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Started by wglassfo - May 12, 2020, 10:02 a.m.

I have posted about this previously but let's make it simple to understand

How many people sitting at home, collecting 2000.00/week are going to be willing to give up this money and go back to work for less. Will they not demand a continuation of this gov't program and the politicos see that a continuation of benefits equals votes, vs yanking the support system away, and losing those votes

So we print money to buy goods produced by foreign workers, because we won't go back to work and do the work ourselves, but do have 2000.00/person to buy foreign goods. If we re-open and tell people they can go back to work, the increased cost of safety measures, makes the business uncompetitive or will even lose money, due to a lack of customers. So: Even if you are willing to work, many of the jobs will not come back. How many people do you think the airlines will need

So: We have less people working for a number of reasons, collecting benefits, a federal debt that will explode, a trade deficit that will explode and the printing machine working in over drive, with the market anticipating negative int rates. None of which equates to a healthy economy or a strong USD

How much longer will foreign countries, or sellers of foreign goods, accept our paper money, at todays value???

By cutworm - May 18, 2020, 10:28 a.m.
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Just throwing this out there: MAYBE the US$ is strong because other countries are inflating more than the US? Would that explain that while at this time the $index is strong gold is also strong? 

By wglassfo - May 18, 2020, 10:58 a.m.
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I think you have a valid point cutworm

That would partially explain why some countries wanting a gold standard and why they are buying gold for the past yrs

However, china still needs customers and the USA is still #1 [I think] with no inteentions of a gold standard

So the USD is still the best looking person, of everybody