| "Exchanging our assets for foreign goods doesn't depreciate the currency. The buyer just has fewer dollars, but the dollars aren't worth any less after of the transaction." On the contrary, that is what is sustaining the dollar -- it appreciates our currency. Think of it this way Bill -- if all the money you have in the world was invested in your house, and if you had no income, you could sell equity in your house or you could borrow against your existing equity and use that money to buy a new Lexus, take a vacation, upgrade your Italian suits, eat at the best restaurants -- etc., etc., etc.... and this could go on for many, many years with little ill effect. But eventually you would own nothing and the Lexus would be a rust bucket, the vacations would be over, the suits would be frayed and the food would be flushed down the toilet. You can only live high on the hog from selling assets for a limited period of time -- the richer you are, the longer you can do it... But when the tide turns it is not going to be pretty. |
