Some speculate he may have dramatic things to say about how he envisions the Fed helping the US economy , and some say from this speech we will get a clearer picture of what is happening to the US dollar..
Me personally I think the dollar is near a major devaluation..the key thing I watch are Gasoline prices..
Gold is currently at an all time high in the high $1300 an ounce.
Probably what needs to be done is the major powers of the world need to meet and come to a new consensus for the world monetary exchange rate system like the plaza accord agreement.
The Plaza Accord or Plaza Agreement was an agreement between the governments of France, West Germany, Japan, the United States, and the United Kingdom, to depreciate the U.S. dollar in relation to the Japanese yen and German Deutsche Mark by intervening in currency markets. The five governments signed the accord on September 22, 1985 at the Plaza Hotel in New York City.
The exchange rate value of the dollar versus the yen declined by 51% from 1985 to 1987. Most of this devaluation was due to the $10 billion spent by the participating central banks. Currency speculation caused the dollar to continue its fall after the end of coordinated interventions. Unlike some similar financial crises, such as the Mexican and the Argentine financial crises of 1994 and 2001 respectively, this devaluation was planned, done in an orderly, pre-announced manner and did not lead to financial panic in the world markets.
The reason for the dollar’s devaluation was twofold: to reduce the U.S. current account deficit, which had reached 3.5% of the GDP, and to help the U.S. economy to emerge from a serious recession that began in the early 1980s. The U.S. Federal Reserve System under Paul Volcker had overvalued the dollar enough to make industry in the U.S. (particularly the automobile industry) less competitive in the global market.
The 1985 “Plaza Accord” is named after New York City’s Plaza Hotel, which was the location of a meeting of finance ministers who reached an agreement about managing the fluctuating value of the US dollar.
Devaluing the dollar made U.S. exports cheaper to its trading partners, which in turn meant that other countries bought more American-made goods and services.