2/3 Random economics question: So the dollar keeps getting hammered.
Eventually, as I recall dimly from Econ 1 ages ago, this can cause
Real Bad Stuff to happen. When does this bad stuff kick in, and how?
And what is it?
\_ It depends on how fast it declines. If it happens fast then you
get things like a run on the banks and then we're all fucked. If
it happens slowly enough then you get a shift from imports to
exports, some jobs move around, good for some, bad for others.
\_ This is a big question and the answer is not universally
agreed upon. But some of it is already kicking in, in the
higher prices for oil and other imported goods. If it leads
to asset flight, the effects would be much stronger: falling
stock markets, raised interest rates and falling real
estate prices. Right now, the Japanese govt is propping
up the US dollar to the tune of $90B/mo, yes that is
$1T/yr at the current rate. Who knows how long this
can last.
\_ I thought it was China.
\_ http://business-times.asia1.com.sg/story/0,4567,106947,00.html
This article says 7T Yen last month, or about $65B.
China is also buying up US bonds, dunno how much.
\_ if oil is going up how come my gas prices are going down?
\_ You sure about that?
link:csua.org/u/5tu
(LA Times)
\_ Yes. I don't pay the LA Times to tell me what my gas
prices are. I see my CC statement every month and the
numbers posted all over Bay Area gas stations. |
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