US $

[pimpit]

My research on historical US$ values suggest that it is at almost bottom of the curve before the upwards trend. Although that is the case I see no sign of US economy recovering.

[Capitalist]

Then why are i-rates increasing as far as the eye can see?? That's logic for you. Good man. Anyhoo this should be on the off-topic board.

PS Or the FX board.

[belgarion]

Increasing i-rates could be increasing to stop the dollar falling through the floor ;)

[srotherh]

The understanding of the difference between "real" interest rates and "nominal" interest rates will occur to the market soon enough and will kill the theory that higher nominal interest rates are in any way dollar positive.

[belgarion]

srotherh, Care to elaborate? Bit cryptic for most of us. ;)

[Cooper]

I think Srotherh was saying that interest rates in the US are still negative in real terms. Money supply is increasing, and will continue to increase if real interest rates continue to be negative.

[srotherh]

You got it Cooper.
If true inflation figures were not doctored, they would be higher than the Fed (nominal )interest rate. Does that not make real interest rates negative.

[whatsup]

Geeezus Belg--- and here was I thinking that you had done Finance/commerce 1.01. The big picture is all coming together nicely!!!

[Cooper]

quote:Originally posted by srotherh

You got it Cooper.
If true inflation figures were not doctored, they would be higher than the Fed (nominal )interest rate. Does that not make real interest rates negative.




And with the increase in money liquidity, which tends to push prices up, lowered inflationary expectations and contrastingly higher real inflation, Greenspan will be happy he's about to retire.