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Old 01-05-2004, 03:41 PM  
davecummings
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Join Date: Oct 2003
Location: San Diego
Posts: 2,922
:2cents

The present value of the dollar is good for America in that it makes our goods and services cheaper for foreigners to purchase, something we presently need to assure an economic recovery. It also cuts back on dollar-expensive vacationing overseas, thus keep vacationers spending vacation dollars in America which further helps economic recovery.

Like him and/or his policies or not, the Bush tax cut along with lower interest rates and no significant inflation along with a cheaper dollar might make us more money in the long run as jobs start to be created to replace inventories running low due to cheap dollar costs for our manufactured goods. Lately, productivity innovations has held down some job growth, so we need a cheaper dollar to spur overseas demand for our products to the point that it creates manufacturing jobs.

My only worry is that high crude oil prices might slow down the economy, or raise inflation (defined as more money chasing the same goods and services) which might cause the Fed to raise interest rates to fight inflation---yes, the election year might possibly hold down rate increases, but....

Dave
www.davecummings.com
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