I suppose it might. With corresponding effects on the cost of imported goods. Not to mention, our buying power should we vacation outside of our own borders.
>How exactly would an increase in the value of the dollar help US
>workers? The reason that corporations like a high US dollar is
>because they can purchase more assets and MOP overseas. Having the
>dollar high means they get more factories in China and more workers in
>Bangladesh for their dollar. Capitalists fear devaluation because the
>money they have will be worth less. Flip that around to those who
>don't have money but have debt and I don't see how it hurts them.
>
>The devaluation, according to bourgeois press, is due to the high debt
>of the US government. Meaning, we need to cut programs and balance
>the books in order to keep the currency from being debased (as Ryan
>put it the other day when he was attacking Bernake). I think
>capitalists and politicians understand both sides of the issue - they
>know that US manufacturing and the US debt would be helped by
>deflation of the dollars value, they also know that they are in a
>better position against global competitors when purchasing and
>investing overseas by a high dollar. Most importantly they know that
>they can use the issue to scare the public and muddy the waters over
>what the real issues are.
I wonder if something more fundamental is being glossed over. I asked, is this one of those "has to get worse before it can get better" things, where it keeps getting worse and never gets better?
Whom exactly was it, that first convincingly pronounced the US$ to be overvalued and in need of devaluation? How will the rest of us know when the correct valuation has been attained? How do we know that the US$ isn't already undervalued, for that matter.
Percy