The Fed has effectively killed it with massive dollar selling of the past two months.
The good news is, they will have a huge profit on their foreign currency position.
The bad news is, it translates into a decline in Americans' purchasing power.
But, hey, at least taxpayers are getting "payback," right?
Maybe they'll divvy up the Fed's trading profit and send us all a check!
Don't hold your breath.
how long until the GBP gets back up ?
ReplyDeletethey are talking 2 basis points reduction in UK alone which will soften the pound more.
HEY - it all makes a little more sense - all the foreign Doom and Gloom for the USA is a function of those economies' auto-forecast -
if the USA goes down, so goes the rest of the fold. if the USA goes up, so goes the rest of the fold.
AT least it's mainly our volatility and everyone else is on for a ride.
They are only projecting their fears of their country on to their conception of the USA.
the Germans appear to be more confident though they "are not a sovereign nation unable to print their own money without going bankrupt"
Again - if we keep printing money and lowering interest rates, are the Feds up to the old trick of creating a follow up inflationary bubble which manifests differently ?
Pound on its way back up.
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