an interview on the ABC with an economist (not another) where he made the following points;
Govts can handle inflation but not deflation. With deflation they have nowhere to go eg japan. Given the choice govts will opt for inflation. The US is looking dangerous as they have already dropped % rates significantly and have little room to manoeuvre. Your figures may give them some optimism.
Generally it was felt that the $US must come down as it is using up all the worlds capital. It would be better over some years to lessen any shocks however down it has to go.
