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To: Monterrosa-24
There are imports besides items from France and Germany. Petrol, strategic metals, coffee, and a world of goods will become more expensive.

Only if the contract settlement is done in a currency other then the dollar. Currently 2/3 of all world trade is done using the dollar as the settlement currency.

Furthermore, international reputation plays a part in business and politics and when foreigners lose big by investing in US Dollars there are negative repercussions.

If you are speaking of currency traders then I wouldn't worry about their feelings. They are predators anyway and get what they deserve.

24 posted on 11/26/2004 7:39:24 AM PST by JoeV1 (The Democrats-The unlawful and corrupt leading the uneducated and blind)
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To: JoeV1


Common people from Latin America to Eastern Europe often put some of their humble savings in dollars ("gold money" they inaccurately call it)

It does not matter what currency is used to settle a contract if your holding dollars and the dollar weakens you lose money. Oil price per barrel in dollars can go up and the price can go up in the States while it is stable in Euro countries.

Another negative to a weak dollar is less bang for the buck on any project or investment in a foreign country including charities. It will cost more to send two dentists to Madagascar. It will cost more to get the Japanese to grind the specialty lens for the new Xenon Med Scope biz venture. It will cost the CIA more to bribe officials in Yemen.


39 posted on 11/26/2004 8:39:05 AM PST by Monterrosa-24 (Technology advances but human nature is dependably stagnant)
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