4 ms·
Dollar surge leaves trail of destruction
- givemeethekeys 5y agoIf everyone prints money then everyone devalues their currency together and the dollar stays put in relative value, no?
- DiabloD3 5y agoInflation is theft, however. Nobody should be engaging in this.
- tinus_hn 5y agoAlternatively it’s a comprehensive tax.
- 7speter 5y agoMy understanding from my undergrad Money and Banking course (someone else may learn the same topic from a differing vantage point) is that even if all countries are printing money at the same time different countries print differing amounts of money because they either have some comparative advantage in some good or service they can produce or none at all.
- dataangel 5y agoSeparate from value to other currencies it still effectively shrinks debts, and prices in different areas/sectors take different amounts of time to adjust. So still lots of effects.
- galaxyLogic 5y agoI find currency charts confusing. For instance see https://finance.yahoo.com/quote/EURUSD=X/ https://finance.yahoo.com/quote/EURUSD=X/ What does it mean that EUR/USD (EURUSD=X) 1.0523 Does it mean that if I exchange one Euro to dollars I get 1.0523 Dollars? OR does it mean if I exchange one Dollar to Euros I get 1.0523 Euros? How would I know which one it is? Is there some official convention for this? Does EUR/USD mean something like "Euro divided by Dollar" ? And what does "EURUSD=X" mean?
- ryanr1230 5y agoYes there is an official convention [1]. EUR/USD = X means you pay X USD (the quote currency, listed second) for one unit of EUR (the base currency, listed first). These are usually always the same way for the same pair of currencies (EURUSD is almost always USD as the quote currency, USDCHF is almost always Swiss franc as the quote currency) [1] https://www.cmegroup.com/education/courses/introduction-to-fx/understanding-fx-quote-conventions.html https://www.cmegroup.com/education/courses/introduction-to-f...
- galaxyLogic 5y agoThanks for the explanation and link.
- twoxproblematic 5y ago
- naveen99 5y agoIt’ll be funny if banks just end up using the fed repo facility to buy up higher interest treasuries. Fed balance sheet just switches from bonds to repo loans…
- manofmanysmiles 5y agoI find it funny that people think printing money is a good idea.
- djohnston 5y agoPeople and industries who take on massive debt point to two moments in history to suggest that hyperinflation is still preferable to deflation for economic health. Its pretty flimsy argument IMO.