Freight Fallout Across the Seas . . . .

[errolanderson]

Hopalong. . . . out-of-control government debt.

The U.S.is in no safe financial position to hike rates at all (IMO). If they do from intense lobby pressure and the experiment fails, this could be a disaster as Yellen would have to cut rates possibily into negative territory. Then welcome QE4 . . . and the global currency war worsens.

The outcome is this would not be good. . . .

[Hopalong]

Thinking about low or negative interest rates and why they are not a de facto way to lower the value of a currency as compared to othe currencies or mediums of exchange.
How can lower value dollar be both cure for world economic problems and at same time give us confidence that it will not continue until it becomes worthless?

[errolanderson]

Hopalong . . . you are right, that's the dilemma. But global exporters trying to get past the debt curve want the lowest possible currency to maintain factory output and jobs.

The U.S. is the exception and so the U.S. thinks they are the exception despite their government debt nearing doubling in the past 8 year approaching $20 trillion.

Mis-timed rate hikes are much like a stick of dynamite. Allen Greenspan found that out when he hiked rates effectively popping the dot.com bubble in 2000.