tag:blogger.com,1999:blog-29763791.post6845762190310865519..comments2023-10-31T05:07:19.353-04:00Comments on Delenda est Carthago: The Weak DollarDr. Φhttp://www.blogger.com/profile/14086783503820477029noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-29763791.post-72875741583429982042009-10-24T04:06:45.621-04:002009-10-24T04:06:45.621-04:00We manufacture stuff? Really?
More than any other...<i>We manufacture stuff? Really?</i><br /><br /><a href="http://seekingalpha.com/article/165958-u-s-still-the-world-s-largest-manufacturer" rel="nofollow">More</a> than any other country in the world. It just doesn't take as many of us to do it anymore.DaveinHackensackhttps://www.blogger.com/profile/01313169814904229272noreply@blogger.comtag:blogger.com,1999:blog-29763791.post-31814440108630398112009-10-22T15:16:34.289-04:002009-10-22T15:16:34.289-04:00Peter: We manufacture stuff? Really?
Justin: I...Peter: We manufacture stuff? Really?<br /><br />Justin: I wasn't aware of the dollar carry trade. It sounds awfully speculative, since the banks' investment could be wiped by foreign defaults or changes in the exchange rate.<br /><br />Gosh, what would they ever <i>do</i> if that happened?<br /><br />Kind of answers itself, doesn't it?Burkehttps://www.blogger.com/profile/14252946969701576139noreply@blogger.comtag:blogger.com,1999:blog-29763791.post-2035857678652993272009-10-22T13:03:30.249-04:002009-10-22T13:03:30.249-04:00A weak dollar can give U.S. manufacturing a much-n...A weak dollar can give U.S. manufacturing a much-needed boost. If it also means that we buy fewer imported mega-screen TV's, well, that may be a decent tradeoff.<br /><br />PeterAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-29763791.post-32982037992074449052009-10-22T11:30:15.572-04:002009-10-22T11:30:15.572-04:00There is also the issue of the dollar carry trade,...There is also the issue of the dollar carry trade, caused by our bottom of the barrell interest rates. It allows the financial powers to borrow money in dollars, sell the dollars for foreign currencies (such as Brazil's and Australia's), then get high paying returns in those foreign countries. This daily selling of the dollar by international investors is a major factor driving it down. <br /><br />Is it bigger than the drive to get off the dollar as the reserve currency? I suspect in the short term, it is. At least the carry trade is potentially reversible, if we raise interest rates. <br /><br />The end result seems to be very bad: high inflation without economic activity. The inflation in this case caused by collapsing dollar in our import-based consumer economy. <br /><br />Will our hoards of unemployed suddenly go back to manufacturing? Nope. Have you noticed them programming us to resign ourselves to permanent structural unemployment? <br /><br />Floating currencies are a defective and dysfunctional method of managing international trade balances, especially when one country is the reserve currency and other countries artificially peg. Tariffs and protectionism are the best way, but are considered taboo by the international financial elite, as it would limit their power.Justinhttp://religionnewsblog.blogspot.comnoreply@blogger.com