Can we say bubble pop?

[Elwar]

It looks like the dollar is a bubble that is about to burst.

Enjoy the crash suckers.

[vokain]

why, if interest rates are still super low. if they have to go up eventually, shouldn't that mean that the dollar will go up when interest rates go up?

[Elwar]

why, if interest rates are still super low. if they have to go up eventually, shouldn't that mean that the dollar will go up when interest rates go up?

The Federal Reserve is currently borrowing over 80% of the Treasury Bonds which are used to fund the printing of money for the Federal Reserve and rising.

Meaning less than 20% of our money creation is being supported.

When that hits 0% there is no place to go from there, it will mean that the world has lost all faith in the dollar.

All of the hype about the dollar as of late is a fit of desperation, expect more from the government media as they try to save what is left of the failed currency.

[chriswilmer]

why, if interest rates are still super low. if they have to go up eventually, shouldn't that mean that the dollar will go up when interest rates go up?

The Federal Reserve is currently borrowing over 80% of the Treasury Bonds which are used to fund the printing of money for the Federal Reserve and rising.

Meaning less than 20% of our money creation is being supported.

When that hits 0% there is no place to go from there, it will mean that the world has lost all faith in the dollar.

All of the hype about the dollar as of late is a fit of desperation, expect more from the government media as they try to save what is left of the failed currency.

+1

[SkRRJyTC]

Not only can we say it...


http://www.youtube.com/watch?v=bw9CALKOvAI

[BitSmile]

Not only can we say it...


http://www.youtube.com/watch?v=bw9CALKOvAI

What a fine asian lady...she's eager for a phallus.

[Nemo1024]

What US Treasury is doing in reality, is printing counterfeit dollars. Just like fake money printed by criminals, these dollars are not backed up by goods or demand and are harming the real economy.

[herzmeister]

It looks like the dollar is a bubble that is about to burst.

Enjoy the crash suckers.

[cbeast]

[bitleif]

USD is in de-facto deflation right now. It may collapse at some point, but don't expect it to happen in the immediate future.

[vokain]

USD is in de-facto deflation right now. It may collapse at some point, but don't expect it to happen in the immediate future.

Is that correct? If a currency is deflating, then there are going to be less in circulation => higher relative value

[glendall]

DElfation? Hrmm am I missing somethng.  You meant inflation right?

[Coinseeker]

King dollar isn't going anywhere.  Bitcoin will be a stain on a wikipedia page before the dollar dies. 

[vokain]

DElfation? Hrmm am I missing somethng.  You meant inflation right?

The concepts are easily confused. The dollar is definitely inflating, as in the supply of dollars is increasing, but the demand of dollars relative to it is increasing even more. Something about higher inflation rates in other countries creating demand for a relatively less inflating currency, pyramid of fiat, etc

Bitcoins man, bitcoins.

[CurbsideProphet]

An increase in money supply does not result in an increase in inflation.  It takes an increase in money supply and an increase in velocity in order to cause inflation.  If you're only talking about half the equation, you're going to get the wrong answer every single time.

[HappyBitCoinUser]

Yes, BTC is POP! Double Digits woohoo! Can't wait to buy me some penny BTC's

[naphto]

It looks like the dollar is a bubble that is about to burst.

Enjoy the crash suckers.

You can say whatever you want, but who cares?

[Qoheleth]

The Federal Reserve is currently borrowing over 80% of the Treasury Bonds which are used to fund the printing of money for the Federal Reserve and rising.

Meaning less than 20% of our money creation is being supported.

You do realize that treasury bonds usually have nothing to do with money creation, right? The usual way that MZM grows is via the discount window and/or the exponential expansion characteristics of fractional reserve banking, not anything to do with federal borrowing.

I mean, sure, if the Fed's M0 expansion is resulting in them holding 80% of newly issued federal debt, that's pretty disturbing. But... it's not like the Fed outbidding everyone in that particular market means that "the dollar is dead". It just means that people have better things to do with their money than sink it into sub-inflation 30-year loans.

What US Treasury is doing in reality, is printing counterfeit dollars. Just like fake money printed by criminals, these dollars are not backed up by goods or demand and are harming the real economy.

By that standard, all dollars since Nixon have been counterfeit. I'm not saying that's wrong, but it's a bit strange to blame the Treasury for the "unbacked" nature of post-Bretton Woods FRNs.