U.S. Dollar Gains on Euro

Story dated 04 February 2005

Well, this could be good. On the one hand, a weak dollar is good for our export markets. Bad for Europe and Japan. On the other hand, a weak dollar keeps investors from buying the U.S. dollar and U.S. Treasury bonds. Also, oil is traded in dollars worldwide and many countries keep a supply of U.S. dollars as their currency reserve the way we used to keep gold. If the dollar dropped low enough, oil could begin to be traded in Euros, and all those countries might want to divest themselves of their dollar reserves. What do you suppose that would do to our economy? Is the potential cost of a weak dollar worth a gain in our export market? I'm not sure, but I am also not an economist. I do know one thing. The FairTax has the potential to solve all of our economic problems. Want to increase our export market? Want domestic job growth? Want the increased value of the dollar worldwide that these conditions would effect? Want to see the U.S. economic supremacy continue for at least another century? I believe the FairTax could accomplish this. It is a national retail sales tax. In other words, it is a nationwide 19%-23% tax on finished retail products. There would be no tax on production, and no corporate/business taxes (both of these result in higher prices for the consumer). With the FairTax, the United States would become the largest tax shelter in the entire world, and that would put an end to all of our current economic problems. If you are worried about the continued growth and stability of our economy, I highly recommend that you write your Congress men and women and ask them to support the FairTax bill (H.R.25, S. 25).
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posted by The Sovereign Editor | 7:04 PM

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