Cleveland Fed's Pianalto Gets Grilled By High Schoolers, Can't Explain a Crappy Dollar
Thanks for the appropriate stock photo, Chicago Fed
I mean really, it is a complicated explanation, even for Fed Presidents. And especially high school students.
The best part? Claiming that the Fed has nothing to do with the value of the dollar when asked what the Fed was doing to protect its value. Ha! Do they teach them now that the Fed's job is to care for the dollar that they've eroded 95% since they showed up on the scene in 1913?
So many variables affect the value of the dollar that it is hard to know where the greenback is headed, Cleveland Federal Reserve Bank President Sandra Pianalto said on Saturday.Blame it on the Treasury, that's hot. Speaking of the Treasury, if shred from your local Fed bank isn't your thing, how about buying a 5 lb bag of it from the Bureau of Engraving and Printing? Those guys let us know that 95% of the new bills produced are created to replace bills already in circulation but that doesn't really explain wildly fluctuating numbers of new bills each year, does it? I guess that 5% "new" money is amortized across Lord knows how long. Damn if only I were still a high schooler.
Taking questions after addressing a group of high school students, Pianalto, a voting member of the Fed's policy panel this year, was asked what policies were being put in place to safeguard the dollar's value.
Pianalto noted that dollar policy was not under the purview of the Federal Reserve, but added: "The value of the dollar is set by the markets and there are so many variables. It is just very hard to know what direction it is going to go."
U.S. dollar policy is directed by the Treasury Department.
The beating continues. That's not so hot unless you don't hold any US Treasurys and think it's funny to watch.