U.S. calls Thailand, Vietnam currency manipulators in Trump trade shot

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3 minutes ago, John Drake said:

 

Yes, the 2017 tax cut for billionaires and bankers played its role. But so is the Fed monetizing the debt. Taxes should be raised. But not just on salaries. Really rich people don't have them. Tax their assets, the value of their stocks at the end of the year, their houses over $400,000 in value, any items they have insured for over $50,000. But don't punish savers and retirees with zero percent interest rates, just so corporations can issue no interest loans for themselves. And what about all the money last spring that went directly to the likes of Boeing, the airlines, and cruise lines? Why weren't they made to sell their assets and stocks before being made eligible for free government money? And then why not reduce the debt? Why was the debt increased for the likes of the big corporations and tech companies, while every day people were bought off with $1200? If you don't think that stimulus (i.e. printing money out of thin air) is driving down the dollar, why has it dropped off a cliff? The only people demanding dollars are the Fed and the banks in its treasury issue endless loop.

I agree with most of what you're saying with possibly a few quibbles

. But has the dollar really dropped off a cliff?

It was lower in 2018. And keep in mind that the Treasury is able to sell all the bonds it needs to at virtually 0% interest and probably could do it at a negative rate. So there's clearly still a lot of demand for dollars. The value of the dollar only shot up when the Treasury raised the interest rate. When it was reduced the value of the dollar went back down again.

[John Drake]

22 hours ago, placeholder said:

I agree with most of what you're saying with possibly a few quibbles

. But has the dollar really dropped off a cliff?

It was lower in 2018. And keep in mind that the Treasury is able to sell all the bonds it needs to at virtually 0% interest and probably could do it at a negative rate. So there's clearly still a lot of demand for dollars. The value of the dollar only shot up when the Treasury raised the interest rate. When it was reduced the value of the dollar went back down again.

 

Because the Fed is buying them. And don't look now, but the Fed just eliminated the ban on stock buybacks for banks yesterday. Within minutes, JP Morgan announced a $30 billion buyback program. This is the same JP Morgan that made almost $1 billion off administering CARES loans to customers to prevent those customers from defaulting on loans owed to, you guessed it, JP Morgan. So instead of being hurt during the spring Covid "recessions," JP Morgan made a profit. Instead of selling their sky high stock to pay for any expenses, they got government bailout money. Now, they're going to take those profits to do more stock buybacks, push their stock price higher, and rake in executive bonuses. All with your tax dollars. But you can still celebrate over the $1200 the government sent you last April. What a criminal enterprise it all is.