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Old 09-21-2007, 01:18 PM  
Pipecrew
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Quote:
Originally Posted by Shok View Post
The dollar is weak because interest rates are low.

This is a good thing because it regenerates domestic exports.
More business comes from outside the states.

The down side.......so it costs a little more to travel to europe, big deal.

When the feds raise rates, the dollar will strengthen.
This happens a lot over time, it's a continual process.

If say the dollar stays weak for a long time, it will only improve our trade deficit. But it will never remain weak permanently because the rates will begin to climb soon enough bringing foreign currency investments.
You think travel is the only thing it effects? you pay more for everything you import, which is a lot in the states. Wood, oil, Meat among other things. Which means higher prices for a lot of things.
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