Maximus wrote:Paphitis wrote:Maximus wrote:Paphitis wrote:Well the USD still seems strong, and I’m been waiting for it to slide away.
If the FED raises interest rates, and other major central banks are reluctant to do so,
The interest rate differential between the USD and foreign currency will widen.
Yielding more interest for assets or cash denominated in USD.
when investors buy USD, that increase in demand increases the price of it relative to foreign currency.
The US Fed will raise interest rates late next year to control inflation. This will make the USD stronger.
Doubtful they will be alone though. Australian Federal Reserve will also raise interest rates at the same time. So there would be a wider domino effect with the Eurozone, Canada, Japan, and other larger economies.
Christine is saying that she is very unlikely to raise interest rates in 2022.
What’s very funny though is how some people here are comparing Turkey to America. Saying that America is doing the same as Erdogan.
Fir starters, Turkey is in deep shit. They are on the verge of bankruptcy.
The US on the other hand is an extremely robust and advanced economy with massive commercialism, the biggest corporations on the planet. And we are not talking about corporations that sell Turkish Delights. We are talking snout Coca Cola, Apple, Microsoft, Tesla, Amazon, Google, Facebook, Amazon, Boeing, various Defence companies, various car makers etc etc. We can go on forever.
It’s quite the delusion comparing Turkey to America. One has a pretty advance civilisation, and the other is almost an Islamist State.
Yes there are dumb people in the states and the corporations control the Government but that is everywhere, including Australia. Our corporates are very much in control. We literally have one guy controlling we over half our media. In a democracy, that one guy can sway elections. People live under an illusion of democracy. People all over the world need to understand that their governments don’t give a stuff about them. Doesn’t matter what party wins. If you work for a corporate, you are a SLAVE. Plus they probably do want the those Slaves to be uneducated. To lower labour costs otherwise who is Bezos going to have working in his mega facilities?
It’s actually worse in Greece and Cyprus because the local populations there are quite politically active working for their Masters thinking they will get something in return. Now that’s pretty dam dumb if you ask me.