diet coke for breakfast

Tuesday, November 09, 2004

Posted by Jake
Good For Us?

OK economics people. This article in the Economist posits that the Asian countries are over a barrel on this one. They have been buying US currency to keep the value of theirs down so long that they have opened themselves up for a big loss when the dollar loses value. They can either sell now and cause a dramatic drop in the value or buy more and put themselves at more risk.

My question is: Is there anything bad in this situation for us? A weak dollar will not only make it easier to pay off the deficit but also make it much easier for us to export goods. Am I missing something?


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