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Old 04-22-2008, 05:25 PM  
TheMaster
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Join Date: Nov 2003
Location: Prague
Posts: 2,733
Quote:
Originally Posted by fluffygrrl View Post
The fed has every cause in the world to lower the usd :

All outstanding treasury debt is denominated in USD.
All federal reserves (bullion, strategic commodity reserves, foreign bills and securities) are NOT denominated in the USD
A weaker dollar will hurt imports.
A weaker dollar will boost exports.

Weaker dollar = goodness x4.
you overlook the fact that the lowering of the intrest rate, make people sell their dollars, which in turn drives the dollar even more down, which makes inflation go up and purchasing power drop
+ the fact that every economist seems to be screaming that the FED needs to stop this
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