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To: robert b furman who wrote (400)10/23/2013 9:44:42 PM
From: gold$10k  Read Replies (1) | Respond to of 15903
 
<Get a loan with expensive money and pay it back with cheap money>>

As I understand it, that would be the U.S. Treasury, not the fed, which gets a loan by selling bonds... and the fed buys bonds with money it creates out of nothing. Is this correct?



To: robert b furman who wrote (400)10/23/2013 9:53:02 PM
From: zman69  Respond to of 15903
 
Exactly!

I say crash that buck. ;)

This is good article on why a devalued Dollar ain't such a bad thing.

krugman.blogs.nytimes.com



To: robert b furman who wrote (400)10/23/2013 11:09:08 PM
From: skinowski  Read Replies (1) | Respond to of 15903
 
Get a loan with expensive money and pay it back with cheap money - not a bad deal.

Yeah, but... this doesn't really sound too honest. "Borrowing" money without intending to repay in equal value plus interest is... well... Not a good ethical foundation for a nation.

It seems to me that increasing exports through weakening the currency implies that you will be paying your workers less (in "real" value). So, why not directly and honestly decrease wages? Why do it surreptitiously, through eroding the currency?