Frequently lost in the whole currency devaluation debate is the fact that a weaker currency makes you poorer on the world stage.The U.S. can weaken the dollar to spur exports, but it then better be ready for things like $100 oil.
Parts of OPEC are reminding Americans of just as much, with the chairman of Libya’s National Oil Corp saying, “We would love to see $100 a barrel… We’re losing real income. Libya in particular would like to see a higher oil price,” according to Daily Finance.
Algeria’s oil minister has also said that $90 – $100 oil is ‘reasonable.’ We might comfort ourselves whining about ‘undervalued’ currencies in other countries such as China, but a lot of basic costs would rise if the dollar were far weaker than it is now.
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