20 comments

• Comment Link Thursday, 14 March 2013 17:05 posted by Should governments use their OWN insider info to benefit the nation ?

  RE; Changing dollar policy leading to an earthquake.
  
  If the US acts strategically on its own self-generated
  "insider information" - the US could generate enormous
  gains by CLANDESTINELY shorting the dollar (or more likely
  using swaps and options) prior to publicly declaring
  a new weak dollar policy.
  
  This could generate TRILLIONS in revenue - paid by wealthy
  financial counterparties - all over the world - directly
  into the US treasury. It'd function as a much needed
  tax on the global financial sector, and perhaps remind
  them that currency speculation can be dangerous for
  them - not just for nations and their peoples.
  
  The Governments of the world DO NOT OWE
  financial speculators, bond traders and hedge funds
  a living. They have a moral duty to their people
  not to a small narrow industry with well funded interests.
  Countries morally have a right and a duty to use the
  "insider information" they generate through their
  own policies to improve revenues to their citizens
  and even to damage those financial opponents who may
  threatem their people's well being and their sovereignty.
  At best much of this industry - transfers wealth - in reality
  by INCREASING VOLATILITY AND RISK it may decrease
  it (like a defection against a public good/tragedy of
  the commons). It does not CREATE much new value.
  
  The US does not owe the financial industry arbitrage
  profits.

• Comment Link Wednesday, 13 March 2013 20:14 posted by NJ Seedas

  This debate has almost been a false choice. Who is to say that one has a choice in whether the U.S. dollar is strong or weak? When most of the rest of the world would like to own the U.S. dollar and devalue their own currency, how much can the U.S. Fed or Government actually do to NOT have a strong $?

• Comment Link Wednesday, 13 March 2013 19:59 posted by NJ Seedas

  This debate keeps confusing strong vs weak dollar with de/stable currency.
  
  A relevant question might be how much dollar printing would be needed to get & keep the U.S. dollar low when you compare to for example Japan Yen?

• Comment Link Wednesday, 13 March 2013 18:59 posted by Marni

  loved the opening line from John Donovan "get ready to get current about currency"

• Comment Link Tuesday, 12 March 2013 14:30 posted by A Public Citizen

  I'm wondering if the debate motion might argue FOR a WEAK dollar policy ? (Rather than AGAINST a strong dollar policy - which is ambiguous).
  
  Arguments FOR a WEAK DOLLAR POLICY might include :
  
  1) Keynesian approach to economic downturn.
  
  2) A CORRECTION of the persistent trade imbalances with
  our BRIC trading partners. (It's hard for US employees
  to compete if the cost of living here is *8* times as high.
  A correction might reflect the new realities of the BRICs'
  emergence and a restoration of Purchasing Power Parity).
  
  3) Are central banks and fiscal policy - particularly in the EU
  (and until recently in Japan) - still fighting the PREVIOUS WAR ?
  
  Is the ongoing commitment to Austerity Policies to fight
  the boogeyman of inflation at ANY cost, the EU's new
  Maginot Line?
  
  Inflation might in reality be far LESS of a threat, and FAR easier
  to control, and FAR less damaging to most citizens than
  PERSISTENT LOW REAL GROWTH RATES and
  underemployment / unemployment.
  
  ****Perhaps the goal of policy should be to MAXIMIZE REAL
  (inflation adjusted) GROWTH - independent of NOMINAL
  inflation rate. ****
  
  The last serious inflation in the US was a very brief period
  in the late 1970s - but we've had *decades* of slow growth that has
  seriously harmed our people and national competitiveness.
  
  (4) An asset price sinkhole and the resulting debt overhang could
  be readily corrected by a weaker dollar (and even a few years of inflation) given that the current housing illiquidity is due in large part to the excessive NOTIONAL values on mortgages relative to current housing valuations.)
  
  I hope the moderator will consider focusing the question on whether the US needs a WEAK dollar policy.

• Comment Link Wednesday, 06 March 2013 21:36 posted by Frank Klotz

  Not about this particular issue, but a comment about the phrasing of your debate motions:
  
  PLEASE eschew unnecessary negatives (or really, any negatives at all) in the statement of the motion. Voting against a motion that contains one (or worse, two) negatives makes it much more difficult to tell what you are really for/against.
  
  In the present instance, the statement SHOULD have been "America needs a strong dollar policy." Simple, declarative; and it's obvious what votes for or against mean. Whereas, with the existing statement containing "doesn't", voting against the motion means you are for a strong dollar, and vice versa. While I am sure most people can figure it out, it's really unnecessary to make everyone go through the extra mental gymnastics.
  
  Again, as much as possible, eschew negatives in the statement of the motion. I would really appreciate it.

• Comment Link Monday, 25 February 2013 17:36 posted by oscar_the_owch

  Quantitative easing can be viewed as either a negative or a positive in just the same way stimulous spending will be. And as a radical centrist I don't mind speaking of the viability of a position challenging the status quo rationale that the very, very wealthy and their profits gleaned from extractive industries are acceptable losses for the rest of the population that by some measure, really got screwed on the deals that Rockefeller et al got....railroads or airwaves..where's the value we measure currency with?
  Sometimes I figure quantitative easing and food stamps ameliorate an utterly unjust state of affairs as discreetly as possible...printing more more money to recognize the value of a greater number of valuable citizens. ..???Anyway I guess the question I think you'll be happy to be asked and perhaps happily answer:
  
  Isn't a strong or weak dollar dependent on how much dollar is in circulation?
  And the currency valuations, a reflection of the productivity generated by the needs of our people?
  Direct actions on livelihood rather than indirect actions, given the welfare state capitalist environs we obviously live in where banks are being bailed out and funded with free loans overnight from the f.o.m.c.????
  
  It's cutting tax breaks for big oil that got re-elected y'know...

• Comment Link Friday, 22 February 2013 18:33 posted by N.Craig

  It doesn't matter whether the dollar is strong or weak but changing from a strong dollar policy to a weak dollar could cause another economic earthquake.

• Comment Link Monday, 18 February 2013 10:05 posted by Herman Duenas

  Strong or weak is not the issue. Those in charge are supposed to ensure stability and trust in our nation's fiat currency. Stability and predictability is what allows the true economy to plan for the future and to bounce back.

• Comment Link Friday, 01 February 2013 08:59 posted by Peter K

  As a net importer nation, the US benefits far more from a strong currency than a weak one.