Alright… so I’ve managed to talk myself into a circle and i need you guys to straighten me out. 1. we’re a service economy 2. we’ve had a high labor cost relative to other countries 3. we import more than we export 4. the dollar is falling On the bright side: Won’t the cost of labor (compared to other countries) go down if the dollar is falling? Won’t that make our goods/services look more attractive to other countries? thereby, increasing our exports and decreasing our imports? On the not so bright side: since we are now importing more than we export, and the dollar is down, that will increase inflation because the cost of the majority of things will go up… right? generally speaking, (excessive) inflation doesn’t have a good impact on the economy, for a lot of reasons that i assume i don’t need to get into cause we all know them. ie brazil…
Your on the bright side comments have panned. I here several commentators credit our revised 2.8% Q2 growth in part to exports driven by a cheap dollar.
dollar is falling?. back here in india, the indian rupee has tanked 25% from its peak earlier this year vs the USD. With the so called flight to safety,dollars are being pulled out of emerging markets back into US/treasuries. dollar is cheap,probably compared to commodities,however.
Does that mean I should go on vacation to India? I would really enjoy seeing the Taj Mahal. One of those things on my “To do before I die” list.
Taj Mahal is definitely worth seeing.
Definitely see the Taj - and bank a few days for (relatively) adjacent sights; once you see the Agra Fort, Fatehpur Sikri, Akbar’s Tomb, etc etc, they provide a superb context for the period, philosophy, governance etc that reigned during the period the Taj was built. Of course, it helps to have a good guide. My dad wrote his masters’ thesis on historical Indian architecture, so the added depth of explanations really enhanced the experience. And avoid the roadside water. ouch.