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Buzz and Banter


To further the point I made a few days ago about the disingenuousness of financial reporting, I just heard an "analyst" on CNBC say for the umpteenth time, "a fall in the dollar is good as long as it is gradual".

Can someone please explain to me why this is the case? If the dollar falls against other currencies, it will have an effect, period. Depending on future circumstances, that will either have a good effect or a bad effect (you know my take on things) on the U.S. economy. But the rate at which it falls has no bearing.

Could it be that we are being conditioned for a fall in the dollar? The "powers that be" are telling us that as long as it does not fall quickly, which I doubt any of the central banks working in concert will allow to happen, investors should continue to hold their assets in dollars that are depreciating (so the real value of those assets continues to decline) and consumers should not worry about paying more and more for imports.

I marvel at the contradiction about what I read and hear on economic concerns from the media. The Financial Times this morning reported that the dollar is falling because of the U.S. trade deficit and that fall is likely to continue even if economic activity in the U.S. picks up. The U.S. media certainly has the right to its take on things, but it also has the obligation to report both sides to a story. Otherwise it shouldn't be called the news.

Be careful about what you read and hear. It is getting thick out there.
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