Post
Topic
Board Economics
Re: Dollar coming to an end
by
Barabbas0
on 27/12/2014, 20:09:13 UTC
dollar is the one only good for investment

It has been a good investment sometimes but it is one of the worst investment among the big choices an investor has right now

USD Interest rate has been maintained too low for a long time and it looks like there is a pressure within to hike the rates or else overall it is will be bad in long term.

USD interest rate is low right now because Asian and European investors don't want to invest in those markets. Japan's economy is tanking fast and Greece is starting to spread contagion fears throughout Europe. Money is flooding into US bonds. As bonds get purchased, their prices rise. When their prices rise, yields decrease, due to the fixed coupon payments. As a result, US interest rates are flat, just because of the rush of foreign capital.

The FED is keeping the interest rate at zero

You do realize there's a bond market, right?
The bond market is being manipulated by the fed via QE as well as the fed's promise to keep short term interest rates low for a long time. There are people speculating that the fed will continue to keep short terms rates low which pushes the market rate for longer term bonds low as well

QE already ended. Please, your right wing fears are entirely unfounded. Go back to hoarding gold and whining about monetary inflation.