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It's all about the benjamins. Just not US currency. That's worthless.
Crazy Cooter:
I spoke with my coworker who is going to Malaysia soon and he said it is already ~ 1 to 1 for buying power there.
i.e.: A $6 USD drink here costs $6 USD there. It used to be that you could leave the country with a couple bucks and live the high life. Not the case anymore. Are there any "cheap" countries to live in where you won't get caught up in a revolt/civil war/drug war?
fredster:
Is it better or worse for the US economy if the dollar falls?
Won't goods overseas sell better if the dollar is lower? What's the downside of the dollar falling? It's been 104 to the yen before, back in '94 I think.
Dartful Dodger:
--- Quote from: fredster on February 22, 2005, 10:21:36 pm ---Is it better or worse for the US economy if the dollar falls?
Won't goods overseas sell better if the dollar is lower?
--- End quote ---
GGKoul:
--- Quote from: Dartful Dodger on February 23, 2005, 12:31:48 pm ---
--- Quote from: fredster on February 22, 2005, 10:21:36 pm ---Is it better or worse for the US economy if the dollar falls?
Won't goods overseas sell better if the dollar is lower?
--- End quote ---
--- End quote ---
mahuti:
The downside is that American cost and inflation start to rise. Americans buy less foreign & american products, our economy slows and our buying power drops. As long as other countries do not really on American consumerism for THEIR economies, this will likely not affect them. If the country does rely on Americans buying their products, eventually their economies begin to slow as well.
In the short term, Americans get the short end of the stick, both at home and abroad. Only the current power of the economy mitigates this drop. If it continues to drop, however, inflation will rise at a more dramatic rate, and the economy may suffer a recession.