I’d just like to send a special word of thanks to Chairman Bernanke on behalf of all the parts of the world that operate on dollars, or where the currency is explicitly or implicitly linked to the dollar.
Thank you…your actions are really helping to stimulate the economy (outside of the USA).
Example: These days you can borrow dollars for almost nothing and invest in property in Hong Kong or Dubai (where currency is tied to the US dollar), or in Tehran (where property is basically priced in dollars). Then you can watch it go up 20% to 30% a year in US dollars, gear that at 70% to 80% and all anyone can say is “Thank you!”
And on top of that, seeing as all the Zombie Banks don’t want to lend to anyone in the US and are instead using the money that the Fed is handing them for free to speculate, for example, on the price of oil. Could it go to $100? Perhaps $200?
That’s a brilliant idea; Americans are going deeper into debt so that they can pay more money for oil and increase their current account deficit.
Thank you. Thank you.
By the way, the low dollar won’t have any effect on house prices (that’s a different dynamic), or foreclosures (which are driven by that dynamic and negative equity), or unemployment (which is driven largely by the Zombie Banks that aren't lending), or exports (most of American which are sold on quality, not price).
