What If the Dollar Falls?

[Walt]

When was the last time the Fed contracted the money supply?

For about a year, the money supply has been falling.
https://tradingeconomics.com/united-...oney-supply-m1

https://www.forbes.com/advisor/investing/quantitative-easing-qe/

We are now in quantitative tightening, the opposite of quantitative easing.

Standard Disclaimer: 2008, as part of the TARP response to the financial crisis. When Obama took office in 2009 - this was reversed and the Fed engaged in aggressive QE, throwing the the nation into deep recession.

So many things wrong in your tiny statement. Quantitative easing started in 2008, when Bush was President, not when Obama was President. TARP was never "reversed", in fact, it was extended by Obama. TARP and quantitative easing are for very different purposes. Quantitative easing did not throw the country into a deep recession, it staved off deflation, which would have caused a depression. In fact, it also fought having a recession, but that was not its intent.

 

[Dutch Uncle]

In a country with a growing population?

Australia has the same population as the US...during the American Civil War....with about the same land mass as the Continental USA.

Like the US, the vast majority of the Aussies live on the coastline. The US population is over 11 times that of the Down Under monarchists.

 

[Dutch Uncle]

"Growing" through an illegal alien invasion perpetrated by Xi's Biden regime.

The US should have let the Japanese cull you dumbasses before conquering them ourselves in WWII.

 

[Into the Night]

At first you said money when you meant currency. They're not the same thing.

Currency is money. Money uses currency.

You did correct yourself but I think that was purely accidental.

Nah. You just want to make a semantics fallacy.

Explain how a dollar backed by anything subject to the vagaries of the market can possibly be considered a currency that stores wealth asshat.

RQAA. Stop mindlessly asking the same question over and over that's already been answered.

 

[Into the Night]

I hate to agree but they've left me no choice. Some of these "patriots" are the most economically illiterate people I've ever encountered.

You are describing yourself, and you are no patriot.

 

[Into the Night]

How? Wealth is wealth, you can denominate it any way you want. The Fed doesn't just create dollars, they destroy dollars too.

Money is not wealth.
The Fed is not destroying dollars.

 

[Into the Night]

The CBDC as proposed is un-Constitutional because it doesn't store wealth and the Constitution requires the federal government to provide currency. Plus, a CBDC would destroy the dollar as a reserve currency and the east coast nitwits in charge right now need it to be the reserve currency. The CBDC is just a psyop.

The Constitution does NOT require the federal government to provide currency. Discard of the Constitution of the United States.
The dollar is a fiat currency at the moment. It has no inherent value, and it is losing value fast against wealth.

 

[Into the Night]

Those dollars are just going to be re-denominated.

That's a crash of the dollar.

For you to be correct the wealth would have to be doubled...

Money is not wealth.

in the new currency AND remain in dollars too.

Generally, once a fiat currency crashes, people no longer accept it.

That doesn't happen. You have nothing to worry about.

It does happen. It has happened to other nations. The dollar is not immune.

 

[Into the Night]

Why?

RQAA. He already answered your question. Stop mindlessly repeating your question.

You do know of course that there are currently many reserve currencies...right?

Which was his point. You just agreed with him.

 

[Dutch Uncle]

RQAA.

Retarded Qanon Angry Asswipes.

That fits you, Sybil.

 

[Into the Night]

Many people in this forum will not believe this, but the money supply has been falling for about a year now.

Blatant lie.

Nixon's Treasury, Connally, famously said to foreign counter parties, "The Dollar is our currency, and your problem."

I read a paper once that claimed that if the Dollar was no longer the world currency, but did stay a major enough currency that we could still sell bonds in our own currency, much like the British Pound, the US economy would lose about $40 billion a year. That is a lot of money on one level, but in an economy of $25 trillion economy, it would be nearly impossible to notice.

The dollar is not a world currency. Dollars are not bonds. The British Pound is currently also a fiat currency, with no backing whatsoever. The British are having the same problems we are, and for the same reasons.

And again, there is no currency that would obviously be better than the Dollar. In fact, the Dollar looks better and better compared to everyone else.

Dollars won't buy you anything in any nation besides the States. You must first convert to the foreign currency.

If the foreign countries could suddenly be released onto the exchange markets,

They are already there.

then maybe it would cause damage, but even there why.

RQAA.

It would cause other countries more damage than us.

