in an economic downturn it is not a foregone conclusion that a rising dollar is a good thing. The stronger the dollar, the weaker u. s. exports are.
The less we can export, the worse the hit on the economy.
A strong dollar is great when the economy is gangbusters because it gives us buying power, but there is a trade off.
International buying power (strong dollar) means export jobs in OTHER COUNTRIES.
Beyond that strong/weak money comes from more than one source. It can come from external pressures (like an unstable situaion in the EuroZone) or it can come from internal pressures (like the rising inflation driven by expanding the money supply).
Further, measuring the dollar vs. one other currency does not paint a complete picture. you have to take a lot of factors into consideration.
What is the dollar doing against the Pound Sterling? What about the KIWI? What about the Canadian Dollar?
What about the dollar against precious medals and other commodities?
Measuring the USD against the EUR and claiming victory is akin to deciding how good the Detroit Lions are by watching a Oakland Raider game when the Greenbay Packers are winning the Superbowl.
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Jd has to stand with Obama, some brothas have to stick together ! Other Brothas like Charles Barkley and Bill Cosby tell it like is ,Terrible Terrible Terrible !
Jd has to stand with Obama, some brothas have to stick together ! Other Brothas like Charles Barkley and Bill Cosby tell it like is ,Terrible Terrible Terrible !
Really, Canam? Don't like throwing out the R word, but pretty sure it applies to this statement. Despicable.
in an economic downturn it is not a foregone conclusion that a rising dollar is a good thing. The stronger the dollar, the weaker u. s. exports are.
The less we can export, the worse the hit on the economy.
A strong dollar is great when the economy is gangbusters because it gives us buying power, but there is a trade off.
International buying power (strong dollar) means export jobs in OTHER COUNTRIES.
Beyond that strong/weak money comes from more than one source. It can come from external pressures (like an unstable situaion in the EuroZone) or it can come from internal pressures (like the rising inflation driven by expanding the money supply).
Further, measuring the dollar vs. one other currency does not paint a complete picture. you have to take a lot of factors into consideration.
What is the dollar doing against the Pound Sterling? What about the KIWI? What about the Canadian Dollar?
What about the dollar against precious medals and other commodities?
Measuring the USD against the EUR and claiming victory is akin to deciding how good the Detroit Lions are by watching a Oakland Raider game when the Greenbay Packers are winning the Superbowl.
Thanks for this post Ferd.
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