Friday, November 11, 2011

Should US weakened the US$ ? Instead of punishing others that do.

. Nobody wants an expensive currency in today's globalized world
. It means your foreign Buyers of your hime products & services becomes more undesirable
. And costly
. So rather have more supply of money risking inflation than have expensive money.
. These all comes at a costs.
. It means selling your own currency. Print more and sell more
. Or buy more of somebody else.
. Both spells trouble.
. Safe haven currency like Swiss and Yen are basically targeted vs US$
. Swiss and Japanese govt have intervened.
. So should US intervened as well.
. They could if they can....but it probably makes matter worst.


http://www.ft.com/intl/cms/s/2/d761be04-0a3a-11e1-92b5-00144feabdc0.html#axzz1dPTtOOzI

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