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The U.S. may (or may not) try to manipulate the Dollar downwards
CaptHenway
Posts: 31,564 ✭✭✭✭✭
I realize that this may never happen:
But if it does, what will be the effect on Gold?
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
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I saw that article.... It would certainly drive PM's up.... but since it is now 'news', I doubt it will happen, if indeed it ever was seriously considered. Cheers, RickO
It's the "new and improved" QE.
Let's be honest; it's called dollar devaluation. And if we continue to be honest it's really called "a dollar of less value."
Why America will devalue the Dollar
"Devaluing the dollar is an obvious and easy means of defusing the corporate debt bubble. Furthermore, dollar devaluation could defuse the student loan, auto loan, mortgage, and credit card bubbles."
Results of dollar devaluation:
-consumer price inflation
-encourages exports by making US products cheaper in global markets.
-discourages imports by making them more expensive.
-a weaker currency makes it easier to pay off debts.
-will help seniors with fixed mortgages because the government adjusts Social Security for inflation.
-extremely bullish for gold.
Gold? It will take more dollars to buy an oz. of gold. Gold will fulfill it's role as "dollar insurance," something denied by a few of the pundits here.
Give Me Liberty or Give Me Debt
Sure why not continue the demise of America. Slaughter the sheep to empower the Russian shepherds. Semper Fi! Carry on. lol
The whole worlds off its rocker, buy Gold™.
Prices will adjust upward accordingly.
Devaluation will be irrelevant if wages adjust upward proportionately. Unfortunately they don't/won't.
Give Me Liberty or Give Me Debt
there were many times in the past where the government tried to jawbone the currency around. that effect was short lived. the actual selling or buying of dollars could not compete with the size of the market forces. plans to buy or sell will not work in the end.
since the dollar is backed only by faith and trust i guess we will be devaluing that as well.
Consider what talk of devaluation will do to US bond demand.
Give Me Liberty or Give Me Debt
Pay gub'mint bills with newly printed notes
Where’s my darn tin foil hat?
Sell massive amounts of treasuries and use that money to manipulate the currency market
That promissory note has been devalued since 1913. Get used to the manipulation. It's been going on for 106 years.