Since neo-cons seem to prefer a weak dollar, do they also prefer huge deficits that create weak currency?

Question

It is hillarious to see people claim how wonderful a weak US dollar will be.

Have they considered the effect a weak dollar will have on the everyday citizen?

Mel (below) You can say that again. Gotta love a true conservative.

PNAC (below) I haven't given you a thumbs down or up yet.

hockeyra (below) To achieve the changes you are stating, the dollar would have to drop beyond close to the level of Chinese currency.

Answer 1

Having a weak dollar is good for exports. However, our dollar is not weak because our government decided to cut interest rates to make our currency more competitive and everything else is fine. Our currency is weak because not only did we cut interest rates, our deficit is something like 9 TRILLION dollars. Couple that with an unpopular government (other countries are putting their money into Euros) and us continuing to spend like jerks as well as a poor fiscal policy and we have a weak dollar that is getting weaker. A weak dollar will mean that just about everything will go up in price while wages stay stagnate.

I don't always agree with you Chi, but a weak dollar will hurt us more then help us in the end.

Also with this weak dollar, why is it that foreign investments have not come in? It is because we can't compete with China in manufacturing.

Answer 2

Deficit spending: to fund the war. Wars are emergenicies, they justify deficit spending. Tax cuts on dividends and capital gains, et al: Stimulate investment and thus the economy. Weak dollar: Makes imports more expensive and American labor and exports more globally competative, thus reducing the trade deficit. Of course, there are problems with all those rationales: Deficit spending: it'd be a deficit even without the war. Tax cuts: Investment is flowing overseas. Weak dollar: Key currencies like the Chinese Yaun and Japanese Yen, are being kept weak (by thier own governments) compared to the dollar. Even if they weren't the errosion of the dollar needed to reach competative 'purchasing power parity' would trigger hyperinflation in the US.

Answer 3

President Bush has been incredible for the Canadian economy, our economy was already strong ( the only G8 country with 12 straight surplus budgets ).Now with Bush the Canadian dollar is above par with the US greenback and we are a energy superpower. All I can say is thank you President Bush not being energy dependant. We will continue to supply you with oil. Under President Clinton the Canadian dollar was at 72 to 80 cents US, now we are at $1.04 to $1.10. I still can't see alot of manufacturing jobs going to the US because China will always be cheaper. Try to go shopping and only buy made in the US. Then shop and buy from China, see what is cheaper. If you want to open up the NAFTA I would agree to that also.

Answer 4

Why is it hilarious? A weaker dollar means investing in the US becomes cheaper for foreigners. That means people build stuff here and more jobs are created. The downside of this is that we don't get to flaunt the dollar around the world anymore. The federal deficit is not the (only) reason we have a weak dollar.

It takes years of economics courses to understand exactly why these things are, but trust us. These predictions fit the data.

Answer 5

Deficits such as the ones we are running these days are criminal...or they should be.

There are other ways to get a weak dollar which is, btw, much better for trying to sell the few things the US still has to export these days.

The "everyday citizen" will have to learn to accept a much lower standard of living in the future since the US is not likely to become competitive in the world again.

Answer 6

I totally agree. You would think they would teach what money actually is in school, considering it's the number one thing used by everyone. FIAT money is a joke. I feel like money only applies to the masses. We have strayed so far from tangible currencies like gold, silver etc. that most people think the dollar has real value. Unfortunately, all the interest rate cutbacks by the federal reserve not only weaken the dollar, but only push back the inevitable state of hyperinflation our country will be thrown into. It's all been planned this way though by the powers that be. It's happened before (Germany, Peru, etc.) and I wouldn't be surprised if this time the fantastic new world currency will be in place just in time to save us from our failed US dollar and that is a scary thing to anyone who can stop, look, and think for themselves.

For more info about what money is google "FIAT currency" and "hyperinflation"

Answer 7

Sure...it will bring back manufacturing jobs. Sounds pretty good to me.

By the way, huge deficits are not the only reason for a potential drop in currency value. There are many others, but that would require you to actually take some time a learn about economics. I doubt that will happen since you seem to spend most of your free time on yahoo answers in a vain attempt to prove how smart you are by modifying, and then re-modifying your arguments to avoid contradicting yourself over and over.

Oh look, a thumbs down...I wonder who did that?

By the way, why don't you enlighten us as to the effect a weak dollar will have on the everyday citizen?

Answer 8

You have yet to provide any proof and overly strong dollar is good. Enough with the labels already. I would call you and idiot but that would be demeaning to idiots.

Once again an overly strong US dollar makes US products more expensive in foreign markets so we export less = fewer domestic jobs. Please enlighten us all.

Answer 9

And yet your nobel prize winning prez Jimmy Commy Carter drove the dollar to being worth less than $.25, with annual double digit inflation, 14% auto loans, 12% home loans, $2.00 gas (which comapred to today's economy that equates to around $5.00 a gallon), gas lines where you had to wait for gas and all too often stations out of gas. We've had all the voodoo economics we can afford from you commucrats.

Answer 10

I cannot imagine thinking a weak US dollar is in anyway good,nor having Hugh deficits. It can do nothing for anyone at any time. i must not be a Neo.

Anyone who thinks that way are a Brick shy of a load.