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Strategies & Market Trends : The coming US dollar crisis

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To: ayn rand who wrote (23565)10/18/2009 10:54:49 AM
From: philv1 Recommendation  Read Replies (1) of 71475
 
The money printing and all the slight of hand stimulus and dodgy accounting that has occured and is ongoing in the US would have sunk any other country.

The US has benefited greatly due to its pre-eminent economic position in the world. That has enabled a zero interest rate policy without collapsing the dollar. Foreign imported goods remain cheap. In those terms, the US has not had to do what the IMF has in the past forced other countries to do, that is to raise interest rates in order to borrow funds.

The US can talk up the dollar all the while its actions point to the opposite direction. In other words, the US does not have to pay the price of maintaining a strong dollar. That is a pretty sweet spot to be, for the time being anyway.
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