tag:blogger.com,1999:blog-3210378500200629631.post8044132588188580577..comments2023-11-06T00:09:38.672-08:00Comments on Mase: Economics and Finance: The Falling Dollar is Front Page News!Mase: Economics and Financehttp://www.blogger.com/profile/16730994070959040962noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3210378500200629631.post-84804696015063050822009-10-11T16:51:00.169-07:002009-10-11T16:51:00.169-07:00By the end of World War I the U.S. was a creditor ...By the end of World War I the U.S. was a creditor nation, but we refused to act like one. We opted for tariffs and other restrictions on imports, rather than free trade. Capped by the sky-high Hawley-Smoot tariff of 1931, U.S. trade policy was an important contributor to the world wide depression of the 1930’s. By 1933 there was not a single major nation on the gold standard except the U.S.<br /><br />The situation was further exacerbated when Roosevelt and his Treasury Secretary, Morgenthau, exercising the crisis powers delegated to the executive branch by Congress, took the U.S. off the gold standard in April, 1933 by making the dollar inconvertible into gold at a fixed price. <br /><br />And to make matters worse they periodically kept raising the price of gold from $20.67 per ounce to a final price in Dec. 1933of $35. <br /><br />This had the effect of DEPRECIATING THE EXCHANGE VALUE OF THE DOLLAR. All of this was done by a creditor nation operating with a chronic surplus in its balance of payments (John Maynard Keynes Nixon BULL).Salmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.comtag:blogger.com,1999:blog-3210378500200629631.post-12056176937794811342009-10-11T16:45:01.974-07:002009-10-11T16:45:01.974-07:00"The underlying problem is the fiscal irrespo..."The underlying problem is the fiscal irresponsibility of the United States government"<br /><br />ENTIRILY FALSE the decline in the exchange value of the dollar is due to our trade imbalance. I see no evidence presented in your article that indicates the federal deficit is the primary cause of the dollar's fall.<br /><br />"time that Paul Volcker was the Chairman of the Board of Governors of the Federal Reserve System, a time of monetary tightening that actually brought the value of the dollar substantially above its March 1973 level"<br /><br />"tight" bet me a million dollars or two<br /><br />the trade deficits are inexorably forcing the dollar down in terms of its foreign exchange value—and no consortium of central bankers, treasury secretaries, et al. can stop the processSalmo Truttahttps://www.blogger.com/profile/13910212017849902362noreply@blogger.com