Warpy
The falling dollar is also one of the causes of the rising stock market as foreign investment looks for bargains.
Short term, a sharply falling dollar is a disaster, making things ridiculously expensive while the population is suffering from high unemployment and the threat of the bottom falling out for those who still have jobs.
In the long term, the benefits are great as companies rebuild plants here to take advantage of a highly trained workforce that is the most productive in the world (when they have jobs).
That assumes, of course, that the government is allowed to rebuild our infrastructure to support this new economy.
Actually, I was just talking to our friend LC EFA about this very thing via PM. I had noticed that in Australia, the interest rates are starting to rise in order to head off inflation as their economy is coming out of this world-wide recession. While Australia is much more socialist that the USA, at least they do intelligent things like seal their borders from foreign workers coming in, I will give them that. But they are a smaller economy and pretty much gov't managed.
But more on topic, as the "world economy" starts to come out of this downturn, places like Australia and the countries in Europe and Asia will have to raise rates, the USA being the last to do so. Dear Leader is purposely devaluing the US dollar. He won't admit it, but that's exactly what he's doing.
Now here's the kicker. Remember when the primitives were complaining about "cheap labor conservatives?" Well, when the dollar is devalued, it does in fact entice corps to manufacture here because the cost is significantly less than overseas. All Dear Leader is doing is creating cheap labor. They try and go union like they want to go union, they'll once again price themselves right out of the market. These jobs are going to have to be cheap labor jobs.
So the warped primitive is correct in that a devalued dollar will invite a manufacturing base back to the USA. But, it'll only be as long as the labor remains cheap, otherwise they're outta here. So after all their complaining, it turns out they're cheering for Dear Leader to become a "cheap labor liberal" with the standard of living for the workforce being significantly less than it was. But it plays into their hands; now they'll get to offer more gov't services to help those people out.
Ever get the inclination liberals like economic dependance and slavery to the gov't? They really need a mommy to tuck them into bed at night. The big, bad world is awful scary to the left.
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