Topic: America stimulus support add strength to the dollar as investment increase (Read 271 times)

Dollar is the global currency and USA holds the power to print as many currency notes as they want. Its because of this fact dollar won't fall. In my opinion this strengthening of USD because of currency notes is temporary and won't help dollar to stand out in the long run.

I still think that it is obvious dollar is not as strong as claimed, sure you could show me some charts that show that it is profitable but the reality is that we are not there, the reality of someone who goes to work and comes back home will know the difference, their life is more expensive and their life is harder as well, there are much more people who are unemployed and many more that are making a lot less as well, people who used to be considered middle class is no longer available, there are people who barely survive and there are very rich people, the middle is very few nowadays.

So, just because there are people who work 2 jobs and barely survive, doesn't mean that there is no economical problem, that on paper looks like they are surviving but that's not alright with me. This is why I do not believe the charts that indicate dollar is strong, because life is not looking like economy is strong.

Because a lot of people on the Internet is doing the same thing and a lot of financial influencers are advocating to put their stim package on investments, this is just a herd mentality that we are witnessing and it is a double-edged sword because it can help be used for the good and for the bad, you don't really have to worry about US overprinting their fiat if you don't live in that country, I mean bitcoin is flexible and can be converted to your local fiat.

I noticed that the US dollar increased it's value against my local currency a day ago.
I guess that this is caused by a higher level of optimism across the fiat currency markets about the recovery of the US economy and the end of the pandemic.Perhaps some investors/traders are seeing the US dollar as a short term "safe heaven"(which is ridiculous).
The vaccination process gives a sense of hope,that might be false in the end.
Let's see what will happen,if all the protection,that those vaccines provide lasts no longer than 1 year.
Will the people have to vaccinate again in 2022?

It’s the nature of trading. For “some reasons” behind the “strength” of the Dollar, maybe the other currencies are weaker? Because nothing indicates that the U.S. Dollar is strong based not in movement, but in the United States’ GDP and debt.


It can, BUT HODL Bitcoin as a fall-back/back up in case it can’t anymore.

Just because USD could pair stronger or weaker against other currencies doesn't mean that it is doing better, or it became stronger, it could mean that or it could mean that other currencies got even weaker. So, let's say there is this X item you could buy for 100 dollars and 100 euroes in a world where euro and dollar is 1 to 1 equals.

Because of inflation that product becomes 150 dollars but 200 euroes, just because it went up 100% for euro and only 50% for dollars does that mean that Dollar is stronger? No because it lost 50% anyway so it is weaker, it is stronger than euro but weaker compared to what it was. That's what people are saying right now, they do not care about other currencies, we think (and I agree) that dollar is weaker, it is not stronger, not after what happened in the last 1 year with trillions of dollars printed to make it go down in value.

How could the the Fed place large buy orders for the US dollar under a QE program? Since QE is creating more dollars, what would the Fed buy dollars with, different dollars? This doesn’t make sense.

Have you guys ever thought that when Government gives away stimulus package then most of the people are trying to invest them into stocks to stay future ready and that actually benefits the government itself? I mean what if they already know this is the market ahead, and government opens up positions to benefit themselves?

I know this could be just overwhelming response to the current situation but with amount of money they are printing, it’s huge.

Okay well I'm speculating it based on what I'm seeing with the currency movement. The US dollar pairs for last week and week before did well in the pairs. For against the EU and GBP where it is paired as counter currency, it was seen to be pulling the base currencies down and also for pairs as base currency to CAD,CHF, it was strengthened up. Maybe that could be temporal though. Never take out sentiment in trading.

But for printing cash and its effect on inflation, the US can control that.

This is the same I was thinking, they are playing a dangerous game with the dollar, they are basically taking a very high risk by telling the world they are going to print all the money they want and the world can take it or leave it.

But while the rest of the world has taken it during decades despite the awful fiscal policies of the US governments the date will come in which they will just leave it and that is when the US government will learn the the dollar hegemony over the world is nowhere near as solid as they thought it were.

It’s not “my indicators”. I was merely asking a question if you, or anyone, believes that the U.S. Dollar is truly “strong” after the United States’ falling GDP, trillions in BRRR money printing backed by debt, and the coming problem of inflation. What is backing the “strength” of the Dollar?