It does not cause any country damage to convert dollars to their local currency.

And that is not possible.

Conclusion based on contrivance.

Much of the foreign reserves are stored in bonds that mature over years.

A reserve is not 'stored'. It is money.

The Chinese in particular use long dated bonds.

Bonds are not money. They are not a 'reserve'.

The Chinese would be forced to sell about $2 trillion over 20 years, or about $100 billion a year. Again, we would barely notice it.

A bond is not money. Selling a bond does not affect the obligation of that bond at all.

 

[Into the Night]

A CBDC would make the fed legally on the hook for US debt. No private bank would allow for such a thing. I guess we can rule out the fed issuing a digital currency. Oh wait.

Money is not a bond.

 

[Into the Night]

When was the last time the Fed contracted the money supply?

https://www.forbes.com/advisor/investing/quantitative-easing-qe/

Standard Disclaimer: 2008, as part of the TARP response to the financial crisis. When Obama took office in 2009 - this was reversed and the Fed engaged in aggressive QE, throwing the the nation into deep recession.

The Fed has NEVER contracted the money.

 

[Into the Night]

In a country with a growing population?

Irrelevant. People are assets, not liabilities.

 

[Into the Night]

For about a year, the money supply has been falling.

Blatant lie.

We are now in quantitative tightening, the opposite of quantitative easing.

Blatant lie.

So many things wrong in your tiny statement.

Inversion fallacy.

Quantitative easing started in 2008, when Bush was President, not when Obama was President.

Blatant lie. Quantitative easing started in 1933 and has been with us ever since.

TARP was never "reversed", in fact, it was extended by Obama. TARP and quantitative easing are for very different purposes. Quantitative easing did not throw the country into a deep recession, it staved off deflation, which would have caused a depression. In fact, it also fought having a recession, but that was not its intent.

Irrelevant. Obama devalued the dollar to just half it's value at the start of his term. The Crash of '07 and Obama's response to it caused an economic depression (Obama called it the 'new normal'), that lasted until about a year into the Trump administration.

Another economic depression was caused by Democrats when they shut down businesses as 'non-essential' and curtailed business activity during the covid19 hoax and fear mongering. We are still in that economic depression. Again the dollar has lost half it's value since then.

 

[Dutch Uncle]

Blatant lie.

Blatant lie.

Inversion fallacy.

Blatant lie....

You forgot Really Quirky Asinine Assertion (RQAA)

 

[Celticguy]

Quantitative easing started in 1933 and has been with us ever since

We are doing QE AND QT

we had to QE for the recent banking emergencies.
we are also QTing about 95 B a month which is hurting the Fed as its selling the shit paper it was buying at a loss, a BIG loss which just might sink them.

and as BRICS and its many other countries jumping on their bandwagon countries will need fewer dollars and will dump them back on us lowering their value making cash into trash.

many many many bombs fixing to all blow up any time.

 

[goat]

Money is not a bond.

The dollar will fall, eventually, but it took Rome 300 years to fall. The police have been militarized and are ready for any run on the banks.

 

[ptif219]

Against what? That is a serious question. What is out there to replace the Dollar? Everything out there is either falling against the Dollar at official rates, or against the Dollar at blackmarket rates. Every businessman in China is desperately trying to get Dollars. Russia is stuck accepting non-tradable Yuan.



The Fed does not feed dollars into the budget, so you are mostly wrong. There was quantitative easing, which did mean that the Fed was printing money to feed indirectly into the budget, but that ended years ago. We now have quantitative tightening. The Fed is in the process of selling the bonds they bought to destroy $2.5 trillion.

This is causing the money supply to CONTRACT. They are not creating more, but rather destroying more.



Not in the last 80 years. You are living in a fantasy world.

So you have no clue what is happening in the real world. The problem is not just the dollar but also we are no longer trusted by many when they see Biden as an old weak leader. The US is losing it's status and it's power and losing it's currency as the international currency would hurt in ways many do not understand


https://www.foxbusiness.com/economy/could-us-dollar-lose-reserve-currency-status-china#

https://www.firstpost.com/explainer...dollar-trade-india-china-russia-12403612.html

 

[ptif219]

Which means that Joe Biden wants to replace the dollar with the yuan as the international currency.

Xi's man Quid Pro wants what's best for China.

Many are already using China's currency