Value of US dollar plunges after Obama signs new debt limit increase





Well, who didn’t see this coming? The day after President Obama signed an increase in the US’s debt ceiling into law, the value of the dollar has taken a dive.

from Wall Street Journal:

Expectations that the Federal Reserve will have to keep its easy-money policies in place for longer following the partial U.S. government shutdown pushed the dollar close to its lowest point of the year against the euro and U.S. Treasury debt prices to their highest point since July.
Yields on the 10-year Treasury note, which move inversely to prices, touched 2.538%, the lowest level since July 24, according to CQG. The dollar continued its slide against major rivals, including the euro, the yen and the pound. The euro recently bought $1.3686 from $1.3676 late Thursday, while the pound fetched $1.6186 from $1.6165. The greenback traded at ¥97.71 from ¥97.93.
The drop in the dollar and the rise in Treasury debt prices were set in train earlier this week after lawmakers reached a temporary solution to raise the so-called debt ceiling, showing that investors doubt the Fed can start to reel in its stimulus measures—a process dubbed tapering—for as long as economic performance and data is compromised by the now-ended shutdown, and as long as the risk of repeat shutdowns lingers.
read the rest
The Obama administration’s continued devaluation of the dollar (along with establishment Republicans who allow him to do it) places our nation’s economic security at long-term risk.
The very idea of servicing our existing debt with new debt is irrational and dangerous.

http://poorrichardsnews.com/post/644...signs-new-debt