If the dollar were to continue falling, it could have wide ramifications:"One giant WalMart?" Yuck! Roll back the corporate welfare grants and payoffs to the rich, and the problem is nearly solved.
# It could imperil the economy next year because Fed Chairman Ben Bernanke might have to defend the currency with higher interest rates.
# A lower-valued dollar makes imports more expensive, possibly ratcheting up the inflation rate. But it could also stimulate U.S. exports, thus providing more jobs.
# This summer, Americans traveling abroad will feel as if everything is expensive. However, foreigners coming to America will feel as if the country is one giant Wal-Mart.
One way to keep foreign investors interested in U.S. dollars is to raise interest rates, says Chan. But the risk, he says, is that "we slow down to the point where it may even become a recession."
The large U.S. budget deficit doesn't help, says Bryson. "The U.S. is spending more than it produces, and to the extent government is spending more, it becomes a compounding factor," says Bryson.
Friday, May 05, 2006
Fallout From A Falling Dollar, Currency's Decline Could Mean Higher Interest Rates, Higher Prices For Imports - CBS News
Fallout From A Falling Dollar, Currency's Decline Could Mean Higher Interest Rates, Higher Prices For Imports - CBS News:
- ► 2012 (26)
- ► 2011 (92)
- ► 2010 (20)
- ► 2009 (8)
- ► 2008 (78)
- ► 2007 (328)
04/30 - 05/07
- Fallout From A Falling Dollar, Currency's Decline ...
- Libby Denied Access To CIA Leak Data, Federal Judg...
- Stung by Election Losses, Blair Reshuffles Cabinet...
- Cheney Urges Energy Export Routes That Bypass Russ...
- Another One Leaves
- Digby Sums It Up
- Think Progress » What Iraqis Think: Mission Botche...
- Bush Bungle Lengthens the "Long War"
- America's Trend to Theocracy
- To Be Honest, Uh, We Might Be Lying
- ▼ 04/30 - 05/07 (11)
- ► 2005 (385)
- ► 2003 (7)