Thread: What Obama Isn't Telling American Workers

October 13, 2009

The Consequences of a Cheaper Dollar

What Obama Isn't Telling American Workers

By SHAMUS COOKE

A lot is happening in the tumultuous realm of global economics. The “Great Recessionâ€

[quote]The first unmentionable fact is the long-term decline of the dollar, a phenomenon that can now be considered government policy. The business magazine Forbes comments: “The Treasury Department would never admit this, but for the time being it's in the country's interest to keep its currency low because it stimulates exports for the economy's manufacturing base and lowers the value of the debt that the Treasury is piling up.â€

A falling dollar simply makes foreign goods and services more expensive. This is bad for oil and bauxite, but the reason we have lost our manufacturing base is that it was too expensive to keep it here - foreign goods and labor were cheaper. A falling dollar will change that. We need to produce more energy locally, and adjust for a few other goods, but other than that we could see jobs and manufacturing make a comeback. What made offshore outsourcing work was the strong dollar vs. other currencies like the rupee. Once it gets to be 35-33 rupees to the dollar, look for India, Inc. to break out the Kleenex.

Agree here, BR. China and Russia have been promoting a basket of currencies to replace the US dollar as the reserve currency.
With a falling dollar, the inflation will begin for workers in this country, and with the falling dollar the rest of the world will be rushing in here to buy up everything they can, everything from our real estate and infrastructure to things like clothes. (Saw the Germans swarming FL and when I went to a clothing store, I would buy one or two things while they had shopping carts overflowing. )
Soon the dollar will be less expensive than the paper, ink and processing to produce it.

We could fill a volume of books with what Obama isn't telling us. What we ARE getting is a book of Lies, Deceit, Treason and Treachery. Coming to a bookstore near you.