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Old 06-07-08, 10:57   #128 (permalink)
Hippie3
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Join Date: Feb 2001
Posts: 36,124
actually there are advantages
such as reducing the real national debt.
let's say we owe country A a billion dollars that we borrowed in 2005.
the biliion we repay in 2008 is worth less in absolute terms
than the billion we borrowed
thus we accrue a profit, offsetting the interest, from weakening the dollar.
also a weak dollar makes american products cheaper
on the world market, boosting exports
while making foreign goods more expensive
thus reducing imports.
a cheap dollar also makes tourism and investment in american assets more attractive to foreigners
while tending to keep americans at home spending here.
the real losers
are the super-rich and mega-corps , banks and governments
holding large amounts of american currency
now worth a lot less.
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Last edited by Hippie3 : 06-08-08 at 13:06.
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