I was just reading this long paper (linked at page) by the folks at PIMCO advocating ZIRP (Zero Interest Rate policy) in the US.. The idea is that Zero interest rates coupled with higher taxes and reduced government spending would somehow dissuade competing mercantilistic reserve banks/nations from subsidizing the US consumer and gaming their own currencies.. This would help to strengthen the long term US manufacturing base and real economy.. my favorite quote (and I've heard it before in Bill Gross' "Outlooks") was that "America needs more engineers and less Realtors" If this comes to pass it will significantly devalue...

Read the complete post at http://frankschilling.typepad.com/my_weblog/2007/09/macro-domain-wo.html