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A Dollar Warning
Wall Street Journal ^ | Sunday, November 28, 2004 | Wall Street Journal Editors

Posted on 11/27/2004 9:49:36 PM PST by Sarah

A Dollar Warning America can't devalue its way to prosperity. Sunday, November 28, 2004 12:01 a.m. EST President Bush has let everyone know he intends to pursue an ambitious second-term agenda. But if he wants to know what could spoil his plans even before his second Inaugural, he might consider the market reaction to his Administration's weak dollar complacency.

(Excerpt) Read more at opinionjournal.com ...


TOPICS: Business/Economy; Foreign Affairs; Government; News/Current Events
KEYWORDS: currency; devaluation; dollar
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1 posted on 11/27/2004 9:49:37 PM PST by Sarah
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To: FreedomCalls; Southack; B4Ranch; rdb3; jpsb; soccer_linux_mozilla; GOP_1900AD

heads up for those interested!


2 posted on 11/27/2004 9:52:43 PM PST by Sarah
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To: JoeV1

ditto


3 posted on 11/27/2004 9:53:41 PM PST by Sarah
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To: Sarah

Stocks and bonds both tanked the week before Thanksgiving, as the dollar fell again and oil and gold jumped, the latter to its highest level ($449 an ounce) since 1987. Investors may recall that was the last time we had a dollar crisis, as well as a little stock-market episode known as Black Monday. The markets rallied Monday, as the dollar firmed and oil dropped. But we hope the point has been driven home that investors don't bet on countries that debase their currencies.

All the more so when the nation's leading policy makers seem blasé, not to say clueless, about the matter. Treasury Secretary John Snow has been roaming the world saying that he favors a "strong dollar" policy even as he lobbies for a weaker dollar against Asian currencies. Investors who observe what Mr. Snow does tend to discount what he says.


4 posted on 11/27/2004 9:54:32 PM PST by Sarah
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To: Sarah

ping


5 posted on 11/27/2004 9:58:29 PM PST by investigateworld (( Willie Green for President!!! ...Now on my 5th day of not bashing Wal-mart))
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To: Sarah

And.


6 posted on 11/27/2004 10:03:14 PM PST by fatima (Pray for our troops.)
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To: Sarah

Where do you think the $ is going in the next month or two ?


7 posted on 11/27/2004 10:21:15 PM PST by Deetes
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To: Sarah

In my opinion, there is substantial inflation going on even though it is claimed otherwise. I'm in the process of building a new home and common material costs have increased dramatically over the last few years. Steel has increased something like 60% in just the last year. Lumber has more than doubled in the last four years I believe. Virtually everything else has been the same trend.


8 posted on 11/27/2004 10:22:14 PM PST by DB ()
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To: Sarah

Andrew Jackson is rolling over in his grave. And to add insult to injury, they threw his picture on a 20 dollar federal reserve note.


9 posted on 11/27/2004 10:25:01 PM PST by TheExperiment_Is_Over
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To: DB
"I'm in the process of building a new home and common material costs have increased dramatically over the last few years."

Larger quantities of our lumber, for one, are being shipped to other countries, especially China. The current and ongoing economic policy (along with high oil prices also due to much more consumption in China and other countries) should adjust that insanity and other problems. And BTW, while China consumes much of our lumber, China is conserving its own huge forest preverses in Communist (or more recently, fascist) fashion.

Thank goodness, policy and fortune that it is now becoming more expensive to ship such enormous percentages of one of our natural resources overseas. Maybe some of our brightest will also start new domestic small mills (as many of the older small mills were run out of business by their competition in partnership with radical environmentalists).

But yes, certain investors and corporates will complain loudly against it, just as they did against the fed's rate lowering not so long ago (which eventually brought the current trend). Good and secure policy is sometimes uncomfortable, at first. It's time for us to hire more inventive, productive workers (instead of socially oriented witch doctors) to earn our dollars the honest way--by producing more usable goods here and selling them here.
10 posted on 11/27/2004 10:38:26 PM PST by familyop (Essayons)
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To: TheExperiment_Is_Over

Nobody wants to hear it. They're too busy arguing over what Greenspan's latest fart smelled like.


11 posted on 11/27/2004 10:43:50 PM PST by agitator (...And that no man might buy or sell, save he that had the mark)
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To: Starwind

ping


12 posted on 11/27/2004 10:48:27 PM PST by OwenKellogg
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To: Sarah

The business of America is Business.


13 posted on 11/27/2004 10:50:56 PM PST by timestax
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To: TheExperiment_Is_Over

It took almost 200 years to build our great republic, THE REPUBLIC OF THE UNITED STATES OF AMERICA, and it took only 8 years to destroy the beacon of free world (8 years of Bill Clinton)


14 posted on 11/27/2004 10:55:33 PM PST by nanak (Tom Tancredo 2008:Last Hope to Save America)
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To: familyop
China consumes much of our lumber

Yes but how much of that lumber comes back to the US as furniture ?

15 posted on 11/27/2004 11:05:15 PM PST by staytrue
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To: familyop

Although China is consuming a greater share of the world's lumber, steel and cement, they are not directly receiving these mat'ls from us. Domestic lumber mills have closed recently, but not due to environmentalists. The mills that have closed have done so due to inefficiencies in production. Newer mills have a greater production capacity with fewer employees. New mills are slated to come on over the next few months. One mill closed for a short time due to its inability to log in an economical proximity to the mill. That was, arguably, caused by environmentalists. Lumber did almost double in price this year but it wasn't due to the Chinese. Believe it or not it was due to Iraq. The gov't shipped an incredible amount of lumber and plywood to Iraq in the summer of 2003, thus drying up the domestic supply and driving up the price. China gets most of it lumber as logs from South America. Their laws only allow for the importation of raw mat'ls. We compete with the Chinese for steel and cement on the int'l market since our domestic production cannot keep up with demand.


16 posted on 11/27/2004 11:05:42 PM PST by REDWOOD99
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To: Sarah
Investors may recall that was the last time we had a dollar crisis, as well as a little stock-market episode known as Black Monday.

I remember that. I also remember that if you had the guts to buy on Tues. or Weds., you would have been financially rewarded beyond your wildest dreams. I also remember that despite many financial experts predicting the crash would cause a depression, the real economy went booming right along.

Still a weak currency is not a good thing. If your currency is too strong, it is easy to weaken it. If your currency is too weak, it takes bitter medicine to strengthen it.

17 posted on 11/27/2004 11:09:34 PM PST by staytrue
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To: Deetes

On the previous article posted on this topic:
http://www.freerepublic.com/focus/f-news/1289411/posts
most think it hasn't hit bottom yet!


18 posted on 11/27/2004 11:58:37 PM PST by Sarah
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To: DB

Your steel and lumber examples are odd, they aren't blameable on the week dollar, as they're American industries, no?


19 posted on 11/27/2004 11:59:53 PM PST by Sarah
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To: nanak

I'm no fan of Clinton, but how exactly is it his fault that the dollar is weak?


20 posted on 11/28/2004 12:01:08 AM PST by Sarah
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