Reply #2: This explains it right here [View All]

[jamesinca]

"Still, many analysts believe the administration has decided to voice support for a strong dollar to avoid rattling currency markets but to refrain from intervening to halt the dollar's fall since a weaker dollar will help lower the U.S. trade deficit by helping American exports."

He is hoping that the economy will pick up because it is living off of the table scraps of the world. Do as little as possible for the economy, do as little as possible to offend the corporations and make this a problem of the middle and lower class citizens. In an article that I saw here a few days back, Europeans and I believe some of the Asian countries have decided to not buy U.S. products unless there was no equivalent product out there. They are so disgusted with the U.S. as a country that they are informally boycotting U.S. products and the trade deficit is not shrinking. Which in turns drives the dollar down further and partially answers the question of why we need to work with other countries and why we need to care what they think and why we need to have things pass a global test.