4 replies to this topic

[HeyMoe]

Can someone explain to me what is meant by a "weak dollar". Larry Kudlow was talking about this on the radio this AM and while I have an idea of what it means, I have some questions;

* What causes our dollar to be weak?

* What can be done about it?

* Which of our potential presidents would be better for the dollar?

Edited by HeyMoe, 08 May 2008 - 05:20 PM.

[dag]

Can someone explain to me what is meant by a "weak dollar". Larry Kudrow was talking about this on the radio this AM and while I have an idea of what it means, I have some questions;

* What causes our dollar to be weak?

* What can be done about it?

* Which of our potential presidents would be better for the dollar?

not a finance guru but the best way to strengthen the dollar is for us to go into a recession and have other countries invest in us instead of investing in them. the president that spends less in FDI is our best president for it.

[BYU Born (roveram)]

I posted this awhile back:

One of my favorite doomsday arguments is the sheer panic over the weakened dollar.

After we ditched the Gold Standard in the early 70's the government (specifically the Fed) had much more flexibility to fuck with the money supply. Increased supply lessens the value of the $ v. the euro, LB, douche mark, etc. For us in the States, it doesn't make much difference. We can still slap down a dollar and buy a Coke. But that same Coke sold overseas now sells at a discount due to the appreciation of the foreign currency. Coke USA gets the same dollar, but now sells 3 times the amount of Cokes internationally.


Works in reverse too. Foreign products are more expensive for us. Demand for U.S. goods increases.


Multi-national companies based here are kicking ass right now. Probably why the stock market hasn't crashed.

btw - Kudrow is a smart motherfucker. That guy knows his shit.

[HeyMoe]

http://www.chicagofed.org/consumer_informa...weak_dollar.cfm

[BYU Born (roveram)]

Moe, they stole that shit from me.