occasions since Sept. 22; India, Chile, and others have also felt compelled to intervene. Europe’s common currency, meanwhile, has sunk below parity with the dollar under the weight of the region’s energy crisis, and China’s government has waged its own fight on behalf of the renminbi.
Source: Bloomberg