Will a federal bailout of Wall Street further devalue the US dollar?

[The Craw]

What effect will a federal bailout of Wall Street have on the value of the plummeting US dollar?

[shraby]

1. I don't know, but if the Dow goes back up,

that sure saves our retirement and everything we've worked for.

[El Pinko]

3. For the time being.

You can be certain that as a result of the bailout and ballooning debt, your retirement will be worth too little to support you thanks to hyperinflation.

[bigscott]

11. the dow has gone lower

a 25% drop is worrying to those that are retiring soon - but the Dow has been lower in the not too distant past and has come back. If we are handing out 700 BILLION to get the Dow UP a couple thousand points we are wasting our money

and it IS our money

peace

[anigbrowl]

2. Well, Duh. Of course.

[Javaman]

4. when you have a massive infusion of money into an already bloated money supply...

the value will go down and inflation will go up. economics 101.

but it doesn't end there. because the value of the dollar goes down so will the worth of t-bonds that are to be auctioned. you know t-bonds right? they are the things that are basically financing the US debt.

so in a short phrase this is only throwing bad money after bad.

[Romulox]

5. By definition, more money = less value per $. nt

[Not the Only One]

6. Yes. It increases the national debt and requires us to print more dollars.

Every dollar created dilutes the value of existing dollars in circulation. Those individuals who worked hard, paid their taxes, and saved some money for a rainy day are hit the hardest. Their dollars depreciate in value while earning interest that is kept artificially low by the Federal Reserve easy-credit policy. The poor and those dependent on fixed incomes can't keep up with the rising cost of living. All of the bailout spending, all of the spending on Iraq, it leads to inflation, particularly in fuel and in commodities that are dependent on fuel costs (fuel is dollar-denominated). Inflation by definition is an increase in the money supply, which is also used by the feds to buy Treasury bills to try to keep interest rates artificially low.

[dysfunctional press]

7. it would have the same effect that holding an anvil on a cliff has on wile e. coyote...

[galileoreloaded]

8. Absolutly, also look for a US Treasury bond rating cut from AAA....

This is SOOOOOO stupid. The bailout, not the question.

[The Craw]

9. Perhaps Bush thinks just printing more money is the answer

One would think we have monopoly money in our treasury with the ease at which it's printed...

[ancient_nomad]

10. To answer your question,

Here is an excellent thread posted by MadHound: http://tinyurl.com/4fqjx9

Welcome to DU! :hi:

[jannyk]

12. Hi Craw. Welcome to DU

:hi:

[sinkingfeeling]

13. Without fail.