is a weak dollar in America's interest?

[MikeWaters]

I guess this makes US exports cheaper.

Is a weak dollar good for us?

[BlueHair]

I guess this makes US exports cheaper.

Is a weak dollar good for us?

I've been going back and forth on this. I think a weak dollar is necessary right now. Even with the weak dollar, we have a huge trade deficit. Can you imagine how much worse it would get if we had a stronger dollar? Japan and China have used this tactic to keep their economy rolling. China has not managed it well, and in my opinion, have set themselves up for disaster. I think the world economy is in for a huge roller coaster ride in the next couple of years. The good thing is the U.S. will come out on top in the end.

The one big glaring negative I see with the weak dollar is it is another form of taxation. The government drives down the dollar by printing money to pay it's bills. So the money we have in savings and the money we earn loses value. Basically they are taking money from us without having to call it a tax increase. We have lost something like 30% since 2002. Yet they have us fooled into thinking we are paying less taxes. Don't get me started on their phony inflation numbers. That's why I always get a good chuckle out of the Republican/Democrat tax debate. Republicans lower taxes then jack it from us with their dollar policies. Bottom line is we're going to pay no matter who is in office.

[ChinoCoug]

Here is an expert opinion:

http://www.usnews.com/blogs/capital-commerce/2007/3/2/probing-the-mind-of-bushs-economist-edward-lazear.html#read_more


On the trade deficit: The reason for the trade deficit ... is primarily, to my mind, the capital account surplus. It's not the trade deficit per se. It's that people want to invest in the United States. ... I think of that as a good thing.