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Strong or weak dollar

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posted on Jan, 24 2018 @ 01:28 PM
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Is a strong dollar good for the American worker? If the dollar is really strong will we have more jobs or less jobs?

I always here how a weak dollar is good for businesses but is it good for the American worker?




posted on Jan, 24 2018 @ 01:34 PM
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a reply to: dfnj2015

A weak dollar means imports will be more expensive and therefore we are more likely to buy American, thus driving the economy. A strong dollar means we will have more buying power for international goods but our goods will be more expensive abroad and therefore less likely to be consumed.



posted on Jan, 24 2018 @ 01:34 PM
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a reply to: dfnj2015

A weak dollar is good for exports but bad for imports , the dollar is weak at the moment so good for business but bad for that bottle of Scotch you want to buy.



posted on Jan, 24 2018 @ 01:42 PM
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Weak dollar should mean inflation which is bad for anyone who doesn't own much in the way of assets.



posted on Jan, 24 2018 @ 02:27 PM
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It's best to have both.

So, we cycle through the extremes, from strong to weak, and back.

The problem is that you need to buy things from abroad, either as end products or as inputs to the manufacturing done at home. So, either strong or weak will hurt one or the other end of manufacturing.

By cycling though the extremes, you get to build up and tear down, and if timed right, you can get the best of both worlds.

You want to be tearing down your factories that are outdated, and it helps to have a strong dollar, when you want to encourage those factories to close. Then, as new industries emerge, requiring new factories, you want to lower the dollar, so that you can facilitate the building up of the new manufacturing industries.

Similarly, you want to buy oil, when the dollar is strong, and stock it up in reserves, so when the dollar becomes weak, you can draw on your own oil and reserves to reduce your energy costs.

So, the ideal situation is to have a cyclical dollar.

A dollar that is too stable, would cause a permanent fragmentation in the economies of the world, where each nation would become "specialized" in producing a few things, but never produce other things, and old factories would be harder to close, so "renewal" would take alot longer to occur.



posted on Jan, 24 2018 @ 05:32 PM
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doesnt matter as # from u.s will still be overpriced rubbish .



posted on Jan, 24 2018 @ 06:36 PM
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a reply to: dfnj2015


Trump and the Munchkins want a weak dollar, but the truth is it is collapsing as we speak. They have got no choice, buying overseas bonds, creates more dollars in the economy, which weakens the dollar. These dollars head for the share market which is bubbling close to where the pressure release valve is tripped . It's always in the timing knowing when to get out, and converting your assets into Gold or Silver.




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