Quote:
Originally posted by turbo6bar
Oh, boy. Now we're getting somewhere, or maybe not.
So whatsit gonna be, Benny B? This one is too close to call.
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I find this very interesting. Especially in wake of Bushy's comment during the 2004 election in which he said "I've always believed the best policy of the United States to be a strong dollar policy". I literally busted out laughing - either he slipped and made a mistake or he failed economics 101 - which would actually explain a lot.
"Strong dollar policy". Right. This administration? That's why we've spent like drunken sailors, driven up the defecit to unprecidented levels and embarked on the most unsustainable financial path this nation has ever seen? How 'bout sitting idle as jobs go flying out of this country practically as fast as the dollars? About the only things coming IN are cheap, junky Chinese-made goods and illegal aliens. And the only reason THOSE are coming in here is because the dollar just happens to be stronger than the Yuan and the Peso - and that ain't saying much.
A related thing of great concern to me is the amount of the U.S. economy that's being propped up by Chinese investment right now. If/when the Chinese decide that the U.S. isn't such a hot investment any more and start pulling out, it could very well create an international run on U.S. dollars and rapidly crash our economy. Sadly, there isn't much to prop it up either. Job growth is still kind of so-so. The jobs lost in the last recession have been re-created, but they're typically lower paying and less skilled. Inflation is on the rise. Nothing is really manufactured here any more. Insurance and medical costs are crippling business growth. We don't export anything except bombs it seems. This is not a good formula for reversing a huge debt load in the future.
My bet is that we'll be on a "weak dollar policy" for a long time simply because there's no way to get back to a strong dollar policy easily. I agree that we SHOULD have a stronger dollar to compete against a unified Europe and rising pressures from Asia. Hell, even Canada is practically 1:1 with the USD now.