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Message:: [QUOTE="yakpoo, post: 820272, member: 18157"]I think the Administration came into office thinking the trade imbalance meant the dollar was too strong.  "Hmmm...print more dollars, devalue the dollars the "bad" rich people hold (same as a progressive tax), give the dollars to the disadvantaged (in exchange for votes, of course). The weak dollar balances the trade deficit, thus creating jobs! ...perfect plan!!" :high5: ...with one exception, the Chinese don't want to play along. Now the Administration is under pressure to defend the dollar, but there's an election coming up...what to do? what to do? <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie5" alt=":confused:" unselectable="on" unselectable="on" />  "Let's keep printing money to buy back our debt...keeping interest rates low until after the election. The GOP will likely win back a lot of seats in Congress. We'll just step back (in a Bi-Partisan spirit) and let them reduce spending and raise rates...the economy will slow, unemployment will go up, and they'll get the blame!" It's a WIN-WIN!! :high5: ...and we get re-elected in 2012! WooHoo!!! :hail: Question: What happens to PMs in that scenario?[/QUOTE]