# Is the US dollar failing ?



## Howard_Z (7 mo ago)

The Global Treasury Market Is Under Pressure As Fed Raises Rates | OilPrice.com


As the Fed continues to execute its policy of quantatitve tightening and raising interest rates, the global treasuries market is under pressure




oilprice.com





I had to read this a few times to understand it. Difficult to understand what causes what.

Since 1/3 of the US money supply was created in the past 2 or 3 years....

Is the world is refusing to buy treasuries maybe because of this despite higher interest rates ? ....

Maybe this is the destruction of the US dollar ?
And what solution comes next ?


I am not sure I understand the article, and what will come next.


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## Howard_Z (7 mo ago)

It is a long known fact, that when interest rates rise, the value of existing older bonds goes down - because they are paying interest lower than the current rate.

With the Fed raising interest rates 3/4 % every 1 or 2 months...
Buys of bonds think "if I buy a bond, it will go down in value next month. If I sell the bond, I will lose money"

Few hold bonds to maturity.
Existing 10 year treasury bonds and bought and sold every day.

So, what happens if nobody buys or renews their US treasury bonds ?
Does this mean the US treasury prints up 17 trillion more dollars ?
Does this destroy the US dollar ?
Like the German Mark after WW1 ?

I don't know


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## Lunkan (Aug 28, 2020)

An other article posted by earlier (by you?) explained why USD have gone up when the logical would be down when printing a lot of money. 
Combined with high loans, which in big part cant be paid back, its a ticking bomb partly similar to what started the crisis 2007-2008...


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## Howard_Z (7 mo ago)

Well, I should not have posted this because it is not about Philippines.

I did not understand ihe article at first.
If the USA stops raising interest rates so quickly, then this serious problem goes away.

A ruined US dollar will really ruin retired life. I hope USA leaders will not cause this. High inflation is bad enough.

When the USA messes up its economy, the entire world feels it.


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## Lunkan (Aug 28, 2020)

Howard_Z said:


> If the USA stops raising interest rates so quickly, then this serious problem goes away.


 The problem is much biger than that. 
Not only in USA but among the "rich" countries USA have some biger problems, shown in USA got lowered credit classification. 
It become a big problem for the WORLD when western countries screw up as it happened e g 2007. It have happened and will happen again.


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## Quezon Expat (3 mo ago)

In my experience exchange rates go down approaching Christmas time due to the influx of OFW dollars. Couple that with the US Fed increasing interest rates to combat inflation makes it even harder to predict exchange rates. We have been peso cost averaging by exchanging more USD/PHP for the last few months.


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## babyfefe01 (2 mo ago)

Howard_Z said:


> The Global Treasury Market Is Under Pressure As Fed Raises Rates | OilPrice.com
> 
> 
> As the Fed continues to execute its policy of quantatitve tightening and raising interest rates, the global treasuries market is under pressure
> ...


It's a bit early to say anything, we need to wait a bit to get a clear picture.


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## grahamw57 (May 27, 2018)

Dollar has apparently strengthened again, and US bank interest rate about to go up, would normally strengthen still further.


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