USD

Is chloethebull a man?

Part of the difficulty in understanding the US economic system is the false instruction provided in academia reinforced through the brainless media and equally brainless (or increasingly untruthful) US politicians. Neo classical economists, monetarists, Austrians, all have their shortcomings, the largest of which is an implied insistence of their theories as if they were religion rather than a science. I acknowledge the contributions of each group but have started to notice a segment that seems to "get it" more than the aforementioned: the Post-Keynesians. Note that Post-Keynesians are not Neo Classicals, as the latter will claim Keynes' teachings but leaves one suspecting if they've ever read The General Theory or any of Keynes' subsequent notes in the first place.

Much as Sting Theory was rejected decades ago as nonsense (to the point now it has evolved to M Theory), we are realizing the shortcomings of Neo Classicals, Monetarists, Austrians as their theories in their inception seem to all have failed to understand how a fiat money system differs from a commodity based one.

catnip: I realize QE is not printing money. It is a redefinition of the term structure of the maturity of government treasuries. The first wave of QE (started in late November 2008) is sitting with the Fed as excess reserves. All that really happens via QE is that the Fed debits and credits the Treasury accounts and Excess Reserve accounts by the amount of purchases.

i think it is important to clarify what bernanke conjointly with some worwide central banker wanted with this quantitative two
stabilizing what made two third of the national gross product of the great britain united states and eurtopes reunitred. nothing more nothing less
not inflation exportation in china neither in latn american or south east asia.
the primary goal of menbers of FOMC is continue stabilizing the component of GNP as well as members of MPC and ecb.

The Fed's interest rate policy, the US's relative growth prospects, and exported capital are the reasons why USD has weakened, not QE, though the front-running of QE impacted USD weakness. As we have recently seen the USD strengthen on position unwinds due to risk aversion and year-end profit taking, this has occurred despite the Fed's OMO. QE can only affect the price, not the quantity of money, and it appears that the price impact (lower interest rates) has already seen its near-term low.