MUCH OF ECONOMIC ACADEMIA GOES WITH THE NOTION THAT THE WEAK DOLLAR IS.."A GOOD THING" AND "NATURAL" AND WILL "HELP" THE US ECONOMY.
PURE BULLSHIT!!
BECAUSE THERE IS A PROBLEM:
TRUE, WE PAY OUR FOREIGN DEBTORS BACK...WITH A WEAKER CURRENCY WHICH IS NOT WORTH AS MUCH AS WHEN WE BORROWED THEIR MONEY FROM THEM... ALL IN OLD FASHION "HIGH VALUE" DOLLARS...
BUT WHAT ABOUT THE FOREIGERS...? ARE THEY GOING TO PUT UP WITH THIS OR WILL THEY PUT THE US ON THEIR "CREDIT WATCH" LIST....?
MOST COMMODITIES ...LIKE OIL...ARE PRICE IN DOLLARS...SO A WEAKER DOLLAR MEANS MORE INFLATION IN COMMODITY PRICES...WHICH DIRECTLY IMPACT THE US REAL ECONOMY... AND NEARLY ALL COMMODITIES ARE BOUGHT AND SOLD GLOBALLY "PRICED IN DOLLARS!" THIS IS GAURANTEED INFLATION FOR THE US...BUT NOT FOR THE EURO ZONE OR ELSEWHERE
MOST IMPORTANT....THE NOTION THAT THE US WILL "EXPORT MORE" BECAUSE OUR "PRODUCTS ARE CHEAPER"...IGNORES THE INCONVENIENT TRUTH THAT:
AMERICA DOESN'T PRODUCE MANY HIGH VALUE ADDED PRODUCTS ANYMOE...ALL THE FACTORIES ARE IN CHINA OR MEXICO!
THE BIGGEST EXPORTS FROM THE US ARE....RAW AGRICULTURAL PRODUCTS...AND VARIOUS RECYCLEABLE "SCRAP"...SCRAP METAL, SCRAP PAPER ETC...WHICH GOES TO CHINA AND OTHER LOW WAGE ECONOMIES FOR PROCESSING INTO HIGH VALUE EXPORTS WHICH THEY SEND BACK TO THE US...THUS INCREASING THE AMERICAN TRADE DEFICIT...
YOU WILL BE HEARING A LOT OF BULLSHIT ON THE DOLLAR FROM SO CALLED EXPERTS...AND THE THREE POINTS MADE ABOVE ARE ALL QUICKLY GLOSSED OVER WITH THE GENERAL STATEMENT:
WELL, AN ESPRESSO IN PARIS WILL COST YOU MORE!!
WHAT PURE BULLSHIT...! BUT THIS IS A NATION THAT HAS BEEN RUNNING ON BULLSHIT FOR SO LONG THAT THE TRUTH SEEMS ODD AND SCARY TO MOST IGNORANT AMERICANS...!
