Simple common sense; the government has two ways to rob you of long term capital gains: taxes and inflation. If both are expected to be low, then people will invest money for the long run (i.e. in new businesses) rather than put their money in short term speculation.
The dollar is artificially propped up from time to time, but it will generally balance with this anti-American globalist economy by falling in the long run. Or more at once, when repudiation and currency adjustment time comes. Have fun with the service/debt economy and selling off natural resources. Enjoy the slide.
Good grief! I agree with Cocaine Larry! The world is surely going to End.
apologeezes to the Beatles
To hear him getting nervous about the dollar, and by extrapolation a number of financial-asset classes valued in dollars, is a real novelty. It feels like it should be a portent of some sort -- like walls bleeding and dogs howling, and statues suddenly speaking to us in Aramaic.
That was Don Regan's policy, under Reagan's first term. Regan, as Treasury Secretary, cooperated with Paul Volcker at the Fed to stop inflation, which strengthened the dollar.
Regan's policy was undercut and abrogated by Bush intimate James A. Baker III, who'd been Reagan's chief of staff (always trying to paint Reagan into a corner, and get him to sign Bushy pig-at-the-trough stuff into law, and Reagan would just slip away and do something more, well, Reaganesque). Baker engineered the "job swap" with Regan, whereby Regan became chief of staff, and Baker went to Treasury and promptly took the dollar south, leading to the 1987 Crash when his soft-dollar initiative caused a falling-out with German central bankers, and the markets got wind of it.
Baker's premise was that U.S. businesses needed a weak dollar to help them export. His initiative dated from 1985 and, under Greenspan, Bernanke, and Treasury secretaries ever since, has carried to the present day. It represents the monetary orthodoxy of Bushonomics and Clintonomics, and its insider name is "repression": Simultaneous interest-rate holddown and deliberate inflation resulting in the slow destruction of debt (good or bad), and the stealthy depreciation of privately-held wealth in order to convert it to government purposes through inflationary overspending.
It's the exact same policy the Fed pursued in the 1950's and 1960's under "Regulation Q" that capped savers' passbook savings rate at 5%, and for the same purposes.