From today's WSJ article "Dollar's Slide Opens Doors to U.S. Companies":
"The slumping U.S. dollar is opening new sales opportunities abroad for American manufacturers... Many U.S. companies—from coal miners to a producer of tugboat clutches—are seeing stronger demand in Europe and Asia as the weak dollar makes U.S. goods cheaper there.
Economists say the dollar's swoon, which started in mid-September following a summer rally, will provide a modest boost for U.S. exports, but they caution that it means American consumers and businesses will pay more for imported goods and raw materials.
According to Larry Kantor, global head of research for Barclays Capital in New York, the weak dollar "is a net plus for the U.S. economy." In the absence of free-trade agreements, a weaker dollar "is one of the few ways you can get exports going," says Mr. Kantor, who thinks many U.S. energy, industrial and agricultural companies will benefit."
Update: From Bob Wright in the comments:
"So to ask the obvious question: How can anyone in the U.S. Congress be upset with the value of the yuan when the value of the U.S. dollar has been dropping for the last 10 years?
The corollary being: why don't those U.S. congressmen who favor "fair trade" not also favor increasing the value of the U.S. dollar? Why do they only rail against the Yuan while remaining silent about the clearly unfair value of the U.S. dollar?
The chart above clearly shows the U.S. is not playing on a level playing field and yet no U.S. politician seems to be concerned about how unfair this is. Is FAIRNESS a one-way street? Is a level playing field simply a club with which to beat your opponent with?"
According to Larry Kantor, global head of research for Barclays Capital in New York, the weak dollar "is a net plus for the U.S. economy." In the absence of free-trade agreements, a weaker dollar "is one of the few ways you can get exports going," says Mr. Kantor, who thinks many U.S. energy, industrial and agricultural companies will benefit."
Update: From Bob Wright in the comments:
"So to ask the obvious question: How can anyone in the U.S. Congress be upset with the value of the yuan when the value of the U.S. dollar has been dropping for the last 10 years?
The corollary being: why don't those U.S. congressmen who favor "fair trade" not also favor increasing the value of the U.S. dollar? Why do they only rail against the Yuan while remaining silent about the clearly unfair value of the U.S. dollar?
The chart above clearly shows the U.S. is not playing on a level playing field and yet no U.S. politician seems to be concerned about how unfair this is. Is FAIRNESS a one-way street? Is a level playing field simply a club with which to beat your opponent with?"
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