Explainer: U.S. dollar intervention: What would it take?

[turbinetree]

Business News
August 28, 2019 / 11:31 AM / Updated 9 minutes ago

Saqib Iqbal Ahmed 7 Min Read

NEW YORK (Reuters) - The strength of the U.S. dollar has long been a thorn in President Donald Trump’s side. That has put the almost unthinkable scenario of currency intervention up for debate in global foreign exchange circles.

Forcibly halting the U.S. dollar’s strength would be a drastic step, not deployed in more than three decades.

The last big concerted effort to weaken the dollar was after the Plaza Accord in 1985 when five of the largest industrialized countries agreed to act to bring down the value of the dollar.

Most recent FX interventions by policymakers in developed economies have been to address currencies getting out of whack from historical exchange rates or to counter disorderly markets.

Analysts agree that while the possibility of a unilateral intervention in currency market by the United States is low it is not completely unthinkable.

https://www.reuters.com/article/us-forex-dollar-intervention-explainer/explainer-u-s-dollar-intervention-what-would-it-take-idUSKCN1VI1XJ?il=0

The country has "guy" that more than likely did not attend any classes at Wharton.......................and if he gets his tiny fingers in this intervention, while he wants to make buck off his properties...............that are going bankrupt ................................

[Wellstone ruled]

1. You and I see the

evidence of a Ponzi. And yes,his Crime Syndicate is headed towards the Bankruptcy Courts with the Oligarchs of Russia and the Royal Family of Saudi Arabia being the Receivers of all those over Leveraged POS.

[turbinetree]

2. Yepper spot on.............................the Ponzi....................right there in plain site

for everyone to see what he is doing...........................

[empedocles]

3. Problem seems to be much deeper than the 'intervention' level. Some context;

the underlying reason that the US can have such stupendous deficits and still have low interest rates, - is that there is such a huge demand for safe dollars [T-bills]. Safe, like an assurance [US needs weekly t bill auctions to pay the troops, etc.] they will get their money back when they want it - unlike their own banks or country, or burying money somewhere, etc.

The rich have been willing to buy T-bills at nearly zero return. They would still buy t bills at negative rates [where they pay 1 million, and a year later only get $950,000 back].

So trumpsters maywant cheaper dollar for their benefit, but dollars/t bills in the marketplaces keep bidding upwards for the dollar. That upwards pressure has increased some with just distant, 'speculative' warnings. With a real economic downturn, any 'interventions' would not be very effective - the dollar may even blast upwards.

[Wellstone ruled]

4. Basic Economic Theory

you have stated is right on. On Bloomberg overnight,they are doing segments on the Currency Trading and Foreign Wealth flight to the Dollar and like you say,this could produce a even stronger dollar.

German Bund's were trading at -53 basis points at midnight pacific time last night. Friggin Scary.

Key is watching the Sovereign Wealth Funds and where they park their Money. Last night the Rotation to T-Bills from Bonds was a interesting topic,and the so called experts are saying that Eourpe is in a full blown Recession and Asian as well as India are teetering. Love the way they are trying to stay on the good side of Trump with their bothsiderisms. Reality is,we are in deep shit and all the Hype about the Consumer is just more B.S..

This whole Labor Day Ad thing Nation Wide seems to be a Feel Good Effort by the Chamber of Commerce,Business Round Table to save Trumps crumbling Economy.

[empedocles]

5. Thank you for your updates. Good work.

[Wellstone ruled]

6. What is scary is,

our Kids and Grand Kids are the ones who will pay the price.

When one has a Leveraged Money Education,and ones Employment is being a source of 50% of your Housing needs,just what could go wrong.

Seeing this scenario playing out in real time like many others.

[empedocles]

7. I thought of your comment when I saw this morning a cartoon posted

by Sherman A1 about 4:30a [ multiple jobs to pay rent, sorry links are difficult on my device]

I have a similar situation w my 2 adult, married children paying high rents, and have seen their friends similiarly situated. Situation here in DC area compounded by Amazon plans to move in big right on the Potomac River. Speculators driving prices up well ahead of the actual move. My kids don't quite grasp that prices can go down easily, as they did 11, 18, and 30 years ago. Each time some people suffered a lot. In a 'big one down' many will suffer for a long time.

[Wellstone ruled]

8. Like you say,and we have been there and done that

and didn't have the Coinage to buy the friggin T-shirt. Adult Kids paying these stupid high Rents,yah,got two of them also. One a Super Lib and the other Super Trumper. Both are in market areas where Amazon seems to be the driving force. When Rents get too 2 bucks a foot,things are ready to go south,and both are at that point. One can Rent Commercial Property at 1.25 a foot or less in both of their areas.

Again,like yourself,we saw this coming with the Republican pro 1% policies. Understand the DC thing,number one Son was offered a Political Aide position 2012 and just said no when he checked out the cost of Rent for he and his Daughter and Partner . The numbers just would not work unless we subsided their expenses.