Blog: Are Low Interest Rates Hurting the US Dollar?

Finally, someone is asking the right questions . . . just hope it's not too late.

Ben Bernanke and the Federal Reserve have kept interest rates low for some time. Interest rates lie somewhere below a quarter point and a zero, giving people very little reason to save. Why should you save money when inflation could work against you and the money will not grow?

Low interest rates also work to reduce the cost of borrowing. This could help businesses that want to expand, or the federal government that has trillions of dollars of debt that it needs to finance.

SOURCE: Are low interest rates hurting the U.S. dollar? - BloggingStocks

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US Unemployment Hits 10.2% and Dollar Rises?

Does this make sense to anyone? Please explain it to me in the comments section below, please. What, unemployed people will use up US dollars by setting them on fire to keep warm?

The dollar rose against most major currencies on Friday as safety-haven demand for the U.S. currency was boosted by high employment rate. The unemployment rate rose from 9.8 to 10.2 percent in October, the U.S. Bureau of Labor Statistics reported. It was the first time the unemployment surpassing 10 percent in 26 years. Most analysts have forecasted a slighter increase to 9.9 percent.

Nonfarm payroll employment continued to decline by 190,000 in October, the smallest decline since August 2008. The largest job losses over the month were in construction, manufacturing, and retail trade.

There were positive signs in the first significant increase in temporary employment in this cycle, and an increase in manufacturing overtime. Combined August and September job losses were 91,000 less than previously estimated.

SOURCE: Dollar rises as U.S. unemployment jumps above 10%_English_Xinhua

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Time Magazine: Is the Dollar Dying a Slow Death?

Well, look who just showed up? Time Magazine, late as usual, is now asking the right question. But it is still coming up with the wrong conclusion: that the US Dollar, somehow, will rebound.

Sure.

The U.S. dollar seems to have as many lives as a cat. Even before 2008's financial crisis, as the dollar slumped against other major currencies, countless pundits and economists predicted its demise as the global economy's No. 1 currency. The doomsayers seemed vindicated when the U.S. economy descended into the worst recession since the 1930s, with its financial sector in tatters. How could an already weakened greenback maintain its value as American economic prowess withered? But then — surprise! — investors around the world decided the good old greenback was a safe haven in a time of great uncertainty. The dollar was resurrected, reversing years of slow decline.

SOURCE: The Dollar's Value Against Foreign Currencies Declines - TIME

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