Replies to post #19034 on ***Precious Metals Investors Club***

[Toofuzzy]

Hi SilverEagle

I would think the government wants the value of the dollar to go down.

1) Eventual price inflation will make it cheaper to pay back debt.

2) If cost of labor is more competitive in the United States then more jobs will move back to the United States creating more tax revenue and a better balance of payments.

1 and 2 above are at some odds with each other. For one to work the other can't but the dollar rising in value is defiantly NOT the solution. That would just export more jobs and tax revenue.

Either our wages on average need to be lower or Chinese
and Indian wages need to rise. Either way goods will go up in price relative to our income.

Toofuzzy