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Toto deVeer

Plan Of Qe Is To Strengthen The Dollar

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Interesting, and plausible...this is the same feedback loop that caused the last major dollar rise in the 1990's.

http://www.youtube.com/watch?v=trK87m-DWxg

well the great british dollar strengthened considerably after our bout of QE didn't it?

ofc this makes sense because faced with

1) a currency issuer intent on seeing haircuts all round, a high valued currency and general domestic collapse

and

2) a currency issuer comitted to no nominal defaults, a competitive currency and healthy domestic demand

which would you pick?

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well the great british dollar strengthened considerably after our bout of QE didn't it?

ofc this makes sense because faced with

1) a currency issuer intent on seeing haircuts all round, a high valued currency and general domestic collapse

and

2) a currency issuer comitted to no nominal defaults, a competitive currency and healthy domestic demand

which would you pick?

But who is who in that scenario? Or will it be like the Waltz, with each of the sovereigns holding hands and spinning round the floor in a never ending dance?

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Interesting, and plausible...this is the same feedback loop that caused the last major dollar rise in the 1990's.

http://www.youtube.com/watch?v=trK87m-DWxg

This is a thesis that was tested in the middle of 09 with QE1 IIRC. The idea was that QE1 was working and the US recovering so well that the stock market was becoming a very attractive investment destination, coming off its lows. We know what happened since. At the moment, I don't think anyone seriously believes this story and this is just talk to fend off international criticism of the Fed's actions (wasn't it Bullard who said this a few days ago?)

The two episodes that I can recall where the USD went up as a result of international investment flows were the early 80s (Interest rates toping in the US, US bonds were extreeemely attractive) and the late 90s with the dot com boom. These were big events/stories, I don't think anyone is predicting a similar scenario for the US today.

I think what Bullard meant to say is that yes the USD would fall (unspoken) but that as the economy got better it would recover (but not likely).

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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