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And they are today and as we -- that kind of wider discussion however John tending from forms -- and I would disease is the half.
But economic recovery may actually include believe it or not deep -- should he wrote about this.
At a stronger more stable dollar so Fred Lang is still weapons and -- -- -- this discussion as well.
-- did you think peace -- what I want to have -- talk about this.
I don't say this often I don't believe I've said this -- biggest city make the case for deflation most of time it's.
People say oh my goodness some from scared I want prices to fall all that make the case for deflation John.
Well it's really very simple there are no companies and there are no jobs without investment investors are -- a logically buying future dollar income streams when they invest in the companies in the future.
We've had four years of it really twelve years of dollar devaluation.
Which is told investors.
But if you're foolish enough to commit capital -- -- any returns you get will come back to valued.
And -- deflation are really an arrest of inflation is a magnet for investment come back in its telling investors.
If you commit capital to new companies we will not do value those returns and that's why I'm such an advocate for it.
All right how -- -- Fred's thoughts on the local back and forth a little bit on it that there one thing John it brings up -- I think it's worth noting just to follow up on that this idea that we.
In the United States somehow support this quote strong dollar policy has been known for years going back to the Robert Rubin the treasury.
Administration of what is Treasury Secretary in the Clinton years have been known to be nonsense and everybody looked us all strong dollar strong dollar and John Snow came and everybody is Treasury Secretary.
At the same time.
-- we were by -- -- was a weak dollar policy thinking that was better for our economy going forward for number of reasons so where do you stand on this debates kind of interest and to bring it up again Fred where you agree with Johnny in the opposite side.
Well you know I had just put it this way but this that there's a yes and no here so that the yes here it is it is that.
You know it's a strong dollar -- tracks flows into our country which supports our deficit spending.
Economy and -- way that's not gonna go away we may end up with periods of a balanced budget but on balance I think we have a tremendous structural problem in this country which is the aging baby boomers.
Our sap are going to be sapping.
Right of the future returns.
Of the economy so that's a problem and we just have to address that and that's a problem we keep kicking down the road.
The other problem with this big that's the good news -- a stronger all the bad -- -- a strong dollar is part of our GDP has exports and a strong dollar to not help our exports that's -- there's really two sides to the argument and I think again I wanna get back to something I said earlier.
Environment here globally by the way you know favors us having a strong dollar -- we -- to attract dollars to.
To you know that look at us in this United States is a storehouse of value right now and has been.
There are foreigners coming in this country and buying residential real estate front -- -- they are we've -- -- our commercial real estate.
Law absolutely that now -- -- kind of wrap this up in some way because Fred brings up the argument everybody says all time exports weak dollar we needed -- month.
Well I just don't think that that's is credible argument let's look throughout the last forty years of floating money in in the seventies in the two -- we do value money.
We had flat markets and stagnant economies in the eighty's and ninety's when the dollar was rising.
And much stronger we had rising stock markets and very strong economies.
Poor countries to value their money rich countries tend to protected and -- if you look throughout history.
It's the Argentina -- in Mexico's in the world that are -- for devaluing.
It's the US is an -- a hundred years ago the protect their currency that were rich that the record's pretty clear.
Got a couple things got to move on to but does a -- discusses start -- -- there's so dollar.
Today 130 for the bureau -- and John thanks a lot appreciate both you guys coming on thank you presently beer -- -- I can't be happening.
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