Dollar in freefall...

[Subdivisions]

?s=NYBOT_DX&t=l&w=15&a=50&v=d12

Yes, it has been worse but the Fed rate cut yesterday is the last straw. Quantitative easing has already been employed a couple of times and the lag time has expired. Yesterday's Fed move means that the Fed is literally printing money which erodes Dollar value and this freefall will reach terminal velocity resulting in total collapse of economy.

I hope you are prepared.

[Dennis Donovan]

1. Freefall is the best description...

Shit!!!:scared:

[lib2DaBone]

2. Just great. Plus... OPEC is cutting 2 million Barrels....

Here comes $5 gas... "This is Dejavu all over again"

[kentuck]

3. And the Fed has cut its rate to 0%...

They have no more bullets in their gun. Their monetary philosophy is empty. Milton Friedman is dead. Allen Greenspan is grieving. Their entire world has been turned upside down.

[uppityperson]

6. When I heard that on the news I got a bad feeling in my stomach

[Boojatta]

7. 0% is better than investing with Madoff and losing the principal.

[enid602]

4. dollar

I´m mostly in non-Dollar equity and bond mutual funds, and my portfolio went down 15% during the financial crises, as the dollar mysteriously got stronger, despite so much bad news from the US. I assume that the US Dollar´s strength (and subsequent decline the last two weeks) is somewhat due to the deleveraging of our equity markets, given the number of margin stock called, hedge funds, etc. Now that the dollar´s declining, my previous losses are being reversed. There´s a possibility that I will end 2008 without any losses in my portfolio.

[Boojatta]

11. Fluctuations in the prices at which currencies are being exchanged...

means that some people who own foreign currencies may have an incentive to buy 0% US treasury bonds as a way to engage in currency speculation while minimizing all risks other than the obvious risk that they might not be successful in their currency trading.

[Boojatta]

5. Self-delete. Message was a reply to part of OP that has been edited out.

[Subdivisions]

8. Uh...

What?

[Mari333]

9. the more money we print

the more the money is monopoly money
i have already hunkered down so much my next step will be to use the wood framing on my house for fuel. thank god the 'dollar store' is only a half block away. maybe they should change their name.

[John Q. Citizen]

14. Yep, so if you owe money it's easy to repay it. Inflation is good for those who already carry debt.

But right now, inflation isn't a problem. (or solution) Deflation is more of a worry.

[BzaDem]

10. Saying the money has no value is a little misleading.

In a fiat money system, no printed money is actually backed by anything. The Fed is printing money which does have value (though the value will be slightly lower, as will the value of all dollars). This is necessary to prevent deflation. It is deflation that would result in a massive tailspin.

[Subdivisions]

12. You're right. Corrected my OP. n/t

[Strelnikov_]

13. Can we pay for the 67% of our petroleum we import at the old exchange rate?

No. Thought not.

May want to reconsider that SUV purchase.