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Thoughts on the Dollar


Cordell

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You are silly if you think there is a model to tell "exactly what will happen".

 

You must be the most proficient investor in the world.

 

That theory is simple. Holding velocity constant, the more money you print, or in this case any time the government engages in open market operations, or loosens monitary policy, the less the dollar becomes worth. Inflation rises.

 

Now, note that I said we are holding velocity constant. Its a given that we have printed a fuck ton of money. The reason inflation isn't kicking in is because velocity is low. Velocity is the amount of times a dollar changes hands in a given period of time. If velocity increases to pre recession levels, then we will see the full effects of inflation and all this money we printed.

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That theory is simple. Holding velocity constant, the more money you print, or in this case any time the government engages in open market operations, or loosens monitary policy, the less the dollar becomes worth. Inflation rises.

 

Now, note that I said we are holding velocity constant. Its a given that we have printed a fuck ton of money. The reason inflation isn't kicking in is because velocity is low. Velocity is the amount of times a dollar changes hands in a given period of time. If velocity increases to pre recession levels, then we will see the full effects of inflation and all this money we printed.

 

I always thought the angle of the dangle was equally proportional to the heat of the beat.

 

 

But to be serious we are fucked when and if things get back to normal.

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I don't understand how the government can spend its way out, that's for sure. We've spent some 37 billion dollars on unemployment "benefits" in the last few years, all thats going to do is raise taxes for businesses and keep more people unemployed.

 

 

Too many democrats in power.

 

Weren't the republicans in power the last few years? :rolleyes: lol

 

Fixed

What he said that didn't get quoted. > "Too many politicians in power."

 

itt: people who don't have a full grasp on economics.

 

on topic: Yeah, its the gold companies buying gold, so they can sell it back to you in the form of some stupid glen beck coin at a highly inflated cost in order to prevent americapocalyse.

lol

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