BobS
There are actually several pluses to a falling dollar:
1. Our exports are effectively cheaper to foreigners, theoretically helping our balance of trade in the long run. US exports are up substantially this year and last year.
2. Tourism here up from foreigners plus more Americans spending their tourist dollars in US vs. traveling overseas.
3. Ultimately, our real estate prices will be propped up by foreigners discovering what bargains we have. There is evidence this is already happening.
The main downside of the falling dollar is to our pride and prestige. It shows how we have mismanaged our affairs and are so into consumption and instant gratification instead of saving and self-control.
