I do not think the US is protecting the dollar. They have organized a quiet multi-year rout. We earn Euros and exchange it for 1.32 dollars after an exchange fee.
And everything costs more in Europe, too. I think the US allowed the dollar to deflate around 50% and are just keeping it right there. US officials seem to love the 1.34 exchange rate.
Is the plan to deflate away half that pension debt companies owe people and foreign debt? And since they have been able to keep interest rates low while the dollar has sunk to and stayed at 1.34, well the Fed guys are terribly clever.
