tiredinvestor

How the Federal Government will Lose in 2009

to puttster:

You forget that when deflation hit Japan they were rich, had a great trade surplus and home savings ratio was very high.

US situation right now is very different: no savings, no trade surplus and it owe's money to everybody.

I agree that inlation is the only way out, that or pay debts with assets.

Artificial U.S. Dollar Rally Is Coming to an End

US has the benefit of a "central command" but monetary policies for California are not necessarily good for Iowa, as it happens in Europe. Euro is based on the german mark and it is very important to understand the importance of a strong currency for the germans who had hiperinflation in 20's.

I am not an economist but I do understand that the move of the FED is to devaluate the dollar "as much as necessary". I think that this may help the economy and prevent too much pain to workers in exchange of being all a bit (or a lot) poorer. Will the dollar be stronger when the economy recovers if it has been based precisely in a dollar devaluation? I don't thinks so.