Comments on: US Dollar Poses Grave Risk to World Economy http://www.dailyreckoning.com.au/us-dollar-risk/2007/10/25/ An independent perspective on the Australian and global investment markets Fri, 19 Mar 2010 03:28:55 +0000 http://wordpress.org/?v=2.8 hourly 1 By: Coffee Addict http://www.dailyreckoning.com.au/us-dollar-risk/2007/10/25/comment-page-1/#comment-4069 Coffee Addict Fri, 26 Oct 2007 00:09:22 +0000 http://www.dailyreckoning.com.au/us-dollar-risk/2007/10/25/#comment-4069 Many Australian embassies also look like prisons on both the inside and the outside. Agreeing with Bill, what more can I add? If the Federal Reserve truly believes that a dumping of the dollar could wreck both the US economy, the Federal Reserve WILL NOT LOWER OFFICIAL INTEREST RATES AS THE MARKET EXPECTS. I also guess most Government economists view a significant equity market correction to be overdue in any case. Going back to what has been said by commentators previously, a primary Federal Reserve interest is stated to be the orderly operation of markets. Despite all the tongue and cheek rhetoric around here (I'm guilty of this as well) we all studied the same economic text and we all know that the coefficient of (negative) correlation between US dollar value and US interest rates is currently very very high. This is because other fundamental strengths that existed during the Greenspan era are no longer present (Bill, Dan & Adrian keep repeating themselves on this critical point). Very happy for the cast of characters here to criticise or support this angle of thinking. Many Australian embassies also look like prisons on both the inside and the outside.

Agreeing with Bill, what more can I add? If the Federal Reserve truly believes that a dumping of the dollar could wreck both the US economy, the Federal Reserve WILL NOT LOWER OFFICIAL INTEREST RATES AS THE MARKET EXPECTS.

I also guess most Government economists view a significant equity market correction to be overdue in any case.

Going back to what has been said by commentators previously, a primary Federal Reserve interest is stated to be the orderly operation of markets. Despite all the tongue and cheek rhetoric around here (I'm guilty of this as well) we all studied the same economic text and we all know that the coefficient of (negative) correlation between US dollar value and US interest rates is currently very very high. This is because other fundamental strengths that existed during the Greenspan era are no longer present (Bill, Dan & Adrian keep repeating themselves on this critical point).

Very happy for the cast of characters here to criticise or support this angle of thinking.

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