The voodoo they call "economics" (Page 1/1)
BingB APR 21, 02:41 PM
Economists have been debating "theory" for many, many years. All I know is that no one ever has been able to come up with a policy that will keep our economy stable. There are just too many variables beyond our control. But it seems like there would be some very basic principles that everyone agrees on. But I can't even get a grasp on these. Two news items from this last week proved to me how little I understand.

First I read about how the Federal Reserve Banking System was losing money for the first time ever in its 110 year existence. That seemed like a huge red flag to me. The Fed explained that there was nothing to worry about because the negative balance was not really a "loss" but instead just a "deferred asset". Does that mumbo jumbo make any of you feel any better?

But then I read that the US dollar is getting stronger against other currency. That means that the experts in the world markets believe that the United States economy is doing better than other major economies.

So while I generally see "debt" as a bad thing it seems that the Feds "debt management" policy is good for the US economy.

Any economic experts around here?
williegoat APR 21, 03:09 PM

quote
Originally posted by BingB:

Any economic experts around here?


Ask fred, he knows everything.
BingB APR 21, 05:01 PM

quote
Originally posted by williegoat:

Ask fred, he knows everything.



The data does not help me if I don't kno0w how to analyse it

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[url=https://youtu.be/TaQWUgGG7V4?si=ltCLsmuBRPm1KJl5]

[This message has been edited by BingB (edited 04-21-2024).]

BingB APR 21, 09:44 PM
Just read that one possible reason the dollar is getting stronger is the current unrest in the world. With wars effecting huge oil producers Russia and multiple middle eastern countries the oil market is very volatile. There could be a major price spike at any time if a major supplier is either cut off or cuts off exports. Since the United States is so much more energy independent than other major markets in Europe and Japan the US economy will take less of a hit.

So this makes the US economy a safer bet right now and that helps us by driving up the value of the dollar. The price of imported good will drop.