View Single Post
Old 09-21-2007, 12:48 PM  
Shok
Confirmed User
 
Shok's Avatar
 
Join Date: Apr 2001
Location: LIVE EVIL
Posts: 5,611
The dollar is weak because interest rates are low.

This is a good thing because it regenerates domestic exports.
More business comes from outside the states.

The down side.......so it costs a little more to travel to europe, big deal.

When the feds raise rates, the dollar will strengthen.
This happens a lot over time, it's a continual process.

If say the dollar stays weak for a long time, it will only improve our trade deficit. But it will never remain weak permanently because the rates will begin to climb soon enough bringing foreign currency investments.

Last edited by Shok; 09-21-2007 at 12:50 PM..
Shok is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote