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To: varon

how stupid of an article is that !

The dollar depreciating is good for the economy as long as its not too sudden. This is how it works: the dollar looses value implies imports become expensive and exports cheaper. There have been instances of sooo many industries rampin up production in the last 2 years cos the dollar slid against euro smoothly. If the dollar is cheaper then american goods cost less in the world. If you need anymore convincing compare the number of tourists coming down into U.S from europe the last few years from historical averages.

I would say a orderly depreciation in dollar is exactly what we need.

I agree foreign vacations will become expensive for us but who the heck wants to go abroad when we got so many beautiful places worth checking out here in USA !!


22 posted on 08/31/2005 5:02:55 AM PDT by icyicym
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To: icyicym
This is how it works: the dollar looses value implies imports become expensive

Including oil. The dollar has lost 30% of its value against the Euro and some other major currencies in recent so it is not surprising that oil producers are demanding more of our less valuable dollars for their oil that is just as good as it ever was.

For years the world has used dollars as the reserve currency and has trusted in the faith and good credit of our government. I think we may be moving into a period where that faith wanes and where oil replaces gold as the underlying commodity that gives currency value.

In the meantime, if oil gets too expensive, it is going to choke off that recovery in our manufacturing sector that was driven by the cheap dollar.

28 posted on 08/31/2005 7:21:04 AM PDT by jackbenimble (Import the third world, become the third world)
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