Comments on: The US Dollar and the Limits of Irresponsibility http://alephblog.com/2008/04/19/the-us-dollar-and-the-limits-of-irresponsibility/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Mon, 13 Feb 2012 14:34:49 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Roberthttp://alephblog.com/2008/04/19/the-us-dollar-and-the-limits-of-irresponsibility/comment-page-1/#comment-17485 Robert Mon, 21 Apr 2008 19:05:28 +0000 http://alephblog.com/?p=656#comment-17485 That should read "the risk of a run on the dollar, although never high, has significantly increased due to recent Fed actions." That should read “the risk of a run on the dollar, although never high, has significantly increased due to recent Fed actions.”

]]> By: Roberthttp://alephblog.com/2008/04/19/the-us-dollar-and-the-limits-of-irresponsibility/comment-page-1/#comment-17484 Robert Mon, 21 Apr 2008 19:02:18 +0000 http://alephblog.com/?p=656#comment-17484 http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/v5SLFncnzYHc.asf This interview with James Grant on Bloomberg should be viewed by all who feel that the dollar will not fall further. He feels that the risk of a run on the dollar, although never high, has significantly due to recent Fed actions. http://www.bloomberg.com/avp/avp.htm?clipSRC=mms://media2.bloomberg.com/cache/v5SLFncnzYHc.asf
This interview with James Grant on Bloomberg should be viewed by all who feel that the dollar will not fall further. He feels that the risk of a run on the dollar, although never high, has significantly due to recent Fed actions.

]]> By: Darrellhttp://alephblog.com/2008/04/19/the-us-dollar-and-the-limits-of-irresponsibility/comment-page-1/#comment-17480 Darrell Mon, 21 Apr 2008 02:31:26 +0000 http://alephblog.com/?p=656#comment-17480 The dollar became a reserve currency during the cold war, meaning that the dollar is accepted as legal tender in most countries. This means that you and I can use our dollars to go to a country and buy their goods, services and/or assets. Because the dollar is a reserve currency, the Federal Reserves excess production of dollars is soaked up by foreign buyers. The buyer of last resort is Central Bankers. And they are accepting dollars from their investors, merchants, etc. who exchanged their services, goods and/or assets for the dollar. In the end, it is the tax payer of that country that is bearing the loss in value of the dollar. The dollars decline may have stalled but I doubt very seriously that its worth has stalled or will rise in value. The Federal Reserve is simply printing too much money to try and resolve problems that they have no business trying to fix. The dollar became a reserve currency during the cold war, meaning that the dollar is accepted as legal tender in most countries. This means that you and I can use our dollars to go to a country and buy their goods, services and/or assets.

Because the dollar is a reserve currency, the Federal Reserves excess production of dollars is soaked up by foreign buyers. The buyer of last resort is Central Bankers. And they are accepting dollars from their investors, merchants, etc. who exchanged their services, goods and/or assets for the dollar. In the end, it is the tax payer of that country that is bearing the loss in value of the dollar.

The dollars decline may have stalled but I doubt very seriously that its worth has stalled or will rise in value. The Federal Reserve is simply printing too much money to try and resolve problems that they have no business trying to fix.

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