I think it is appropriate to look at the value of the Dollar like you would look at a company stock price.
In just about every aspect one can think of the government and business are polar opposites, or should be if both are properly managed. This becomes especially true once we realize that the government has no need to “get” funding from anywhere.
If the country borrows money and spends it frivolously the value of the dollar will go down. If we spend it wisely the dollar will of up.
The things most think of as “funding” government have entirely different purposes and most things people see as “costs” to government are really our income, becoming assets in the private sector. Businesses that make a “profit” see rewards in stock demand which translates to more profit for shareholders. When government makes a profit it results in recessions and depressions, as history clearly shows when graphed together with correlation marked. When the government “spends frivolously” it hires more workers and injects more currency into the private sector. Oh, the horror!!!
If you can’t manage to recognize that you have to abandon most of what you “know” about good fiscal management when you think of the federal government you will remain in “business mode” and simply can’t make good decisions for a government that is constitutionally mandated to “create and spend” the nation’s currency for the public good and welfare. Its deficits are our assets, which is just the opposite of the corporation/shareholder relationship we constantly try to force on the government because we can’t purge our minds of what we “know” about good fiscal stewardship that we’ve been taught since we got our first allowance.
If we don’t make the investment to maintain our assets the value will go down. If other countries make better decision than we do the value will go down relative to those countries. If we appear to not know what we are doing the value will go down.
Just when I think there’s no hope, you show that you sporadically “get it”.
The dominating fundamentals will be stability, innovation and productivity. Rule of Law, Education, Freedom and Health.
YES!!! Just stay in that mode and tell your business mind to go to hell when thinking about our government spending. Those are the things we “MUST” fund with the power of the sovereign fiat currency if we are going to survive as a nation. It isn’t about “giving everyone a pony” as Hillary claims. It’s about giving the citizens the tools they will need to compete in the future. You can’t fill the same pocket you are reaching into for what you want to fill it with. We can’t keep thinking in this ignorant mode about the currency, taxes, and borrowing and ignoring sectoral balances. I guarantee that if we do find our collective sanity our biggest problem, like Japan, will be a dollar that is too strong.