Dollar Doomsayers Draw Signs From Bernanke Rate Cuts

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Dollar Doomsayers Draw Signs From Bernanke Rate Cuts (Update1)

By Bo Nielsen


March 17 (Bloomberg) -- Ben S. Bernanke's interest-rate cuts have touched off a vicious circle of doom for the dollar.

The Federal Reserve reduced the rate on direct loans to commercial banks by a quarter-point to 3.25 percent before Asian financial markets opened today. It will likely lower its target rate for overnight loans between banks tomorrow to at least 2.25 percent from 3 percent, according to futures traded on the Chicago Board of Trade. Lower borrowing costs work against the dollar by making fixed-income securities issued by the government less appealing to global investors.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aS87YcPKuDDE&refer=worldwide
 
Chinese currency is supposed to be stronger than the Dollar but the dollar is supposed to be stronger than every other currency. It's unfair for other nations to have a weak dollar while it is damaging for us to have one.
 
Life isn't fair and if we hadn't spent before we were able to pay, we wouldn't be in this crisis.
It is over simplification, but that is the bottom line, we are in the red.
 
Yep both the people and the govt have been living on credit, the bills are coming due, and there is no more credit or income to pay em off.
 
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