Lower interest rates and more QE would only hasten the coming disaster.

ZeroHedge –
"Trump Urges Fed To Cut Rates, Launch QE To Counter "Strong" Dollar "

- Flash Points –

1 – President Trump believes the US dollar is “strong.”
2 – He urged the Fed to lower interests rates, in order to boost exports.
3 – Doh! The dollar aint strong. Nor is the economy. 

– Synopsis –

In a recent tweet, President Donald Trump proclaimed that the US dollar “is very strong.”

He therefore called on the Federal Reserve to lower interest rates. He also urged the Fed to start another round of quantitative easing (QE, aka money-printing), in the belief that such steps would increase the amount of exports and stimulate the economy. 

Playing into Weakness 

But that’s nonsense. The problem is 2-fold. First, the dollar is “not”  strong, and in fact, is at a 5-month low.

Second, over the past 3 months, the Fed has already been printing billions and billions of dollars. Even more than it did during the Great Financial Crisis of 2008.

– Insight from Outside –

While the US dollar may appear strong to some, it has clearly been weakening. Furthermore, it is unlikely to rise anytime soon, if ever.  

Disastrous Policy 

Even if the dollar were strong, that would only be owing to its standing as the lesser of many weak fiat currencies. Were the Fed to heed Trump’s call to lower rates, the result would be a hastening of the coming disaster.  

Ease, Please, or Squeeze 

Since the Great Financial Crisis, the Fed has engaged in 4 rounds of money printing – QE1, QE2, QE3, and the current round, which it refuses to call QE.

Whatever. Call it “quantitative pleasing”  or call it “quantitative squeezing,”  call it “QE”  or call it “BS”  … it’s all the same thing. Money-printing.

Creating illusory money out of thin air is not something that is done in a healthy economy. Quite the opposite, it shows that the economy is very sick – that in fact, the economy is on life support, and is surely dying.