ZoneMaster |
06-20-2007 09:40 PM |
Quote:
Originally Posted by Lenny2
(Post 12633584)
Inflation in the U.S. is next to nothing, the cost of the average basket of goods for the U.S. consumer hasn't changed, so why should we give a flying fuck how many dollars equals a euro?
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So magically a weak dollar trying to purchase imported product from China, Japan and the EU has no effect whatsoever on the average US person? That's a unique concept.
Quote:
Originally Posted by Lenny2
(Post 12633584)
IF we have an inflation problem then the U.S. consumer should worry about a "weak dollar", otherwise it doesn't matter to us.
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Inflation and a weak dollar are totally different subjects. Keeping to the thread subject - a weak dollar means more purchasing cost on imported product. Trust me - Wallmart know this well.
Quote:
Originally Posted by Lenny2
(Post 12633584)
If the dollar is weak against other currencies it means that U.S. produced goods are cheaper for foreigners to buy AND it means that those same goods are cheaper (relatively speaking) for U.S. consumers to buy.
All of that IS GOOD NEWS for the average American.
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Correct - it's fair to say a weak dollar should encourage an increase in exports. However, that is not happening in practice and the trade deficit has been a total failure for decades.
The basic problem, with exceptions, is that US consumption level far exceeds the ability to manufacture/export at competitive prices and this has been the case for roughly three decades. To support current consumption loans are being granted from other nations with China being the main lender of roughly 30% of loans.
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