Reply #20: The value of the dollar is falling because....... [View All]

[DJ13]

.........the Fed is being stupid.



The Fed is trying to increase growth by lowering interest rates to help the Wall Street crowd instead of dealing with the critical issue at the heart of all our problems, inflation.

Reducing Fed rates devalues our currency.

Inflation happens to countries that have devalued currencies and import more goods than are exported.

Our credit crisis is due to the rate of inflation (the real inflation, not the sexed up government "core" rate) being so high for so long that wages havent been increasing enough to keep ahead of the rising prices for everything because our imported goods keep increasing in cost to offset our devaluing currency.

Putting it another way, if people could afford the increased mortgage payments there would be no credit crisis now.

It all relates to the Fed and their low interest rate policies devaluing our currency.