User 173429

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

For User 173390: An oversimplified explanation of how a weaker Yen is an advantage to Japan. The same argument works with any two currencies. The lower the Yen is relative to the Dollar the more that Americans can buy in Japanese goods - it costs them less dollars. So Americans buy more stuff and Japan gets more sales. The same argument applies today to the Dollar's value relative to the Euro. American manufacturers can sell more to Europeans because the goods are cheaper. And European tourists like coming to the U.S. because it's cheaper than before. So that can be looked at as "good for Americans." But, as is easy to see, it's a two-edged sword. Now it's more expensive for Americans to travel to Europe or to buy European-made goods. Looking at that side it's NOT "good for Americans."