Just to point out: I was not talking about famine literally, I was just using the expression, which applied to reality can refer to several areas. However, other countries that have printed en masse, such as Venezuela, have had famine, so I don't think it's totally out of the question, despite the particularities of the USA.

But yes, in general I agree that inflation is most likely to go another way, at least in the US.

If according to you that the strength are not there by your indicators, you understand what sentiment do to the market. Mere speculation is enough to create sentiment to drive price to direction you can't believe and now with the announcement of stimulus will create such a sentiment. However, looking at the dollar, I see some recovery and that is having influence in the crypto market.

It is really not cool for bitcoin to become such a financial asset. I know that we have profited from this a lot, and I know that we should not be sad about what's going on, but the reality is that we are not suppose to be like this, we suppose to be a currency that should be against these kinds of things.

Stimulus was a way for the government to help people, and some people putting that into bitcoin is not bad, they may want to have some, and the ones that spend crypto are fine as well, but the moment this became "let's make money" thing that went way overboard. Hell I am fine with just bitcoin as well, at least that's decent, people end up losing so much money on things that were much much smaller. Chilliz got super high recently, some people saw that and bought at the top, like seriously what is wrong with people, why buy something when it is already that high?

I believe it’s just FOREX speculators trading back to U.S. Dollars, not because of “strength”, it’s because the other currencies are probably weaker. Check the United States’ GDP, and total Debt. Is that truly the sign of strength?

There's huge money circulating around thanks to the stimulus. That's almost a couple trillion USD. So there's now stronger spending. But all this is very temporary. This is hollow money, after all. How much does each US citizen receive from the stimulus? A mere $1,400 more or less? This cannot sustain the high spending. Not to mention the negative effect it brings to the inflation rate in the long run. So this rise in USD does not mean confidence in the currency, or increase in investment, and so on. This simply means people have something to spend, but very temporarily.

If the bankers has a plan at hand as to what they are going to do with this one, I think that they should start now because as the quote above has said, money printing causes hyperinflation which means that if that were to happen, the people of USA are the ones that are going to suffer the consequences.

There will be consequences, but famine won't be one of them.
If it was another country, even a highly developed one, like Japan for example that could have been one of the scenarios but not the US. You guys are the biggest exporters of food, you are one of the only countries that are self-sufficient in all of the basic foods, from cereals to meat and milk, inflation won't be able to trigger a huge jump in imported food because it is simply too little imported and most are not of crucial importance with maybe the exception of coffee.

So famine, out of the question, but serious inflation driving other goods prices up and making a lot of things less affordable, shutting down production of those, sending people to the unemployment office and so on, that could be one of it, it's just a question on how will they manage to contain this continuous money rain.

Oh, and I'm not against stimulus money, there are people who lost their jobs and income forcefully not because of the free market economy and those must be helped but at the same time, you have to find a way that won't affect all the population long term even worse.  I just hope they do have a plan for the coming months and years as I remember clearly that once the US starts coughing Europe gets a cold too.


It's not like that, those huge checks mean only one thing, this government needs bigger bribes to keep people's mouths shut than others around the world. Plus they have a lot of promises that will most like be forgotten pretty soon, so why not start by handing out money before people grab the pitchforks?

Charts is kinda small to me and most of them are xxx/usd

I kindly like to check DXY (Dollar index) because it is not affected much if an xxx currency goes down


source: tradingview.com

According to my point of view, this could be a big long run in the next couple of years since the index has already reached its previous bottom. Well, looking forward to seeing big boy return to his playground

So true, and I'm just wondering when the famine is going to start--and I also suspect that it's going to be prolonged and severe when it arrives, so I'm not looking forward to it.  All of this stimulus and money creation that's going on all around the world can't go on forever without having serious consequences (unless I'm missing something that our esteemed economists in power know).

I don't understand currency trading at all, but it does seem strange that the USD would be increasing in value relative to any other currency aside from the extremely weaker ones.  Economics seems like so much voodoo crap these days, and I'm just hoping that our policy makers are keeping an eye on all of this and have plans for the future that don't include forcing the population to live in bunkers for the rest of their lives.