Quote:
Originally Posted by Soriak  When Ron Paul says inflation (or currency devaluation) is 10%, he's talking about the exchange rate to some unnamed currency - maybe the Euro. The "cost" of a lower dollar there is entirely more expensive imports, which is countered by an increase in exports and ideally more tourism. |
Considering how we've been treating foreigners since the "War on Terror" (as you acknowledged) and the fact that other countries make better products than we do at a competitive price (China/Japan), what does the US export for a significant profit, offsetting the fact that our money is worth only 90% of what it used to be worth? The only thing that comes to mind, initially, is agricultural surplus (wheat, corn, etc.), but that alone can't
possibly account for a 7.8% currency devaluation.
I'm not trying to put forth a counterpoint, I am simply intrigued as to how we could cover the cost when we import nearly everything we use from other countries.
