The Decline of the U.S. Dollar?

[thefed]

http://www.americaneconomicalert.co...aneconomicalert.com/news_item.asp?NID=2601188

 

[lswswein]

Can you please clean up ur url? You double posted it

thanks
-h
p.s: Btw on that topic the recent post on Intl investing cover this same thing

 

[Gone4Good]

Couldn't find the actual article linked, but the site looks like a very partisan anti-free trade web site with such penetrating articles as this:

Q -- When Is an Economic Bubble Not a Bubble? A -- When Globalization Cheerleaders Wax Rhapsodic About Free Trade.

Even without finding the article, I'll take bets the thrust of it is that the dollar decline is evidence of a general decline of the US as an economic power do to unfair trade. :

I'll also take bets that the site is sponsored by any number of large unions whose strong suite, or interests, have never been in cogent economic analysis.

 

[Olav23]

Caught this guy on Charlie Rose, he was former fed vice chairman. He has flip flopped his position in the past few years about globalization and outsourcing.

Pain From Free Trade Spurs Second Thoughts

 

[Gone4Good]

Caught this guy on Charlie Rose, he was former fed vice chairman. He has flip flopped his position in the past few years about globalization and outsourcing.

Pain From Free Trade Spurs Second Thoughts

Alan Blinder is a widely respected and accomplished economist - which is why he isn't arguing that trade is bad or should be curtailed.

Mr. Blinder's answer is not protectionism, a word he utters with the contempt that Cold Warriors reserved for communism. Rather, Mr. Blinder still believes the principle British economist David Ricardo introduced 200 years ago: Nations prosper by focusing on things they do best -- their "comparative advantage" -- and trading with other nations with different strengths. He accepts the economic logic that U.S. trade with large low-wage countries like India and China will make all of them richer -- eventually. He acknowledges that trade can create jobs in the U.S. and bolster productivity growth.

But he says the harm done when some lose jobs and others get them will be far more painful and disruptive than trade advocates acknowledge. He wants government to do far more for displaced workers than the few months of retraining it offers today. He thinks the U.S. education system must be revamped so it prepares workers for jobs that can't easily go overseas, and is contemplating changes to the tax code that would reward companies that produce jobs that stay in the U.S.

Mr. Blinder doesn't argue that trade will make us richer, he believes it will. He argues that telecommunication advances open more jobs to international competition and that increased competition will be disruptive to many people. So be it. Competition is what forces innovation, improvement and efficiency - all of which ultimately makes us richer.

The real threat to our economic wellbeing is the policy response to these challenges. It's inevitable, whenever confronted with change, that the entrenched status quo hurry to build barricades to protect their interests. But the status quo can not be protected by walls, even though erected at enormous cost. Inside the barriers industry will grow weak and inefficient with complacency. That is not the path to a higher standard of living.

 

[Olav23]

Competition is what forces innovation, improvement and efficiency - all of which ultimately makes us richer.

I agree wholeheartedly, even though I am in one of the industries most affected by globalization, IT. My only question though, is, when you say 'us' who exactly do you mean? The distribution of wealth has grown quite concentrated between a select few.

 

[Gone4Good]

I agree wholeheartedly, even though I am in one of the industries most affected by globalization, IT. My only question though, is, when you say 'us' who exactly do you mean? The distribution of wealth has grown quite concentrated between a select few.

By "us" I mean those who embrace free market economies. There is a very high correlation between a country's economic freedom and the standard of living of its people.

Income inequality is not a problem as long as there is income mobility. For the vast majority of American families, from lower-middle class on up, there really is no problem with income mobility in the US.

 

[teejayevans]

Currently China ties it's currency to our's and we've been trying
to get them to change this. So will further decline cause China to
finally break the ties to the dollar?
The decline seems to be a good thing unless you want to travel
overseas. Makes our exports more affordable and improves
tourism. I assume there are other pros and cons but is it really a
bad thing?
TJ

 

[camberiu]

Now, that website that contains the true piglet sodomizers.