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<p>[QUOTE="medoraman, post: 1066637, member: 26302"]Well, if the politicians do not stop spending money like drunken sailors, it doesn't matter either way. If we can get our house in order, I say we are still the world's reserve currency and it should strengthen the dollar. Also do not forget a large reason for the dollars weakness right now is our extremely low interest rates. If our economy picks up the Fed will raise them, and that will strengthen the dollar. </p><p><br /></p><p>Arguments for a weaker dollar would be Europe forming a better EuroZone and Germany paying the bill. That would force more reserves into Euros and send our dollar lower. If China's problems need to be paid for, China could stop buying our bonds and sell them to pay for their own needs.</p><p><br /></p><p>So, anyone thinking that a weaker dollar is a foregone conclusion must be concluding the first arguments are false. That is fine, I am just not convinced that Europe will be overly successful in reforming their Euro, because I am not sure the German people are willing to pay that for other countries fiscal policies. Also, do not underestimate the affect of our near zero interest rates. As soon as we start raising them, the dollar will go up. </p><p><br /></p><p>My viewpoint.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1066637, member: 26302"]Well, if the politicians do not stop spending money like drunken sailors, it doesn't matter either way. If we can get our house in order, I say we are still the world's reserve currency and it should strengthen the dollar. Also do not forget a large reason for the dollars weakness right now is our extremely low interest rates. If our economy picks up the Fed will raise them, and that will strengthen the dollar. Arguments for a weaker dollar would be Europe forming a better EuroZone and Germany paying the bill. That would force more reserves into Euros and send our dollar lower. If China's problems need to be paid for, China could stop buying our bonds and sell them to pay for their own needs. So, anyone thinking that a weaker dollar is a foregone conclusion must be concluding the first arguments are false. That is fine, I am just not convinced that Europe will be overly successful in reforming their Euro, because I am not sure the German people are willing to pay that for other countries fiscal policies. Also, do not underestimate the affect of our near zero interest rates. As soon as we start raising them, the dollar will go up. My viewpoint.[/QUOTE]
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