[QUOTE=krazyderek]when interest rates are lower, there is less international investing (buying of us dollars), thus demand drops and there's to much supply, therefore price drops (US dollars are worth less) - international money and banking 1000
When interest rates are low (dollar) relative to another country the only thing that it means is that the money supply in that country is not tight and buying that currency (through a loan) to do what you want with it (buying a home, a new bike, or going to college, etc) cost less. This is a very good thing. Money is cheap to borrow currently. People borrow it as they wish and make it grow. International investing (through directly buying currency) doesn't influence interest rates greatly over the short/medium term, if it did US federal and many other countries policies would be dictated by meetings in Beijing and not the federal reserve of those countries. We're not there yet.