Near zero: US Fed announces second emergency rate cut

Discussion in 'Current Affairs' started by ozcopper, Mar 15, 2020.

  1. GreatSouthernTime

    GreatSouthernTime Active Member

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    I need help to understand this, fed has committed 1 trillion to repo market, dropped rates and opening up QE4.
    Where does it go from here? If they won’t let the zombie banks and business fail what happens outside fed fairyland? Where do we go fro here?
     
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  2. precious roar

    precious roar Active Member

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    I guess they plan on more printing.
     
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  3. bubblebobble2

    bubblebobble2 Well-Known Member Silver Stacker

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    Get another 'special' Givt bonds made for Warren B... that was the last time they did in 2004 recession... can't see if any different to now...
     
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  4. 66rounds

    66rounds Well-Known Member Silver Stacker

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    we are all wondering the same thing. Surely they wont go down the Zimbabwe route of hyperinflation. Or will they as an excuse to scrap the dollar?
     
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  5. GreatSouthernTime

    GreatSouthernTime Active Member

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    that’s another interesting point, we have Russia and Saudi Arabia risking a push away from the petrodollar. Throw that in the mix and where does it leave the value of the USD when it’s being printed to the cows come home.
     
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  6. silverhair

    silverhair Active Member

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  7. GreatSouthernTime

    GreatSouthernTime Active Member

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  8. jultorsk

    jultorsk Well-Known Member Silver Stacker

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    That is indeed the question. There was a reasonable Credit Suisse working paper some two weeks ago: "Covid-19 and Global Dollar Funding". They are speculating on currency crisis and USD shortage. One theory is there's globally not enough $ to pay the dollar denominated debts due (approx $13tn, who knows). This would cause a 'short squeeze' ($US up). After that, the hyperinflation of epic proportions.
    ETMJ10jUYAAfPnI.png

    Also interesting: https://www.lynalden.com/global-dollar-short-squeeze/
     

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