Re: Is a cheaper dollar better?
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I've heard this said numerous times recently, and it's argued that a cheaper dollar will boost our export market with multinational US companies receiving full benefit. Won't this help to balance our problem of consuming more than we sell?
Anyway, I was wondering if anyone here believes that a falling USD index can be a good thing. Either way can you explain yourself, all this is fairly interesting and I'm new to it all.
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Yes a country can devalue their way to prosperity (again just kidding). Saw articles today that Sarkozy is putting pressure on ECB to loosen monetary policy because the value of the Euro is threatening to kill a lot of European exports. To answer your question, think about people/businesses in the U.S. that benefit from a weaker $ and thing about people/businesses that benefit from a stronger $. The fundamentals for continuing weakness in the U.S. $ seem to be in place. However, I'm starting to get a little bit leary of bets agains the US $ since my perception is that so many people/institutions are on that side of the trade i.e. betting agaisnt the US $.
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