Will FED devalue dollar?? (financing, investment, government, cash)

[texdav]

Originally Posted by rruff

??? Any business selling goods or services to the US but produced elsewhere benefits from a strong US$.

A strong US$ is bad for *domestic* investment and production.

Only those that export which is not anywhere near what other leading nations depend on as to exports. Many foreign companies see a double benefit from producing in US and taking advantage of more flexible labor market.For consumer its benefit especially making foreign goods cheaper which we import a lot of being such a huge consumer economy. Its also means foreign materials are lower priced I dollars o conversions than in say the EU.

[rruff]

If the US wasn't running a large trade deficit, then a strong US$ would be fine. But they have for 35 years, and our domestic investment and wages have suffered greatly because of it.

[J.Thomas]

Originally Posted by rruff

If the US wasn't running a large trade deficit, then a strong US$ would be fine. But they have for 35 years, and our domestic investment and wages have suffered greatly because of it.

I always thought US had great potential to be a great manufacturing nation and exporter.

Very interesting to see other way is preferred

[Major Barbara]

Originally Posted by rruff

If the US wasn't running a large trade deficit, then a strong US$ would be fine. But they have for 35 years, and our domestic investment and wages have suffered greatly because of it.

The dollars spent on the trade deficit come right back to us in export sales and capital flows. If you only look at one side of the books, they will always be out of balance.

[Major Barbara]

Originally Posted by J.Thomas

I always thought US had great potential to be a great manufacturing nation and exporter. Very interesting to see other way is preferred.

Once your alarm clock goes off, wake up and realize that the US is the world's second largest exporter and second largest manufacturer.

[J.Thomas]

Originally Posted by Major Barbara

Once your alarm clock goes off, wake up and realize that the US is the world's second largest exporter and second largest manufacturer.

Way lower than potential.

Tiny Germans are almost doing the same export with 80 million people.

And land

Has to be number one at both.

[Major Barbara]

Potential? Potentially, the mothership could land and scoop up any one of us at any moment!

[FIREin2016]

Banks will make a TOM of money if they raise interest rates. The FED is just a bank, with it's constituency being other banks.

If rates rise, many ARMs and HELOCs will reset higher. The dollar will be stronger, helping out the other countries across the globe with increased imports to the USA, tourism to other countries, and manufacturing shifting to the rest of the world. That helps the USA help the world, which is the new world order thing.

Rates will rise. The effect on the USA economy will be good for the wealthy, less good for the less-wealthy.

[Major Barbara]

Originally Posted by FIREin2016

Banks will make a TOM of money if they raise interest rates.

You've figured this out, and they haven't? What do you think it is that's holding them back?

[rruff]

Originally Posted by Major Barbara

The dollars spent on the trade deficit come right back to us in export sales and capital flows. If you only look at one side of the books, they will always be out of balance.

Is "capital flows" a euphemism for debt? Because that is what balances the books.