Is there a conspiracy to artificially devalue the American Dollar.?

[52ndStreet]

Is there an ongoing conspiracy to devalue the American Dollar. It seems to me that during certain points in the year, the American dollar goes down in value for no apparent reason.

This has occurred on more than one occasion over the past few years now.

If yes, who are the people , and or governments responsible for this artificial devaluation of the Dollar.

What purpose, other than making American exports more attractive for purchase, is there
behind this devaluation.

What are the long term effects of this artificial devaluation of the American Dollar.?

I would appreciate any educated responses.

 

[uscitizen]

Artificially ? lmao

 

[52ndStreet]

Artificially ? lmao

I said I need detailed educated responses, not one liners.!!

 

[Limey]

What are the long term effects of this artificial devaluation of the American Dollar.?

We have trade imbalances that are arguably unsustainable. Typically folk will respond that we need an exchange rate correction, with the devaluation of an artificially high dollar required. I'm not so sure. Given any significant deterioration in the dollar is likely to be destabilising, a more attractive option will refer to savings rates. It therefore becomes a specific example of the transfer problem, where we need to see spending transferred from trade deficit countries to trade surplus countries. It is therefore about international co-operation over international savings imbalances, with the joint co-ordination of macroeconomic policies required.

 

[Oddball]

Is there a conspiracy to artificially devalue the American Dollar?

It's been business-as-usual since 1913.

 

[52ndStreet]

What are the long term effects of this artificial devaluation of the American Dollar.?

We have trade imbalances that are arguably unsustainable. Typically folk will respond that we need an exchange rate correction, with the devaluation of an artificially high dollar required. I'm not so sure. Given any significant deterioration in the dollar is likely to be destabilising, a more attractive option will refer to savings rates. It therefore becomes a specific example of the transfer problem, where we need to see spending transferred from trade deficit countries to trade surplus countries. It is therefore about international co-operation over international savings imbalances, with the joint co-ordination of macroeconomic policies required.

As a student of macroeconomics also , I ask you how are these policies that you suggest going to be effectively implemented.?

 

[Oddball]

As a student of macroeconomics also , I ask you how are these policies that you suggest going to be effectively implemented.?

By force, at gunpoint if necessary.

Our pal Limey is a committed red.

 

[Limey]

As a student of macroeconomics also , I ask you how are these policies that you suggest going to be effectively implemented.?

And that's indeed the difficult bit! In the past we've seen international exchange rate corrections. Given the imbalances that exist, the evidence suggests that this isn't a practical option. The macroeconomic policies have to focus on changing savings rates. Failure to co-ordinate those changes could lead to future instability disaster

 

[Neubarth]

What are the long term effects of this artificial devaluation of the American Dollar.?

We have trade imbalances that are arguably unsustainable. Typically folk will respond that we need an exchange rate correction, with the devaluation of an artificially high dollar required. I'm not so sure. Given any significant deterioration in the dollar is likely to be destabilising, a more attractive option will refer to savings rates. It therefore becomes a specific example of the transfer problem, where we need to see spending transferred from trade deficit countries to trade surplus countries. It is therefore about international co-operation over international savings imbalances, with the joint co-ordination of macroeconomic policies required.

Actually, it is to America's industrial advantage to devalue the dollar. Unfortunately the rest of the industrialized world will not let us do so, so they can preserve jobs in their countries. Those people in the other industrialized countries are greedy sons of bitches.

 

[antagon]

as opposed to monetization in the 70s, the voodoo style looks to broaden (volume) the dollar as a virtue independent of heightening it (value). the dollar has expanded into hands around the world, such that emerging economies' growth is pegged to the dollar, most notable is china's. they say let the pound and euro soar, they'll never attract the investment that the dollar does, and their businesses never attract the investment, nor exportability that dollar-businesses do on investment or wares markets.

now has the proportion and scale of this policy run wild? do politicians have the awareness that the reagan-era politicians had when this style came to force, such that they can nurture it? unmoderated as i think it is it will have to go bust to a greater degree than we've seen before a change of course, but so long as the scale of the disaster is global, the negative effects will be taken on a curve.

 

[Neubarth]

If the dollar were to go down further, Mexico and most of central America would peg their currencies to the Dollar.

 

[Toro]

There is no conspiracy. They are doing it right out in the open and telling you so.

 

[Oddball]

There is no conspiracy. They are doing it right out in the open and telling you so.

Since 1913.

Also, Hanlon's Razor fits in nicely here.

 

[slackjawed]

There is no conspiracy. They are doing it right out in the open and telling you so.

Since 1913.

Also, Hanlon's Razor fits in nicely here.

and it is not artificial

 

[hjmick]

There is no conspiracy. They are doing it right out in the open and telling you so.

Since 1913.

Also, Hanlon's Razor fits in nicely here.

That'll have some people visiting Google...

 

[Neubarth]

There is no conspiracy. They are doing it right out in the open and telling you so.

Since 1913.

Also, Hanlon's Razor fits in nicely here.

That'll have some people visiting Google...

Absolutely, the Economy works best with a slight amount of inflation every year. I note that while the dollar has experienced that gradual inflation, the Mexican Peso (Remember that Mexico is an oil exporting country) has lost many times more value.

When I was a boy of 12 living down in Mexico in 1958 - 59, the Peso was pegged at 12.50 to the dollar. That ironically is what it is worth now, give or take a penny. So, at first glance it would appear that the Peso has fallen as much as has the dollar in half a century.

The only problem is that Mexico defaulted on its foreign debt in 1982 and in 1993 replaced one thousand of the old Pesos with a single New Peso.

So Mexico has experience all of our inflation AND a 1000 percent loss. And you think we have it hard.