Re: Dollar coming to an end

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

Quote from: Barabbas0 on December 27, 2014, 04:05:34 PM

Quote from: Q7 on December 27, 2014, 03:10:48 AM

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.

What you describe was operation twist. The FED was buying 85 Billions MBS and US bonds a month and they didn't sell any

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.

The FED didn't unwind its balance sheet and didn't raise rate so we are still in a very lose monetary policy environment with a weak economy. The public debt is still growing fast and the Dollar will likely start crashing in 2015 or 2016

lol, okay. As soon as you start pulling dates out of thin air with no evidence I know you're full of shit. You can spew anti-US FUD, doesn't make it true.

The FED didn't unwind its balance sheet and didn't raise rate so we are still in a very lose monetary policy environment with a weak economy. The public debt is still growing fast : those are facts we agree on

Yeah, so what? USD is still the world's safest asset.

By the way, I don't think you understand how QE works. The Federal Reserve issued low interest short term bonds to buy back high interest long term bonds. Also, the US is anything but a weak economy. It's been 6 years since recession, get over it.