Quote:
Originally Posted by GregW / Oregon
Not an expert in this area, but got to think the HUGE national debt is devalueing the dollar. The US government is not a good model on how we should live our financial lives.
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BIG topic. Our debt / GDP isn't so bad. It really wouldn't matter if the economy were growing faster / real interest rates higher.
You're not incorrect in assessing that a large national debt,
ceteris paribus, is ONE factor affecting the dollar [USD] - but that's a more long-run effect.
Over the short-run it's more about relative interest rate spreads + speculative demand (e.g. going long the 'loonie' [Canadian $, CAD] because the trader likes the 'spread, the commodities' markets and trade balance.)
There's some good reasons why the USD could rally. One of which is that while the USD is cheap, our assets look cheap, and attract significant capital inflows that actually support the USD (sovereign wealth funds for e.g.)
Versus Asia? No, we will see a weaker USD.
I think I got waaayyyy OT!
