[Wrecked944]

Shaun, one of the reasons I bought Porsche stock was that I heard the US Treasury Secretary state in public that the administration intended to allow the value of the dollar to fall. So I figured I needed to buy some top notch stock denominated in euros to get the double whammy of increased share value and the currency boost. It worked really well.

So the dollar devaluation is not an accident. And like most things it is both good and bad. Since our national debt is denominated in dollars, we get to pay back with deflated currency which is probably good (in the short term). We also get higher prices on imported goods - which is not necessarily a bad thing. The downside is that the dollar becomes less attractive to foreign investors and so our currency and debt look less appealing to them. Oh wait, maybe that is a good thing...sort of. Or not.

Anyway, the point is that letting the dollar float down a bit is neither absolutely good nor absolutely bad. At present it seems the administration has decided that a bit of deflation is a good thing on balance. And frankly, they may be right on this one - so long as they don't get carried away with it and let the dollar plummet.

In the meantime, I figured the statements by the Treasury Sec were a "freebee". Anytime a govt official tells you in advance which way a currency is going to go, then that is like money in the bank. My porsche stock is rockin' (although I am having trouble selling it - but that is a totally different story).