Geithner Says Strong Dollar ‘Very Important’ to U.S.

Oh boy, have I been wrong!!! I think I understand now...they REALLY DO want a strong dollar!!!

Check out this link -> http://tinyurl.com/ykzszuy

That explains it all!

-gastropod

 

bravo

 

Just recite this line like a parrot and you have a shot at the Fed.

Paulson: "a strong dollar is in our nation's interests"

http://www.nytimes.com/2006/08/02/business/worldbusiness/02iht-paulson.2362315.html

 

What would you do if you had a lot of debt and wanted to get rid of it? You would probably spend less money and get a second job. However, our political leaders are spending MORE money, not cutting spending. If they CUT spending, they would not have to print as much money. I guarantee that if the world saw our government making dramatic spending cuts on social programs and military spending and printing fewer dollars, the value of the USD would rise. But I also guarantee that such dramatic spending cuts will never occur under this administration, unless creditor nations threaten to stop floating our debt.

Oh, and about getting a second job, that is analogous to our country raising taxes. Get ready for the highest tax rates in history, coming soon.

 

If everyone has to unwind short dollar, could get strong fast. I'm not holding my breath, but it is a boogie man. This little bubble pops not much to prop it up again.

 

You bring up an important point. The solution may eventually be forced upon us by outside entities (floating debt).

 

I iknow how to fix it. Cut government spending and simultaneously cut the taxes by the same amount. People will have more money in their pockets and it will be a less hostile environment for business, spurring additional business investment which would create demand for the dollar.

I'll take that nobel prize in economics now.

SM

 

Oh. I thought "strong" meant a smell, like over ripe cheese or dead bodies.

 

Thanks Adadadog! I knew that there were others out here of sufficient knowledge and understanding that would be able to make the correlation of the content from the link to the present item of discussion - the "strength" of the dollar....or other such implements.

Please opine on my quandary: Was the info on the link to complicated for even the first year MBA student (of even our finest institutions)? Should I have prefaced with more information that could have helped elucidate such a complex comparison?

Regards,
gastropod