Figured out how to defend the dollar

S

scriabinop23

Bernanke, Bush, and Paulson simply need to do one thing: state their true intentions.

The psychology will reverse quickly.

Meanwhile, USDJPY looking like a long term investment at 104.75 right now.
 
What if their true intentions are to bail the banks out at the expense of everyone else? Actions are speaking louder than words right now, at least in my opinion.
 
Can someone tell me why a weaker dollar from lower interest rates is not in our best interest? So many are basing Ben and Co for 'debasing the dollar' but I just am having a hard time seeing the downside.

As I see it we get the following,

Higher energy prices which should lower the amount we import as we start to conserve it.

Higher exports especially for high value big ticket items (think Boeing)

lower imports as production moving abroad is slowed/reversed resulting in a net plus in the trade deficit

The lower interest rates should encourage investment and make it easier for businesses that are in debt to be profitable

The only downside I see is some inflation and maybe its a matter of opinion but it appears to me that if the inflation is not very high that the benifits outweigh the costs.



These are just some thoughts of mine after a long day
 
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