Dollar Falls Most Since 2000 on Fed’s Plan to Buy Treasuries
By Ye Xie and Molly Seltzer
March 18 (Bloomberg) — The dollar fell the most against the euro since September 2000 as the Federal Reserve said it will purchase $300 billion of longer-term Treasuries, spurring speculation the central bank is debasing the currency.
The greenback may extend its 5.6 percent decline against the currencies of six major U.S. trading partners since reaching the highest in almost three years in early March as the central bank prepared to flood the market with dollars. Citigroup Inc. currency analysts recommended adding to bets that the greenback will depreciate after it weakened beyond $1.34 per euro for the first time since Jan. 12.
Anyone care to explain how this is a good thing? Does the FED expect this to make US goods more attractive to foreign buyers? Is this supposed to increase demand for US products or services? If that is true then apparently we don’t need more jobs to put cash in the hands of consumers to spend our way out of this. Then we don’t need the stimulus. Nor do we need the bailouts. Rather than send jobs overseas we can create demand for US goods overseas. Sure, the economic downturn is not a global crisis. Foreign consumers can buy what we’re not producing.
Problem solved.
Stanford Matthews
MoreWhat.com
This entry was posted on Wednesday, March 18th, 2009 at 9:22 pm and is filed under Public Affairs, Money Matters, wordpress, United States.
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