Richard Benson provides some advice to foreign governments faced with the choice of allowing their currency to rise against the dollar or importing our inflation:
Responsible central banks that want to help the United States establish responsible budget, trade and interest rate policies, should “buy gold not dollars” to make their currencies “look weak”. Moreover, there are any number of things that foreign central banks and governments can buy with new local currency that will help hold their currencies down, give the country something of value, and stop enabling the Federal Reserve to run a monetary policy fit for a drunken sailor. Countries should “manage their currencies down against the dollar” by buying gold and silver, oil and more oil, tin, copper, zinc, etc. Countries with sounder monetary and economic policies, such as England, Australia, and Europe, are major oil importers. Now would be a wonderful time to fight back against the U.S. currency war by printing up some money to fund a strategic oil reserve.
