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Originally Posted by Cruisingdad
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I really dont think that a devaluation of the US dollar is a bad thing for the US. As a Canuck who is in the export business it is a bad thing for me but for you folks who want America to begin to make things again it is good news. For those of you who want to see debt reduced it is also good news. As the dollar falls so does the debt in real terms. You borrow at inflated values and repay in deflated dollars. For manufacturing they are more competitive. The balance of trade is also positively impacted as imports drop as they get more expensive. So all around its really not a bad thing. Yes energy get more expensive but that spurs the develoment of domestic sources and new replacement technologies.
In summary a high dollar policy will not serve to help America out of this problem while devaluation will help to a degree. About the only advantage to us up here in the GWN is its way cheaper to buy those Florida condos that are so very cheap right now and it was reported this week that 88% of Canadian buyers of Florida real estate are paying in cash.
Now if only you can rein in your Congress and state houses to reduce spending I think a medium term solution will present itself.