I saw this, but don’t get it. How would Obama devalue the dollar against gold today?
(via josephweisenthal)
I don’t think he can directly but I’m sure they can figure out a way to drive the dollar down. Think quantitative easing but instead of printing dollars and buying MBS and Treasuries, the Fed starts buying gold or other currencies. I’m sure Bernanke could come up with other ways also.
(via mattlehrer)
To some extent that’s what we’re doing with QE, but I don’t think a free-floating, reserve currency can actually be devalued the way, say, the Yuan could.
We would just need to print more. China has to use resources to maintain the peg. It doesn’t just stay put because they say so.
