Comments on: Time Is Money* http://www.bob-mcteer-blog.com/time-is-money/ Bob McTeer's Blog Sat, 17 May 2008 03:09:09 +0000 http://wordpress.org/?v=2.3.3 By: Wayne Jett http://www.bob-mcteer-blog.com/time-is-money/#comment-1584 Wayne Jett Sun, 30 Sep 2007 23:29:39 +0000 http://www.bob-mcteer-blog.com/time-is-money/#comment-1584 Bob, I write to raise a point of issue regarding whether current dollar weakness originates from the Fed having reduced the funds rate too low in 2003 and kept it low too long. In my opinion, the answer is no. The dollar was more than twice as valuable in 2003 (relative to gold) as it is now, and the yields on long bonds were lower then than now. The much weaker dollar has resulted from the combination of higher funds rate (slowing economic growth and reducing demand for dollars) and higher liquidity injections by the FOMC. The much weaker dollar has contributed to a much higher current account deficit, as Americans have paid more for foreign products. WJ Bob,

I write to raise a point of issue regarding whether current dollar weakness originates from the Fed having reduced the funds rate too low in 2003 and kept it low too long. In my opinion, the answer is no. The dollar was more than twice as valuable in 2003 (relative to gold) as it is now, and the yields on long bonds were lower then than now. The much weaker dollar has resulted from the combination of higher funds rate (slowing economic growth and reducing demand for dollars) and higher liquidity injections by the FOMC. The much weaker dollar has contributed to a much higher current account deficit, as Americans have paid more for foreign products.

WJ

]]> By: Rufus http://www.bob-mcteer-blog.com/time-is-money/#comment-1582 Rufus Sun, 30 Sep 2007 20:16:04 +0000 http://www.bob-mcteer-blog.com/time-is-money/#comment-1582 Dr. McTeer, I've been Mean, in fact, downright brutishly nasty, toward the Fed in some of my comments on another blog which I'm sure you read. Sorry. It had nothing to do with You, who I Greatly admire. I just discovered your blog, and am having a Wonderful time going back through your past posts. Please don't quit. If you choose not to post my comments in view of my past statements regarding the Fed I don't blame you. I Will continue to read your articles, anyway. Sincerely, in admiration Rufus Dr. McTeer, I’ve been Mean, in fact, downright brutishly nasty, toward the Fed in some of my comments on another blog which I’m sure you read.

Sorry.

It had nothing to do with You, who I Greatly admire. I just discovered your blog, and am having a Wonderful time going back through your past posts. Please don’t quit.

If you choose not to post my comments in view of my past statements regarding the Fed I don’t blame you. I Will continue to read your articles, anyway.

Sincerely, in admiration

Rufus

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