GreyWolf |
09-29-2007 03:35 AM |
Quote:
Originally Posted by pocketkangaroo
(Post 13160707)
That is why a weak dollar isn't bad for Americans. It lowers imports, increases exports, and brings more jobs into the US. The dollar was overvalued for awhile here, things are starting to even out.
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Well... if you want to pay with a weaker dollar, of course it costs more in actual real value - manufacturers in other countries are not interested in quoting weak dollars - hence it will cost more for imports.
It sure as hell has no hope of "lowering imports" - imports continue to cost stupid levels and totally unsustainable. That is one of the major core problems with the US economy at this time and reflected in weaker dollar value.
Exports in theory should work - the only problem with that is there is little to export - it's mainly imported and consumed on credit.
It may be worth mentioning the US has never had a trading surplus for almost 40 years and has gradually built a staggering international debt - the economy is unreal and totally unsustainable. The core problem for the weak dollar is debt - volumes of it and little prospect of repayment on the horizon.
It will be a few decades before anything evens out - assuming there was a desire and ability to even address that. Meanwhile, bets on, it will get far worse before it gets any better.
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