.... reduce the value of the US dollar, and make our export products less expensive
I believe the value of the US dollar is getting to the point where it is over-priced, with respect to the cost in foreign currency. The marginal utility that a foreign country gets out of US purchases is rapidly decreasing. I have not heard any specific numbers, but I'm sure that as the US dollar rises in value relative to other currencies, there will begin to be a trade deficit (if there isn't one already). This is not a favourable situation for the US to be in, and has been cause for concern in the past, for both patriotic and economic reasons. I look to the near future, possibly within a year, for the US dollar to correct in price, so there is less disparity with other currencies (especially G7 countries).
Currently, there are many countries where the currency of choice is the US dollar. Besides gold (I think of it as currency), it seems to be the only currency that tends to hold it's value and is widely preferred in countries where inflation runs amok. |
