The Weakening Dollar

[Alaska Darin]

Paul Craig Roberts gives his spin

[GG]

Trite and devoid of true analysis of macroeconomic reality that exists today. Think of the US dollar as crack that the rest of the world is addicted to. While they go to their economic AA meetings to swear off the dollar, they are too feeble to kick the habit. We are the dealer that everyone hates, but like clockwork, they're back at sundown.

 

When you see economic reform in Europe, when China opens up its financial system, when Japan finally decides to dump bad companies, then we can start worrying about the downside of a weak dollar.

[HopsGuy]

I read this and then passed it on to my buddy. Here's his response:

 

Somebody in the administration has pissed this guy off, because he's gone from being a regular contributor to IBD and other such publications to openly embracing liberal and protectionist causes. Strange to say the least.

 

I don't know the end result, but it's clear we need to raise domestic savings. Looking over time, the tax code certainly dictates personal, corporate, and government behavior, maybe not right away but the correlation is remarkable. Anything that can give incentives to saving would help us in the long term.

There are huge issues to resolve, and luckily Bush is a guy who likes to tackle problems so much he goes out and looks for things to tackle. Passing the buck is

the smartest political move, and creats fewer short-term dislocations, but certainly don't demonstrate leadership.

 

Gotta raise domestic saving ASAP...

 

Then we discussed why the Bills couldn't come up with $13M over 3 years for Big Pat.

[Alaska Darin]

I read this and then passed it on to my buddy.  Here's his response:

 

Somebody in the administration has pissed this guy off, because he's gone from being a regular contributor to IBD and other such publications to openly embracing liberal and protectionist causes. Strange to say the least.

262596[/snapback]

He has certainly taken quite a turn lately. The guy is a former Marine.

[Alaska Darin]

Trite and devoid of true analysis of macroeconomic reality that exists today.  Think of the US dollar as crack that the rest of the world is addicted to.  While they go to their economic AA meetings to swear off the dollar, they are too feeble to kick the habit.  We are the dealer that everyone hates, but like clockwork, they're back at sundown.

 

When you see economic reform in Europe, when China opens up its financial system, when Japan finally decides to dump bad companies, then we can start worrying about the downside of a weak dollar.

261966[/snapback]

I often wonder, though, how long these poor policies can be ignored. One day the piper is going to show up with hat in hand.

[GG]

I often wonder, though, how long these poor policies can be ignored.  One day the piper is going to show up with hat in hand.

262634[/snapback]

 

I am not concerned about the policies, as US has always adapted fairly quickly to economic changes. The big worry though is that we will not produce the best workers for the new economy.

 

PCB takes a shot at HB-1 visas, without acknowledging the huge benefit the US economy gets from the influx of foreigners. Anecdotal evidence shows that 2/3 of winners of the Wall Street Journal high school prizes for science & math are either foreign born or first generation America kids. The big trouble for America will come when promising foreign scientists & engineers decide not to come to the US to invent things.

 

Keep fighting for those lower scientific standards in high school folks.

[nobody]

The dollar keeps getting weaker and the trade deficit keeps getting larger. Not the best combo deal.

[Typical TBD Guy]

I am not concerned about the policies, as US has always adapted fairly quickly to economic changes.  The big worry though is that we will not produce the best workers for the new economy.

 

PCB takes a shot at HB-1 visas, without acknowledging the huge benefit the US economy gets from the influx of foreigners.  Anecdotal evidence shows that 2/3 of winners of the Wall Street Journal high school prizes for science & math are either foreign born or first generation America kids.  The big trouble for America will come when promising foreign scientists & engineers decide not to come to the US to invent things. 

 

Keep fighting for those lower scientific standards in high school folks.

263099[/snapback]

 

That's a valid argument.

 

Americans - as a general rule of thumb - just don't do math/science. Those who want to pursue these fields know that they will be harassed on a semi-regular basis and labeled a "nerd" throughout their educational lives, beginning in early grade school and continuing throughout college and even beyond. In America, everyone wants to be a lawyer and no one wants to be an engineer. That used to be ok, though, since we imported the brainpower overseas, and this brainpower would often decide to become US citizens after seeing the higher quality of life in this country.

 

But no, that trend is now coming to an end, and the ramifications will be a United States that will fall behind technologically, i.e. falling behind economically/militarily as well. I'm not excited to see the ramifications of this policy in a few more decades, unless we all have no problem learning Chinese...