Figured out how to defend the dollar

Discussion in 'Economics' started by scriabinop23, Feb 28, 2008.

  1. Bernanke, Bush, and Paulson simply need to do one thing: state their true intentions.

    The psychology will reverse quickly.

    Meanwhile, USDJPY looking like a long term investment at 104.75 right now.
     
  2. Tums

    Tums

    Low dollar is a weapon.
     
  3. what happened to the chinese/u.s. tension over the us abandoning their own currency? if they were pissed before...
     
  4. dcvtss

    dcvtss

    What if their true intentions are to bail the banks out at the expense of everyone else? Actions are speaking louder than words right now, at least in my opinion.
     
  5. The best thing we can do as a country to restore respect and value to the dollar is to adopt the Fair Tax.

    http://www.fairtax.org
     
  6. Agree wholeheartedly that the fair tax is the right way to go.
     
  7. Can someone tell me why a weaker dollar from lower interest rates is not in our best interest? So many are basing Ben and Co for 'debasing the dollar' but I just am having a hard time seeing the downside.

    As I see it we get the following,

    Higher energy prices which should lower the amount we import as we start to conserve it.

    Higher exports especially for high value big ticket items (think Boeing)

    lower imports as production moving abroad is slowed/reversed resulting in a net plus in the trade deficit

    The lower interest rates should encourage investment and make it easier for businesses that are in debt to be profitable

    The only downside I see is some inflation and maybe its a matter of opinion but it appears to me that if the inflation is not very high that the benifits outweigh the costs.



    These are just some thoughts of mine after a long day