QUESTION
Quantitative Easing EssayQE IIIâs impact on the U.S. economy. Specifically, as the âbrain trustâ of Obama, Yellen and Lew continued implementation of QEIII could this process drive the U.S. dollar out of the worldâs reserve currency status? How did other major Central Banks responded to the U.S. action of QE implementation. What happens to U.S. enterpriseâs borrowing competitiveness and the riskiness of their cash flows if the U.S. dollar is no longer the worldâs reserve currency? Will the current discussion of lifting off historical interest rate lows slow or prevent the process of the U.S. dollar falling out of the reserve status?Things that need to be answered.- Important to understand what a Reserve Currency is and how the U.S. dollar obtained this status.- What commodities point to the U.S. dollar as the Reserve Currency?- What happens to the value of the dollar if the Reserve status is lost and how does this change the cost structure for U.S. businesses?- Impacts of higher costs on the $19T debt as lifting off of historical lows begins and the cost of the deficit climbs in the form of higher interest costs to the U.S. tax-paying base.- Tax increases on the 52% of the taxpayers who actually pay taxes in the U.S. will drive behaviors that politicians donât consider â U.S. dollars held to outside the U.S. to mitigate the U.S. 35% corporate tax rate â How would a rational U.S. corporate tax policy allow these funds to repatriate and boost investment in the U.S.?- How did the Obama âbrain trustâ engineer the first down grade of the U.S. credit rating (the first time in U.S. history) Why did Obama allow this to happen? Is a weakened U.S. currency and economy better for U.S. citizens or an intentional policy before he leaves office?- The Fed Banking system is operating with reserves that are at historical highs. Why havenât the reserve levels had a positive impact on lending in the U.S. economy?
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