drogon Posted December 16, 2008 Report Share Posted December 16, 2008 Seems the euro is heading back to 50bht quite quickly...makes me happy (but I hope it will not be the case in one year) Link to comment Share on other sites More sharing options...
HeartThais Posted December 16, 2008 Report Share Posted December 16, 2008 "US rate cut towards zero expected"When/if they reach 0 -> what else can the USA do??? A US rate cut of 50bp is purely symbolic. The effective rate is already at 25bp, not the 1% target rate. US will do the things Japan did. In short, they will find other ways of injecting liquidity into the banking system. IMO, this will be of limited effect until we get through the worst of this recession - chicken or egg kinda thing. As Bernanke/Paulson found out, giving banks cash is much easier than getting them to lend in this kind of environment. This is a good thing though. Making bad loans to get through a recession is a short-sighted fix. Milton Friedman once suggested a theoretical solution of the government printing money and dropping it from helicopters for citizens to pick up and spend. That's how Bernanke got the nickname Helicopter Ben. Link to comment Share on other sites More sharing options...
drogon Posted December 16, 2008 Report Share Posted December 16, 2008 Wonder how the inflation is doing? Yes Japan found a solution but I don't think the USA could apply the same "recipe" and anyway I doubt many Americans are ready to "obey" the orders from the central bank/government like Japanese did.... Freedom a very "American" concept which might mean "doom" for the USA? Link to comment Share on other sites More sharing options...
drogon Posted December 16, 2008 Report Share Posted December 16, 2008 A little forecast: The Fed having just lowered its rate to between 0 to 0,25% the $ has dropped sharply against other currencies. -> if the US economy restarts slowly (or at least the financial markets stimulated by the various measures being implemented) I would say the USD will drop further against other major currencies..... Would be good for the services industry and exporters in the USA, not so good for US travelers... Would have loved a parity USD/euro and both being stronger against the bht but it seems that it was just a dream which will fade fast. (I could be wrong but not more than many financial analysts these last months) Link to comment Share on other sites More sharing options...
Hugh_Hoy Posted December 17, 2008 Report Share Posted December 17, 2008 Wonder how the inflation is doing? I believe that the"Cost of living" in the U.S. was a bit over 6% in the third quarter compared to the same figure in 2007. Most of that was due to oil and the fallout (production/transport costs). HH Link to comment Share on other sites More sharing options...
Badger77 Posted December 17, 2008 Report Share Posted December 17, 2008 My U.S. Dollar is exactly on a roll here in Japan. Yesterday, we only got 88 Yen to the dollar. I was getting 123 two years ago. My boss is 71, has lived here most his life and has never seen it this low. Link to comment Share on other sites More sharing options...
drogon Posted December 18, 2008 Report Share Posted December 18, 2008 Yes sadly and it seems the USD is continuing to fall. There are some people on this board who love to "compare" the USD with the euro... This is silly because if either of the two is in trouble then this has negative effects on the other. While we should try to "oppose" the yuan ... Link to comment Share on other sites More sharing options...
cavanami Posted December 19, 2008 Report Share Posted December 19, 2008 Yuan is Chinese...Yen is Japanese. Link to comment Share on other sites More sharing options...
drogon Posted December 19, 2008 Report Share Posted December 19, 2008 ??? Link to comment Share on other sites More sharing options...
drogon Posted December 19, 2008 Report Share Posted December 19, 2008 I am puzzled Cavanami as the yuan is the currency we have to fight....or do you prefer China to continue its "shopping spree" buying western assets? Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.