Quote:
Originally posted by Yakk
James, I hope you are joking or speaking allegorically about "printing up money". Cash is money, but money is not cash, and printing money (aka, making cash) is a ridiculous way to increase the amount of money one has availiable.
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No, I am not joking, the US fed is printing up money, thus devaluing the currency.
Purposely.
It drives down the value of the dollar.
It makes sense in a way because the American dollar was too high previoulsy thus making imports very cheap and exports very expensive.
By lowering the dollar, it is hoped that this will make American made goods cheaper international and help reverse the US trade deficit.
But too much and you risk going the other way.