2. Weak $ is a plus in some respects – it reduces trade deficits, increases exports, that in turn causes rise in employment etc., Weak $ only hurts importers and people with large accounts of cash (or cash equivalents). Since most Americans have net negative cash (or cash equivalent) – being in net debt generally, inflation is actually not bad for them.
I don’t get this, I also don’t believe inflation works the same now as it did 30 years ago when most americans bough american goods. now if the dollar become weaker, we’re all going to need a lot more to buy a lot less. So the thing the Fed isn’t telling us is, it’s not inflation we are about to see, it’s called stagnation. The last time we saw stagnation was during the great depression. How what that have an effect on the market?
