Hi Stonedinvestoor. It is amazing how US policymakers try to solve their economic porblems by depreciating the US currency. If they contnue this path, it will be no surprise to see a 1987 style stock market meltdown despite the fundamental soundness of the US economy. If the US policymakers want to generate economic growth, they should rather pursue the comparative advantage card and not the $ devaluation path ( i.e. promote BA not salvage GM).
This continued weak dollar policy year after year losing 15%-20% on our currency it's got to come back and haunt us at some point. You understand that, I understand that. But the average voter does not. If you're a politician you much prefer inflation to the practical alternatives, i.e., raising taxes or reducing spending. We are attempting to inflate our way out of debt. The end result is pretty much the same whether you tax or whether you inflate, but in the former case you get lots of guff, and in the latter, people just wake up one morning and don't know what hit them.
Comparative advantage, I don't think we have that edge anymore. We are too dependent on foreign goods and services, the only one way for the US economy is the downward path. How pathetic.
Not only are higher rates good , but highert oil is also a good thing. Just look how the market loves higher oil today.
"Comparative advantage, I don't think we have that edge anymore. We are too dependent on foreign goods and services, the only one way for the US economy is the downward path." There is a duopoly in the commercial aircraft business with BA beating the competitition badly. There is no real competition for the US military aitcraft business.