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It's not really even that much of a problem, long term, and it might help out certain sectors of the U.S. economy, given that we produce a fair amount of our ow
by rossdavidh 6y ago
It's not really even that much of a problem, long term, and it might help out certain sectors of the U.S. economy, given that we produce a fair amount of our own raw materials so that we don't suffer as much from a weaker currency in buying raw inputs. It would make our exports more price competitive.
HOWEVER, the effects of a rapid, uncontrolled fall would be quite disruptive, and a lot of people who had their savings in $$ would now have no savings, and that could be very bad, especially since most of those with their savings in currency would be small time investors, retirees, etc. who cannot afford an advisor to help them diversify.
It should be mentioned that many nations have, at various times in the past, intentionally devalued their own currencies. We have at various times in the past accused Japan, China, Germany, etc. of intentionally preventing their currency from appreciating. But, major swings in short periods of time can be painful.