How to save King Dollar, and its impact on oil and food prices, with Steve Forbes, Forbes Media, and David Gilmore, Foreign Exchange Analytics.

Airtime: Tues. Mar. 22 2011 | 7:15 PM ET

Category: Video

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Dollar Threat to Prosperity ?”

  1. JasRas says:

    Couple interesting things out of this exchange:

    First Forbes talking about this recovery lacking the strength of even the initial bounce in the Great Depression, which while true from an economic standpoint, is not true from a market standpoint. He also states that initial recovery “hit a while” due to Roosevelt’s policies. I think he’s suggesting the social workfare as the policy that caused the “wall”. However, it’s been pretty well written about that it was Roosevelt’s policy of maintaining control over the Federal budget and “reigning it in” that most likely took the oxygen away from any recovery embers. Yet, we are marching down this very path…

    There are soooo many things that make this discussion irrelevant–It is frankly silly to think you can pin the whole enchilada on one thing at all….the dollar. We have secular issues in place that have been brewing for a long, long, long time (labor), we have individual debt load issues that led into this time period, we have global macro issues of countries growing up (I mean, emerging…) into more developed economies,…

    The reality is the dollar value is different based on what you are comparing it to. The countries that are “hurt” by whatever we choose our policy to be are those who choose not to choose and peg their currency.

  2. joeygravy says:

    Forbes said name one country that benefited from devaluing the dollar. The most recent example was Reagan in the 80s.

    Here is industrial production in mid 80s.

    Here’s the Fed’s real dollar index under Reagan. He devalued the currency because industrial production was stagnating. Industrial production started to increase after he devalued the dollar.

    FEB 1985 128.0333
    MAR 1985 128.4370
    APR 1985 125.0959
    MAY 1985 125.8475
    JUN 1985 124.9419
    JUL 1985 121.8663
    AUG 1985 121.3650
    SEP 1985 122.3699
    OCT 1985 117.8131
    NOV 1985 116.4606
    DEC 1985 115.7897
    JAN 1986 114.8161
    FEB 1986 111.4143
    MAR 1986 109.3646
    APR 1986 108.3821
    MAY 1986 106.6678
    JUN 1986 107.6583
    JUL 1986 105.7827
    AUG 1986 104.4536
    SEP 1986 104.6759
    OCT 1986 104.7689
    NOV 1986 105.7110
    DEC 1986 105.0487
    JAN 1987 102.1870
    FEB 1987 101.2570
    MAR 1987 100.7107
    APR 1987 98.6663
    MAY 1987 98.0653
    JUN 1987 99.1410
    JUL 1987 100.2709
    AUG 1987 99.8631
    SEP 1987 98.4347
    OCT 1987 98.1098
    NOV 1987 94.8064
    DEC 1987 92.3699
    JAN 1988 92.1350
    FEB 1988 92.5151
    MAR 1988 91.2507
    APR 1988 90.4927
    MAY 1988 90.7033
    JUN 1988 91.8033
    JUL 1988 93.7842
    AUG 1988 94.5859
    SEP 1988 94.7308
    OCT 1988 92.6475
    NOV 1988 90.3760
    DEC 1988 89.84

  3. Data Room says:

    i think there are many irrelevant and unnecessary things discussed in this discussion. I agree JasRas that we have many big issues like debt issues, unemployment issues etc.. Prices or food and oils are increasing worldwide. But overall its good discussion.

  4. wannabe says:

    That was fascinating.

    I do wish Barry would weigh in with where he stands on the various issues.

    Considering the positions Barry tends to take and the statements about idealogy made by David Gilmore “Who’s trashing the currency? That’s absurd…assertions live in the land of the lazy… I don’t know what the basis is, is it politics? Is it an idealogy?” I’m guessing he’s more in agreement with Gilmore.

    But then again, Gilmore was dismissing the effect of QE out of hand which is something I don’t think Barry does considering how often he bashes ole helicopter Ben.

    I myself don’t know enough about the subject or the participants to have an opinion of any value.