Ask an expert: Is a weak dollar good for US?

MSN Money's Anthony Mirhaydari explains how a cheap currency might be necessary to help the economy recover.

By MSN Money Partner Dec 19, 2012 10:59AM
Contrary to what some people might believe, a weak dollar, not a strong one, can help the economy.

In this video, MSN Money's Anthony Mirhaydari explains why a cheap greenback could actually help the U.S. recover and how to invest in such an environment.
Mirhaydari looks at the growth drivers for the U.S. economy. The problem is that one growth driver, the government, currently can't spend more because of its debt load -- if anything, it has to spend less.

Steve Allen Brand X Getty ImagesAnother major growth driver is U.S. consumers, who are also tapped out.

What's left, then? International consumers, who are hungry for U.S-made products, as long as they're cheap enough. That's where a weak greenback comes to the aid of American exporters.

For investors, a weak dollar means they have to concentrate on commodities, because they are affected by the dollar value and on foreign stocks.

The discussion about the dollar and its effects on the economy and current trading environment continues over at MSN Money's Facebook community
20Comments
Dec 20, 2012 9:54AM
Dec 20, 2012 9:21AM
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The logic here is actually not bad if your an investor. But to keep the US dollar low is a costly move for non investors and the security of the USA. It's like we are selling ourselves out for the measly growth that will come from this to countries who hate us and would like to bury us. Bad move. If you notice monetary policy was a nonfactor in the campaign for President. Its like the whole monetary policy is scripted and it does not matter who is in the White House.

Dec 20, 2012 7:43AM
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The weaker American Dollar SHOULD have thwarted the onslaught of imported goods because the logistics cost added to manufacturing cost should have made the retail item price too high. That was circumvented by massive job terminations, closure of plants and indigenous manufacturing, and the building of giant mega-stores that wiped out all small businesses. These things don't just happen, they are planned, executed and managed. We need a list of those operatives and a giant meat grinder for prosecuting them into baloney. THIS NATION WILL NOT SUCCUMB TO NEW WORLD ORDER.  
Dec 20, 2012 2:22AM
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Changing the value of the dollar is more 'hocus-pocus.'   You can't scam your way to prosperity.  It might seem to work for a while, but what the US needs is SOUND money, that is, money backed by gold and silver.  The FED needs to GO, and its principles JAILED.  THAT is the solution.  Not a guaranteed solution, but one that needs to be taken.
Dec 20, 2012 2:00AM
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Competitive monetary debasement is a "beggar thy neighbor" operation, a zero-sum game between nations, that also makes beggars of the responsible people who have saved their money. Ravaging the "ants" for the sake of the "grasshoppers" in your own country is hardly building a good future.
Dec 20, 2012 12:00AM
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how is this writer even qualified to right about such things, he clearly has no idea what he's talking about, why anthony must you display such incompetence, nobody wants to hear your 3rd world garbage, please stop writing, go back to school and pay attention next time
Dec 19, 2012 11:47PM
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Anthony must have been smokin' crack when he was a student....maybe he still is!
Dec 19, 2012 10:48PM
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WOW! MSN REALLY PUSHING THE OBAMA PROPAGANDA! WHATEVER HE DOES IS GOOD AND RIGHT FOR THE COUNTRY!

I GUESS LIKE PELOSI SAID UNEMPLOYMENT AND WELFARE AND FOODSTAMPS ARE GOOD FOR THE ECONOMY! JOKE!

I GUESS THE REGULATIONS ON CHEAP ENERGY WERE GOOD FOR HIGH GAS ENERGY AND FOOD PRICES? YEAH I LOVE

PAYING MORE SO OBAMA CAN PAYOFF HIS FRIENDS AND FAMILY AND BIG UNIONS FOR EXPENSIVE FAILED GREEN ENERGY!

 

Dec 19, 2012 10:22PM
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Beginning of public indoctrination of inflating our way out of debt?  Retired on a limited income, I know inflation will be just great for me.  I'm already getting .5% on my savings.  I figure these types of solutions are made by people who give a sh...  less about the masses. 

Dec 19, 2012 10:00PM
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As a high schooler in the 60's I remember the picture of a woman in Argentina with a wheelborrow full of paper money.  The caption,  "woman going shopping in inflation riddled economy".  So Anthony is this what you have in mind?  So when you talk about Americans making stuff for the rest of the world. Where are the factories to make the stuff.  Where are the trained employees to design build and sell this imaginary stuff?  And who are these imaginary rich buyers?  You see Anthony we are very rapidly becoming an illiterate state and an illiterate economy.  You find the illiterate economy exploding here in America now.  This is an underground person to person exchange with no tax, no record, and no guarantee.  There has never been a productive improvement with any underground economy.  It is hand to mouth day to day with no investment in the future.  It is called survival mode.  And where do you find survival mode? Countries that have been over run by socialists who always claim to defend and be loyal to the poor yet the poor only suffer more and the rich who support the socialists politicians out of fear live the milk and honey lifestyle.  We are getting here much too rapidly.  JMHO

Dec 19, 2012 9:50PM
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Theidea that a weak dollar is good for export sales presupposes that we do not need to import any raw materials to produce the products we export. What eactly is the rest othe world hungry for that we can make in the US with out using any imported raw materials?
Dec 19, 2012 9:03PM
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With a weaker dollar, energy prices increase, real inflation rises and increased cost of manufacturing and transportation is another result. Currency prices are a two edged sword.
Dec 19, 2012 12:13PM
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A weak dollar is NEVER good.  A Strong, KING dollar is good.   When you lessen the value of a dollar you are LOWERING the standard of living of the USA and raising the rest of the world.

The French laugh everytime we lower the value of the dollar in relation to the Euro.  That means the French worker gets paid more, and the US worker gets paid LESS.  The Frenchman can buy more of our goods and we can buy less of his.  In effect the Frenchman can buy more with his hour worked, than we can.

An inflated dollar is only good for those deeply in debt.  The less the value of the dollar the easier it is to pay back a loan.

A strong dollar is good for the USA!
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