IMF chief warns dollar may suffer 'abrupt fall'

[Cindy S.]

http://www.breitbart.com/article.php?id=071022154152.yz1uni1v&show_article=1

[goinghome]

I don't know what to think about this article. So the dollar falls, inflation rises, but our exports go crazy so manufacturing goes up so jobs get more plentiful so paychecks get bigger so the economy straightens out and the dollars goes back up........ ???? I'm not an economist by any means. Can one of you smart people tell me what exactly could the fall of the dollar mean for the U.S. short term and long term???

Thanks!

[BondServant]

A falling dollar is great for our manufacturing sector.......if only we had a manufacturing sector.

[mustang]

Besides very little manufacturing base anymore, which could be rebuild if necc. we also import most of our oil and a weaker dollar means the price goes up. Without oil we come almost to a standstill.

[Beeferoni]

Can one of you smart people tell me what exactly could the fall of the dollar mean for the U.S. short term and long term???
Things we have to import will be more expensive to buy.

In other words, your gasoline prices will continue to go up and up.

[Bernardd]

I don't know what to think about this article. So the dollar falls, inflation rises, but our exports go crazy so manufacturing goes up so jobs get more plentiful so paychecks get bigger so the economy straightens out and the dollars goes back up........ ???? I'm not an economist by any means. Can one of you smart people tell me what exactly could the fall of the dollar mean for the U.S. short term and long term???
good point

[Beeferoni]

Inflation is especially bad for people who live on fixed incomes. Their incomes don't rise, but the cost of everything they have to buy does.

[ojibweindian]

A falling dollar is great for our manufacturing sector.......if only we had a manufacturing sector.


Actuall, we do. We export all sorts of weapon systems (i.e. F-15s, F-16s, small arms, artillery, ammo. Also, software and other technology (they are products than can be shipped).

[ZAGS]

Inflation is especially bad for people who live on fixed incomes. Their incomes don't rise, but the cost of everything they have to buy does.

Excellent point!!!

[BondServant]

Actuall, we do. We export all sorts of weapon systems (i.e. F-15s, F-16s, small arms, artillery, ammo. Also, software and other technology (they are products than can be shipped).

From: An Economist Rethinks Free Trade

By Paul Craig Roberts

...

"What does the high tech U.S. economy export? Are you ready for this? Hides and skins, metal ores and scrap, pulp and waste paper, tobacco and cigarettes, rice, cotton, coal, meat, wheat, gold, animal feeds, soybeans and corn."

...


http://www.vdare.com/roberts/trade2.htm


And sure, we sell lots of military hardware and high-tech software, but as other countries make leaps and bounds to develop their own high-tech manufacturing, we will steadily lose that as well.