A Dollar Argument

An artificially instituted strong dollar is going to kill the current weak U.S. economy by making our businesses less competitive in the global market and will not last without a strongly performing economy to back it.

Of course the Europeans favor a stronger dollar, because that will benefit their now staggering economy, experiencing both low growth and inching-up inflation.

If you don't have a solid exporting base, then a weak currency is going to only hurt you, namely through inflating prices on imported goods. But the U.S. exporters have been showing strong moves, taking advantage of the low dollar value. So the dollar stays where it is will do a great good in turning the U.S. economy.

The weak dollar reflects the same weakness in the U.S. economic structures--having lost an imbalanced amount of businesses, dubbed as low-skilled, to developing countries, thanks to all the popular global trade agreements. Rate hikes by the Fed may lift the dollar value for the moment, but that action alone will not solve the dollar problem. A real. long-term support of the dollar can only com from a process of re-balancing the U.S. economic structures, which is simply to say that the U.S. can compete within the whole spectrum of the world economy--both on the low-end and the high-end. Let's all have a better reality check.