User 173390

Taxpayer Bailout Ideas Stabilize U.S. Dollar, Trip Gold

Very, very interesting. I have no background in economics, so couldn't understand some of the ideas you presented, but I liked reading the article nevertheless.

One thing I didn't get is why some Japanese think that a weak yen could benefit Japan. As I understand it, the US became the world's economic leader because the dollar was the strongest currency available, so other countries wanted to follow it's lead and tied their currencies to it. Wouldn't the Japanese want the kind of power for themselves?

Also, it doesn't seem like Saudi Arabia has many options beyond the dollar. The military strength of the US in the Middle East all but ensures that the US can do what it wants economically.

Hmmm... now that I think about it, maybe I just answered my own question. Are the Japanese weakening the yen to please the US? Maybe that's the real reason and all other explanations are a front.

Could someone versed in economics explain these things?