Why Is Everyone a Fiscal Hawk NOW!

[steven787]

akuma587 said:

steven787 said:

People keep talking about "printing" too much money... ("printing" = buying bonds) That is not the US's problem right now. The US$ is over valued, along with the Yen. "A strong dollar" is not the same thing as an "Overweight dollar". When every other major economy on the planet is "printing" money like crazy, the US has no choice but to join in because it would kill US productivity if our money continues to outpace the Euro and the Pound. (Sorry, I don't feel like giving an economics lesson, someone else can explain why overweight currencies make for lower productivity.)

Yeah, the dollar is artificially overvalued as of now due to the economic crisis.  Once things cool down, I'd expect it to plummet back down, especially when oil starts rising again.

But at least for now it will actually help us.

 

But that's the thing, it doesn't help us.  China and India, our biggest customers for high tech goods, will go and buy from the EU because the Euro is cheap right now.  Europe, our best customer for machinery, will buy domestically or from China because the dollar is too expensive.  Meanwhile, low oil and other mineral prices mean further destabilization of oil producing countries and deeper poverty in South America, which will lead to food shortages... Where does the world buy its food from? America.