I'm not real sure about the consequences of a lower dollar. Surely it will make US anufactured goods more valuable and might increase that type of employment. It might require the US to undergo some strict budget restrictions by the guvment.
Europe has a slight advantage geographically to Asia than the US does, timezone wise. It will be interesting to see how it all plays out. I would think that most of the investments being talked about here are in money and because of the difference in interest rates that's as big of an issue as any.
I do know however that the europeans are none to happy with the euro experiment in that it increased costs by about 25% immediately. It appears that will continue to be a problem for them.
On matters of economics I many times search out Thomas Sowell as he puts things in terms I can understand. On this one he seems to be punting however. I'll look a little deeper for his opinions.
Quote:
John Hawkins: Do you think the US would be better off having a strong dollar, a weak dollar, or one just as good as the other? Why so?
Thomas Sowell: Whether a currency is "strong" or "weak" tells very little by itself. These are among the many emotional-laden words used in discussing of international transactions which obscure more than they reveal.
|