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Don't Fear The Weaker Dollar -- It's Keeping The Economy Afloat
Investor's Business Daily ^ | November 30, 2007

Posted on 12/02/2007 4:53:00 AM PST by Zakeet

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To: driftless2

I was laughing at the made-in-America. I don’t have hard data but I’ll bet zero Dell laptops are made in America. For desktops that may be assembled here, their cheaper ones will use mostly foreign components. The more expensive desktops and their servers will use some Intel CPU’s made here, and some from overseas.


41 posted on 12/02/2007 6:49:51 AM PST by palmer
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To: Always Right

The ceo of Airbus was whining they can not compete with Boeing because of the low dollar. He was just making excuses for their failed policy. 55% of all commercial aircraft in the world are made by Boeing. That is a big deal! Bigger than a big mac.


42 posted on 12/02/2007 6:50:13 AM PST by mefistofelerevised
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To: realpatriot

The last time I was in Europe the only place to eat at 2:00 a.m. was a McDonald’s.


43 posted on 12/02/2007 6:54:10 AM PST by mefistofelerevised
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To: realpatriot

GOOD GRIEF that sounded ignorantly like a Pat Buchanan comment.


44 posted on 12/02/2007 6:55:39 AM PST by Ann Archy (Abortion: The Human Sacrifice to the god of Convenience.)
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To: realpatriot

“Which “U.S. goods?””

Well, there are the books I write for Osprey, Ltd. The contract is written in pounds sterling and paid in US dollars. The drop in the dollar added a fat chunk of change to my last paycheck. Additionally, they like contracting with US authors because our expenses are pegged in dollars. Since I get stuff in the US, my expenses have kept constant in dollars, which means they have dropped against the pound.

They want two, maybe three or four more books, from me in 2008. That’s enough to pay my son’s college expenses for a year. And I am getting about 20% more than I was two years ago thanks to the drop in the dollar against the pound.

Admittedly it may not be a big effect on the national economy, not like what Boeing does with the jets they sell overseas. But it is a hell of a positive effect on my personal economy. Sucks to be importing, but this is boom times for exporters.


45 posted on 12/02/2007 7:00:40 AM PST by No Truce With Kings (The opinions expressed are mine! Mine! MINE! All Mine!)
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To: raybbr

What % of your budget is food & energy? Combined it’s about 12-18% of mine depending on the month. We need more included besides those 2 things whether you like it or not.


46 posted on 12/02/2007 7:05:39 AM PST by rb22982
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To: raybbr
Imagine CPI if it included food, energy and the things we need to live.

Or even the things people really like to buy - you can bet booze, beer, and ciggies aren't included either.
47 posted on 12/02/2007 7:18:26 AM PST by Freedom4US
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To: All

Democrats love the national debt.

Libertarians love the trade deficit.


48 posted on 12/02/2007 7:29:04 AM PST by Hunterite
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To: Halgr

What we’re seeing is a fed that is pushing an inflationary policy by printing more money that the market can bear, resulting in a weaker dollar.

More dollars chasing the same amount of goods = inflation.

Yet, at the same time, economic factors such as the housing bubble and a high international demand for commodities like metals and oil are acting as a brake to slow our economy down.

Thus we get a stagnate economy with inflation, ie - stagflation (1970’s flashback!)

Bush is, economically speaking, turning into the Republican version of Carter.

Gag!


49 posted on 12/02/2007 7:32:31 AM PST by gogogodzilla (Republicans are just Socialism-lite.)
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To: Ann Archy

So, instead of labeling my comment “ignorant” why don’t you weigh in with some facts?

Cowardly? Intellectually ill-equipped?

Now quit being so rude!


50 posted on 12/02/2007 7:33:26 AM PST by realpatriot (Some spelling errers entionally included!)
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To: mefistofelerevised; All

OK....so we have seattle and witchita taken care of....how about the rest of America????


