xsuddensam

The US Dollar Elevator is Going Up!

"Duh! Over time, businesses only spend the net money they get from consumers and consumers only spend the net money they get from business. It really cannot be that consumers spend more than businesses. Just like supply must equal demand, production and consumption are two sides of the same coin."

In this simplistic and flawed analysis of yours, how does borrowed money by business and consumers figure into your conclusion? Does it mean that consumers and business borrow equally? I don't think so.

"It is a good thing for the government to run a deficit when the economy is slow."

There is no good time for the government to run a deficit. What would you rather have, a well run and fiscally responsible government or one that is running a $600B deficit? It is deficit spending by both government and consumers that is bringing down the dollar.

The dollar is in big trouble. Private and public debt and monetary inflation are exploding. Unemployment is rising. The trade inbalance is killing us. Where's the good news to support the dollar? There isn't any.

Duuuuuuuuuhhhh.