Ignorance Is Bliss

Excuse me sirs,

While I am a faithful reader, I am aghast at the lack of understanding of economics.  Do any of your writers or experts understand how money works?  Last week, a simpleton boldly predicted that the US dollar would rise Tuesday with the first shipment of Iraqi crude.  This didn't happen.  Let me make one thing clear: The dollar will remain weak until the US Federal Reserve decides to raise interest rates.

I will speak in general terms, so not to confuse you.  With every reduction of the interest rate, the supply of the US dollar increases.  By increasing the dollar supply, the international value of the currency is naturally reduced.  While this may be a bad thing for countries that rely on US imports, it is a good thing for the US.  A weaker dollar increases the import prices of all goods coming into the US, while decreasing the costs of the US exports.  This reduces the balance of trade deficit and encourages Americans to by domestically.  By purchasing domestic products, the US government is stimulating their own economy.   There are other countless reasons for the US actions and they are too numerous to detail.  Maybe the US is just sick and tired of propping up the European economies with a strong dollar while holding their economy back.  Talk to an expert of economics and I am sure they can explain it to you.  Lastly, Americans don't care about a weaker dollar. Why should anyone else.

Pravda.ru should spend more time educating their readers with the facts and not just blindly printing asinine opinions.

A concerned reader