51 posted on 12/02/2007 7:44:48 AM PST by Halgr (Once a Marine, always a Marine - Semper Fi)
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To: Zakeet

Ghost of America’s future, I fear thee most of all. Or put another way “It’s the inflation, stupid.”


52 posted on 12/02/2007 7:49:52 AM PST by ex-snook ("Above all things, truth beareth away the victory.")
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To: realpatriot; Halgr
Which "U.S. goods?" Big Mac's? Seriously.

- I live in rural SC. The company I work for manufactures industrial equipment for welding & cutting. Our exports are booming.
- A half mile down the road from us, GE manufactures the magnets for MRI machines. Exports are booming.
- Three miles down the road Honda manufactures ATV's and personal watercraft. Exports are booming.
- 5 miles up the road a small company is manufacturing the cabs used on Caterpillar tractors. Their business is booming.

All of these primary equipment manufacturers use local vendors and contractors, they can't keep up with our orders.

I recently attended the Fabrication Technology (FabTech) trade show in Chicago. It is sponsored by the Society of Manufacturing Engineers and the American Welding Society. There were thousands of manufacturers there and they were all singing the same tune.

53 posted on 12/02/2007 7:54:55 AM PST by SC Swamp Fox (Join our Folding@Home team (Team# 36120) keyword: folding)
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To: SC Swamp Fox

Thank you.

This is the type of response we need around here.

Do you believe the falling dollar is contributing to the level of business?


54 posted on 12/02/2007 8:01:44 AM PST by realpatriot (Some spelling errers entionally included!)
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To: realpatriot
Do you believe the falling dollar is contributing to the level of business?

I know it is, at least on our products. We used to sell our superior products against inferior local goods in many of these foreign markets. We usually had to overcome a large price differential. Right now, a company in Poland can buy our superior US built equipment at a price that is very close to (usually not less then) the inferior local products.

For the first time in a long time, we have been able to raise our export prices (in dollars) and we are using the additional cash to upgrade our facilities and equipment and to hire & train new people. This is significant, because the average age of our equipment and our people were both getting pretty high.

55 posted on 12/02/2007 8:25:08 AM PST by SC Swamp Fox (Join our Folding@Home team (Team# 36120) keyword: folding)
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To: realpatriot
This is the type of response we need around here.

You and I signed up within a month of each other. Threads used to be a lot shorter, but seem to contain more "content".

56 posted on 12/02/2007 8:31:27 AM PST by SC Swamp Fox (Join our Folding@Home team (Team# 36120) keyword: folding)
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To: SC Swamp Fox

I was a cost accountant from 1982 to 1994.....

I worked for 5 companies, all manufacturers, during that time....all but one is out of business today.


57 posted on 12/02/2007 8:36:09 AM PST by Halgr (Once a Marine, always a Marine - Semper Fi)
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To: Always Right
Pharmaceutical drugs

Maybe you missed this headline:
Pfizer: Mulls Outsourcing 30% Of Manufacturing; Much To Asia

The domestic content of Boeing's new 787 is also slated to be less than 40%.

It will take the decades to rebuild America's manufacturing base that were spent losing it.

58 posted on 12/02/2007 8:42:23 AM PST by Last Dakotan
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To: Zakeet

bttt


59 posted on 12/02/2007 8:47:52 AM PST by petercooper ("Daisy-cutters trump a wiretap anytime." - Nicole Gelinas - 02-10-04)
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To: SC Swamp Fox

I know it is, at least on our products. We used to sell our superior products against inferior local goods in many of these foreign markets. We usually had to overcome a large price differential. Right now, a company in Poland can buy our superior US built equipment at a price that is very close to (usually not less then) the inferior local products.

For the first time in a long time, we have been able to raise our export prices (in dollars) and we are using the additional cash to upgrade our facilities and equipment and to hire & train new people. This is significant, because the average age of our equipment and our people were both getting pretty high.

***********************

You think these countries are going to keep their tariffs low out of good will and love for the United States?


60 posted on 12/02/2007 8:48:15 AM PST by Hunterite
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