atomic_fungus (atomic_fungus) wrote,

#1945: Counterintuitive economic news

Strengthening dollar may be bad for our economic recovery. Well, in fact, it only sounds counterintuitive.

The Euro is in trouble. Greece is broke; Portugal, Spain, and Ireland are running huge deficits. These countries face draconian budget cuts and debt reduction in order to hew to the EU debt guidelines. If they don't do this, the Euro itself is endangered.

Because the Euro is in trouble, its value is dropping. One side effect of this is that the dollar is buying more Euros.

This puts negative pressure on American exports, because it takes more Euros for europeans to buy American products. The article theorizes this means that our recovery is threatened by a strong dollar.

I think it is better for us, long-term, if the dollar is the most desirable currency in the world. If the dollar is too weak, no one will by American instruments of debt (such as treasury bonds) and then we're totally screwed. As it is, the mode we're in is totally unsustainable, but a strong dollar staves off the catastrophe.

* * *

Boortz says pretty much exactly what I said about muslims who don't like full-body scanners.

* * *

The science of global warming, as I have said time and again, is anything but "settled".

* * *

I'm not entirely certain which one is the FAIL:

epic fail pictures-

The one on the left is a SATIRE WIN, though.

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