Drudge keeps hyping the falling dollar as a bad thing. Bernanke is doing a bad job because of the declining dollar. (Can't we stick to him doing a bad job by being in bed with the banks.) I have trouble seeing how a declining dollar is bad. I even googled it to see what the negative ramifications were and couldn't really find any besides inflation. Inflation would be good for a debt-strapped country as long as income increases with inflation. That is what I like the most. My debt and the American government's debt will be relatively less if the dollar is worth less. That would also make my student loans worth less. Deflation, on the other hand, would be a nightmare making all of our debt worth relatively more.
20 Reasons Why a Falling Dollar Isn’t Necessarily a Bad Thing
I think Drudge wants me to think, "Ooh, the dollar is falling. That's bad. And Obama is bad because he is in charge." But nobody has explained why it is bad. Now I understand it would be bad if I was planning on buying all my Christmas toys from China this year like I do every year, planning a vacation to Europe, or going out to buy some luxury goods from abroad. Otherwise, the falling dollar seems like a good thing.
Ray Suarez interviewed two economists in 2004 about the falling dollar. They thought it was a good thing. In this case, I will concur with the experts.
So should Obama should be praised that he is making the dollar decline? Or do we just want to have the highest priced currency because we like to be on top? Personally, we need jobs and the dollar falling might make those foreign jobs come back. It would make our labor relatively cheaper compared to other nations.
How a Falling Dollar Affects the US and the Global Economy
So in the end, we should celebrate the falling dollar. I really don't see a down side unless you are addicted to BMWs and oil. Oh, oil.
