NO YOU CAN'T FIGHT THE FED!!!!

NO YOU CAN'T FIGHT THE FED!!!!
The old saying "You can't fight the Fed" has never been more true than it is today. It may have just taken on a little different meaning. You can't fight the Fed in this environment because their relentless printing of money will cause the value of the dollar to decline. Maybe it really had to be done to save the banking system (but right or wrong printing money will have the same effect--it will decrease the value of the dollar). I hate to continually make the weak dollar argument as it almost seems unpatriotic, but you cannot deny the effects of the Fed's recent actions. I have gotten many responses arguing that the dollar is still the world's reserve currency and will remain so as we pull out of this crisis. But is this time different? I would argue that it is. Let me say one more time that China is still growing (growth is declining, but growth is still growth). Is China poised to gain some of the market share of the "reserve currency"? They are positioning themselves to do just that.
Read the rest of the article at www.stockshotz.blogspot.com

yes, that is an interesting article. but this is the third time it has been posted here!

Edited by humble1, 30 December 2008 - 06:03 AM.

Uhm, yeah. Keep more content here. We don't exist for you to drift off with our traffic. M

True that they're printing money. The question is, how much money are other governments around the world printing? Because the dollars value is relative to all of them. A short answer...they're all printing. IT

True that they're printing money. The question is, how much money are other governments around the world printing? Because the dollars value is relative to all of them. A short answer...they're all printing.

IT

IT is right. Except possibly Switzerland, they are all cranking up the presses. Did any one
notice drop in British Pound?

Also not to be overlooked is the velocity of money...which is a required ingredient for inflation.
(which devalues dollar directly and indirectly)

All these Billions of dollars in Bailout money to Wall Street banks is in form of loans. Those banks
in turn have to find customers WILLING AND ABLE to take loans out in order to spend the money.

Those banks don't go to Wal-Mart and buy up "stuff". Therefore if the money is just sitting on their
book waiting for businesses and individuals to borrow, it does not speed up money flow.

Central banks are Ponzi schemes. Sooner or later they all will come to an end when there aren't any more suckers to take on the new debt that you need to keep it going. In the case of the US, we're very close to the end, as printing much more money will cause a negative effect in the GDP. They were of late to the point where they had to get people to buy houses who couldn't afford them, this was done on purpose to squeeze a bit more time out of the scheme.