What is the Down-side of a Weak Dollar?

[Up2Late]

Other than:

1) Making future trips to Europe and Canada more expensive...

And

2) It make the Price of Oil look much worse than it really is...

And

3) It makes Imported goods more expensive (hint: we import almost everything now)...

What else?:shrug:

Note: I do know it live was better with a Strong Dollar, but I'd like more reasons to give the odd "A weak Dollar is a Good thing..." post replies, which drive me nuts!)

[hobbit709]

1. Consider that much of our food is imported

[no_hypocrisy]

2. Well, since we're importing almost everything from abroad (since we

don't manufacture or grow as much as we used to in this country), that means lots of stuff we buy from fruits and vegetables to media centers to cars and trucks will cost more.

[Initech]

3. Uh... downside? What's the upside?

:shrug:

[sinkingfeeling]

5. Upside: businesses can sell their stuff cheaper in foreign markets.

[Zywiec]

7. Several Advantages and Disadvantages

Advantages
- U.S. firms find it easier to sell goods in foreign markets.
- U.S. firms find less competitive pressure to keep prices low.
- More foreign tourists can afford to visit the U.S.
- U.S. capital markets become more attractive to foreign investors.

Disadvantages
- Consumers face higher prices on foreign products/services.
- Higher prices on foreign products contribute to higher cost-of-living.
- U.S. consumers find traveling abroad more costly.
- Harder for U.S. firms and investors to expand into foreign markets.

[Up2Late]

18. Just as I suspected, all the Advantages go to the Corporations and affluent tourists...

...and the Dis-advantages go to the lower and Middle-class Americans. No wonder those bastards at Fox "news" and CNBC are loving this.

[Warpy]

11. They could if we still made a whole lot to export

Most of them have followed cheap currencies already and offshored manufacturing.

[uppityperson]

4. I can't afford as much, can't pay you for your stuff so you can't afford as much, etc

[redqueen]

6. Discourages investment in our debt.

If we pass a tipping point, the dollar will crash... and then you'll see some real shit.

[TreasonousBastard]

10. That's the big problem...

as much as all us good little Communists here love to hate the capitalist pigs, fact is that investment is one of the necessary things to keep our system afloat.

And it's not just investment in debt and repos, it's all investment in the US-- if an investment here doesn't give a good return, the money will go somewhere where it does give a good return. And that somewhere is else will not be trading dollars, unless ot get rid of them.

[redqueen]

13. I'm as socialist as the next sane person.

That doesn't mean I have a burning desire to see the entire global economy thrown into chaos.

I think it's really sad that the media avoid talking about this very real threat... too many people seem not to know of the danger.

[Lone_Star_Dem]

12. Correct.

That's the worst thing that could come from the dollar falling too far.

[LSK]

17. which in turn forces higher interest rates to attrack investors

[pampango]

8. Our exports are cheaper, while our imports are more expensive,

with a weaker dollar so the trade deficit should decline. (People have complained that China has kept its currency artificially weak for many years in order to boost their exports and limit imports.)

[StrongBad]

9. Weak dollar could be beneficial

It would close the trading gap somewhat as our exports would increase. However, since we've become a service oriented economy and import many of our raw materials they become comparatively more expensive for us.

Also, if travelling abroad everything will cost more than what it would if the dollar were strong...

[truebrit71]

14. Imports cost more = higher prices for the comsumer

Exports get less = lower return on investment for goods.

A double-whammy.

Both ways we, the people, get screwed.

[Lone_Star_Dem]

15. The most immediate direct consumer concerns will be inflation

Everything we buy will be more expensive due to transportation and import cost rising.

[wiggs]

16. Another disadvantage: your cash money in cd or bank is worth less over time. Another advantage:

if you have a fixed loan, you'll be paying it back in devalued dollars (hoping your wages go up).