Comments on: Poor performing US President = strong Canadian dollar? http://www.sowrey.org/2007/10/poor-performing-us-president-strong-canadian-dollar/ A miscellany of know-it-all-isms by Geoff Sowrey Fri, 06 Jan 2012 04:27:17 +0000 hourly 1 By: Geoff http://www.sowrey.org/2007/10/poor-performing-us-president-strong-canadian-dollar/#comment-3561 Geoff Tue, 30 Oct 2007 19:14:54 +0000 http://www.sowrey.org/2007/10/29/poor-performing-us-president-strong-canadian-dollar/#comment-3561 So I was just having a chat with my friend Joel, who pointed out that the dollar's slide/rise (depending on which one you're looking at) isn't a result of the Prez. It's <a href="http://www.gold-eagle.com/editorials_05/wibbelsman050206.html" rel="nofollow">US monetary policy</a>. Now, both of us freely admit that this is a little bit on the incomprehensible side (macroeconomics wasn't my strong subject). I think, though, this is the short version: The US has a massive debt (<a href="http://www.brillig.com/debt_clock/" rel="nofollow">$9,065,972,660,762.03</a> as of 30 Oct 2007 at 07:05:07 PM GMT). That debt is owned by other countries. The higher the value of the US dollar, the heavier that debt is with other countries. So -- apparently -- the goal is to devalue the US dollar so other countries aren't crushed by the unpaid debt. Or at least that seems to be the theory. But like I said, I'm no economist. So I was just having a chat with my friend Joel, who pointed out that the dollar’s slide/rise (depending on which one you’re looking at) isn’t a result of the Prez. It’s US monetary policy.

Now, both of us freely admit that this is a little bit on the incomprehensible side (macroeconomics wasn’t my strong subject). I think, though, this is the short version:

The US has a massive debt ($9,065,972,660,762.03 as of 30 Oct 2007 at 07:05:07 PM GMT). That debt is owned by other countries. The higher the value of the US dollar, the heavier that debt is with other countries. So — apparently — the goal is to devalue the US dollar so other countries aren’t crushed by the unpaid debt. Or at least that seems to be the theory.

But like I said, I’m no economist.

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