Zeev's Turnips Patch-No Politics (ZEEV)

[Emptyhead]

Zeev

The idea that the FED will let the dollar float against foreign currencies without intervention,assuming that is what they are doing,I wonder if the Fed is more concerned with financing their budget woes;fiscal stimulus packages,increased military spending ect...,through a more competitive treasury auction. Is it safe to assume the dollar weakening will allow for a more advantageous foreign investment in our treasury securities? And given that,is there not a fine line between the fiscal stimulus created via lower rates in our economy against the advantages created by a drop in the dollar for foreign investment in our treasuries? If I seem confused,it is because I am.
I am under the impression that many feel they are equity rich with their real estate investments. Capital flows have been puring into real estate for some time now and I do not see an end. Lower rates have been a boom and the idea of a further possible rate cut will only allow real estate equity to remain lofty. The FED tells us inflation is almost non existant? Too be on our wares for deflation? Could the current FED policy be responsible for a deflationary threat?

sorry I am rambling here...although,your thoughts would be appreciated