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IPFS News Link • Economy - Economics USA

When the Dollar Rallies

• arclein
When the financial system blows up and credit is sucked down a capital-hole, the economy goes into a downward spiral. Businesses slash inventory and lay off workers, workers have to cut back on spending and credit. That creates less demand for products, which leads to more lay offs. This is the vicious circle policymakers try to avoid. That's why Fed chair Ben Bernanke wheeled out the heavy artillery and launched the most aggressive central bank intervention in history.

1 Comments in Response to

Comment by Found Zero
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I just knew this would come down to Mike Whitney somehow.

What suggests that the dollar will rally or that same would constitute anything remotely associated with the "real economy"?

I'll tell you what suggests this: the mind of the socialists such as Whitney who cling to the theory that Bernanke et al saved us from disaster to save one of their most precious objectives: to place their reformists in the Fed. To control it themselves. See Whitney, if you've read him closely for several years as I have, is a great admirer of the Fed and a carefully regulated and controlled economy.

Now looking at sudden dollar strength, we see it's only propped up by relief from investors as certain foreign reserve banks renew their weak pledges not to drop us like stones into the bottom of the deep blue sea. At least not overnight.

Is this the great dollar rally Whitney is calling or is some other, greater magic yet to come?