Can the GFC Mk II wait for Donald Trump?

Doc67 · Post by **Doc67** » Thu Aug 15, 2019 7:11 am

LaudJohn wrote: ↑Wed Aug 14, 2019 3:49 pm
cptrelentless wrote: ↑Tue Aug 13, 2019 4:38 pm The US just needs to raise interest rates, the value of the dollar will drop and voila! Instant shrinkage of the debt.
Please explain?

I think it's the opposite.

Increase rates to increase incentive to hold or purchase a currency or to stabilise a plunging currency (GBP in 1992 going from 8 -10 -12-15% in ONE DAY).

Lower rates to discourage speculative holding; see the Swiss franc and their negative interest rates since 2015 to stop their currency rising too high.

There are other reason to alter interest rates, for example to cool or stimulate the economy, but for a quick blast of currency movement then a tweak in rates normally does the trick. The problem is the financial sector know this all well in advance and place their bets early and most rate changes are priced in before any official announcement.

IraHayes · Post by **IraHayes** » Thu Aug 15, 2019 7:13 am

frank lee bent wrote: ↑Thu Aug 15, 2019 7:02 am 800 points crash on the djia and inverted yield for bonds
historic indicator for recession
tomorrow probably worse

The fed would like unrestricted immigration as this transfers money from salaries to profits. Therefor they have been slow to lower interest rates to nudge the chance of a recession along in the right direction.

China is just waiting for a weak president to be elected so they can continue to Fock the USA..... happy times ahead... the Dems will get their presidency, China will make the US bend over and the average American will be replaced by imported cheap skilled and unskilled labour.

Stinkman · Post by **Stinkman** » Thu Aug 15, 2019 8:03 am

LaudJohn wrote: ↑Wed Aug 14, 2019 3:49 pm
cptrelentless wrote: ↑Tue Aug 13, 2019 4:38 pm The US just needs to raise interest rates, the value of the dollar will drop and voila! Instant shrinkage of the debt.
Please explain?

The explanation is.....his point is completely wrong. A country raising interest rates increases the value of their currency as people chase higher yields.

frank lee bent · Post by **frank lee bent** » Thu Aug 15, 2019 8:14 am

The chairman of the Fed is a Trump appointee.
Fiendishly clever those Democrats.

canucklhead · Post by **canucklhead** » Thu Aug 15, 2019 10:01 am

Isaanbarang wrote: ↑Wed Aug 14, 2019 10:11 am Insider trading season is year round.

nice 1

Duncan · Post by **Duncan** » Thu Aug 15, 2019 10:13 am

canucklhead wrote: ↑Thu Aug 15, 2019 10:01 am
Isaanbarang wrote: ↑Wed Aug 14, 2019 10:11 am Insider trading season is year round.
nice 1

Devastating for the Cambodian Stock Exchange.

LaudJohn · Post by **LaudJohn** » Thu Aug 15, 2019 6:05 pm

Stinkman wrote: ↑Thu Aug 15, 2019 8:03 am
LaudJohn wrote: ↑Wed Aug 14, 2019 3:49 pm
cptrelentless wrote: ↑Tue Aug 13, 2019 4:38 pm The US just needs to raise interest rates, the value of the dollar will drop and voila! Instant shrinkage of the debt.
Please explain?
The explanation is.....his point is completely wrong. A country raising interest rates increases the value of their currency as people chase higher yields.

The US debt is denominated in US dollars. No matter the exchange rate the debt will remain the same amount of US dollars.

However an increase in interest rates will lower the capital value of the exsisting bonds on the secondary market relative to newly issued bonds with a higher coupon (interest rate), but not a lot.

And you are right. Usually a rise in interest rates, especially in relation to other countries normally sees an increase in the value of the currency. There are exceptions, but as a general rule you are right.

Cooldude · Post by **Cooldude** » Thu Aug 15, 2019 7:17 pm

Interesting read. Dow futures have stabilized overnight.
https://www.foxnews.com/opinion/christi ... s-showdown

logos · Post by **logos** » Sat Aug 17, 2019 9:34 am

IraHayes wrote: ↑Thu Aug 15, 2019 7:13 am
frank lee bent wrote: ↑Thu Aug 15, 2019 7:02 am 800 points crash on the djia and inverted yield for bonds
historic indicator for recession
tomorrow probably worse
The fed would like unrestricted immigration as this transfers money from salaries to profits. Therefor they have been slow to lower interest rates to nudge the chance of a recession along in the right direction.

China is just waiting for a weak president to be elected so they can continue to Fock the USA..... happy times ahead... the Dems will get their presidency, China will make the US bend over and the average American will be replaced by imported cheap skilled and unskilled labour.

Who needs fox news when there is irahayes?
A strong contender for the alternative reality post of the week. Even cprelentless is being outflanked.

[Admin Edit: No need to come on here just to insult members. Thanks.]

IraHayes · Post by **IraHayes** » Sat Aug 17, 2019 10:09 am

logos wrote: ↑Sat Aug 17, 2019 9:34 am
IraHayes wrote: ↑Thu Aug 15, 2019 7:13 am
frank lee bent wrote: ↑Thu Aug 15, 2019 7:02 am 800 points crash on the djia and inverted yield for bonds
historic indicator for recession
tomorrow probably worse
The fed would like unrestricted immigration as this transfers money from salaries to profits. Therefor they have been slow to lower interest rates to nudge the chance of a recession along in the right direction.

China is just waiting for a weak president to be elected so they can continue to Fock the USA..... happy times ahead... the Dems will get their presidency, China will make the US bend over and the average American will be replaced by imported cheap skilled and unskilled labour.
Who needs fox news when there is irahayes?
A strong contender for the alternative reality post of the week. Even cprelentless is being outflanked.

So you think
1. unchecked immigration, as is being touted by all leading Dem candidates, won’t lower wages?
2. A weak president who caves to China is good?

Please clarify why

Can the GFC Mk II wait for Donald Trump?

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Re: Can the GFC Mk II wait for Donald Trump?

Re: Can the GFC Mk II wait for Donald Trump?

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Re: Can the GFC Mk II wait for Donald Trump?

Re: Can the GFC Mk II wait for Donald Trump?

Re: Can the GFC Mk II wait for Donald Trump?

Re: Can the GFC Mk II wait for Donald Trump?

Re: Can the GFC Mk II wait for Donald Trump?

Re: Can the GFC Mk II wait for Donald Trump?

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