Hmmm... Not sure what this has to do with the original thread but IMHO Greenman wants to devalue the US dollar as his contribution towards economic recovery.
This would act as a replacement for implementing unpopular fiscal policies (e.g. control US deficit) and to boost aggregate demand.
A lower dollar means cheaper exports and dearer imports thus increasing domestic demand and increasing employment.
This is at the risk of inflation which Greenman might otherwise like to provide a needed offset for an interest rate policy which is almost underwater ... albeit at the price of economic growth.
A devalued currency is seen as a sign of risk with credit worthiness and foreign investment woes usually following.
US Fed low dollar policies therefore might actually exacerbate a recessionary pressures rather than act as a remedy.
Nothing new about this ... the US economy has always been about keeping all the balls in the air at any cost ... and usually someone else's.
Cheers ...
This is only my view ... read the red stuff.
- Forums
- ASX - General
- just as a precursor ...
just as a precursor ..., page-6
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