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To: 1010RD

A strong dollar is good for the American consumer: more purchasing power.

A strong dollar is bad for US exporters, making their products more expensive abroad. However, for US exporters who rely on foreign inputs for their products, they also benefit from a strong dollar.


31 posted on 08/13/2015 9:23:33 AM PDT by kevao (Biblical Jesus: Give your money to the poor. Socialist Jesus: Give your neighbor's money to the poor)
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To: kevao

Exactly. So Democrat Media is a shill. The only danger of the Yuan devaluation is that if our interest rates go up, we are exporting inflation. Under that scenario we should expect prices here to fall further, particularly in RE.

The FED is out of bullets and we remain in a very deflationary environment. They should bite the bullet and let the interest rate float back up to normal, wherever the market takes us. That would wash out the bad capital and cause an inflow of good capital.

Once Obama is out of office that can also be achieved through fiscal policy via tax and regulatory reform. What will happen either way is that Americans will continue to innovate their way around the problem. High prices cure themselves.


33 posted on 08/13/2015 10:42:04 AM PDT by 1010RD (First, Do No Harm)
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