Professor Elam

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Economics 301

Here is a good explanation of how currencies find their value. I have made the point that

the FED needs to defend the dollar which would bring confidence in buying assets such as foreign buyers purchasing homes here

dumping the dollar to create more dollars is false economy

we will learn how much more the FED lowers rates today but that well is running dry anyway, unless the Govt plans on paying us to take their ever more worthless fiat money

Robert Samuleson points out that most investment banks operate on a 32 to 1 leverage basis.  Wow, the official rule when I studied for my Principal’s License with the NASD was 10 to 1.  Clearly it does not take much lack of faith to see such a house of cards fail.

Steve Forbes on the weak dollar, the flat tax in Slovakia, and how and why Clinton got it right!  I have not heard a word from Dems on the dollar, has anyone?

Even the Vietnamese dong is going up against the US Dollar!

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4 responses to “Economics 301”

  1. Dr. Greg Tomlin Avatar
    Dr. Greg Tomlin

    The gain of the Vietnam dong against the dollar is particularly hurtful to me. When I travel there (five times since 2000), I’ve always enjoyed being a millionaire. I remember the first time I went … the exchange rate was $1 to 16,200 VND. Life was pretty good as I traveled throughout the country for two weeks on $400.
    Wouldn’t the value of the dollar increase if the Federal Reserve just stopped printing it? Basic law of supply and demand? As it stands now, there is little value in the dollar, and then the FED infuses billions in cash into the market. How in the sam hill is that supposed to help?
    I’m not a conspiracy nut, but regional currencies appear to be the way things are headed. South America is exploring this, Europe has already done it, and Asia won’t be far behind.

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  2. Dr. Greg Tomlin Avatar
    Dr. Greg Tomlin

    The gain of the Vietnam dong against the dollar is particularly hurtful to me. When I travel there (five times since 2000), I’ve always enjoyed being a millionaire. I remember the first time I went … the exchange rate was $1 to 16,200 VND. Life was pretty good as I traveled throughout the country for two weeks on $400.
    Wouldn’t the value of the dollar increase if the Federal Reserve just stopped printing it? Basic law of supply and demand? As it stands now, there is little value in the dollar, and then the FED infuses billions in cash into the market. How in the sam hill is that supposed to help?
    I’m not a conspiracy nut, but regional currencies appear to be the way things are headed. South America is exploring this, Europe has already done it, and Asia won’t be far behind.

    Like

    Reply
  3. Dr. Greg Tomlin Avatar
    Dr. Greg Tomlin

    The gain of the Vietnam dong against the dollar is particularly hurtful to me. When I travel there (five times since 2000), I’ve always enjoyed being a millionaire. I remember the first time I went … the exchange rate was $1 to 16,200 VND. Life was pretty good as I traveled throughout the country for two weeks on $400.
    Wouldn’t the value of the dollar increase if the Federal Reserve just stopped printing it? Basic law of supply and demand? As it stands now, there is little value in the dollar, and then the FED infuses billions in cash into the market. How in the sam hill is that supposed to help?
    I’m not a conspiracy nut, but regional currencies appear to be the way things are headed. South America is exploring this, Europe has already done it, and Asia won’t be far behind.

    Like

    Reply
  4. Dennis Elam Avatar
    Dennis Elam

    Dr. Tomlin is our marketing director here at UNT Dallas Campus. He is of course correct, money is being printed to rescue the guys driving Maseratis at Bear Stearns. We pay for that. Bringing the dollar to constant value would help halt the decline in home prices. Aparently Alan Greenspan judging by his remarks in the WSJ, does not connect the two. The price of gold and silver are down temporarily, the dollar is headed down, and even the dong is headed up.

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