Will inflation always bring about a lower dollar?

[Epiphany]

Laughable.

Actually it is the US with the weapons and military might. China is no real threat.

The US is using China to replace USSR: after all you need a big bad target to foster the old 'it's us VS them mentality'

If you think China is an aggressor, take a look at history. China has been the whipping boy for so long: even their biggest city Shanghai was divided into 6 pieces by the Europeans. And then the Japanese practically waltz into the country.

Politicians are just using scare tactics. Don't be a puppet.

 

[aPismoClam]

Quote from Trajan:

Yes, inflation is primarily a monetary phenomenon, and the more I look at it so too are currency exchange rate changes. For that reason, I think the days of the dollar's decline are done. It's not that it won't go back to 1.30, but that a break down to 1.40 or 1.50 vs the Euro isn't going to happen. Also, the risk in China is for higher inflation not lower. I really don't subscribe to the theory of buying the Rmb.

Also, from what I understand from people who deal with the Chinese government, they are are by far the most arrogant people on the planet. It will eventually blow up.

trajan, you GO for shooting straight about things. I posted something similar on another thread about how arrogant the Chinese I run into in business (domestically, and domestically employed) are and some moron who wishes he were a marine (and a man, apparently) totally lost it.

arrogance always blows up...and they are quite dependent on us -- our strength is capitalism, and communism can't even take a breath without capitalism to leech off of.

Oh, and furthermore, it's amazing how many otherwise intelligent-seeming people don't understand that inflation is by definition a monetary issue.

 

[gnome]

Quote from j0e:

I think the consequences of a week dollar are worse than the benefits received from exporting more.

Absofricken'-lutely!

THE most important asset America has is the value of its money. Destroy that (through currency-debasing inflation) and the country will know great poverty.

Since the creation of the Fed, the $USD has lost -99% of its value. Somewhere around -99.9% (when bread is $300 a loaf) Americans will wake up and say, "Hey, what are you doing to us"?