LeeCarlson

Fed Beige Book's Benign Economic Picture Contradicts Real Estate Reality

Paul is right to some extent,..the treasury is flooding the world with bonds that are worth less each day, and trade deficits are enormous and have been for some time.
What it means is that the weaker dollar is forcing the oil producers to start to set prices by the Euro, not the dollar because the dollar is becoming worthless. This is already happening ! When the Euro first came out, it was pegged to the dollar and now the Euro is worth about 30 pct. more than the dollar.
The last few Presidents have listened to very bad advice. They agreed to Free Trade,..instead of Fair Trade. We cannot continue to import everything we need and pay with dollars that are worth less every day. That means imports are getting more and more expensive but our brilliant Fed. Reserve thinks this can go on forever !
On the plus side,..when the dollar gets cheap enough, jobs will come back to this country. This is one reason that oil is more expensive ! The dollar isn't worth much anymore and so it is being sold by a different standard, EURO's !
The Fed. thinks all they have to do is print more money to solve the problem but any first year student of Economics will tell you this cannot last long before the dollar won't buy anything from overseas and things purchased from this country are going to get less and less expensive for foreigners. !!
This country's products will become cheap again,..to foreigners, and they will be coming here for vacations , Disneyland, and winterhomes ! What we really need is a whole new bunch of people on the Fed. Reserve who really understand economics ! LC