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To: AzaleaCity5691
Informal depreciation of the dollar is already occurring. I was saving for a Canon 300 mm 2.8L lens. In January of 2008, it cost around 3K. Now, it's 4500, and is up $500 since January. The high end camera lenses are good meters for actual monetary depreciation because of the precision grinding of the lenses and mechanical complexity of the device. There is a floor for manufacturing cost which won't be overcome by technological advances.

Similarly, the Canon 1D MK IV camera is $1000 more than it's predecessor, the Mark III. Canon strives to make the new version of a camera match the old version in price. Canon and Nikon are in a blood war for the high end professional camera market, and keep each other honest on price.

The clowns in Washington are printing money as fast as they can (or adding numbers to the database) and the Arabs and N. Koreans are counterfeiting money.

They can control the rate of exchange, but foreign manufacturers will raise the price of products, regardless of what the governments dictate.

29 posted on 06/06/2010 10:46:08 AM PDT by Richard Kimball (We're all criminals. They just haven't figured out what some of us have done yet.)
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To: Richard Kimball

Eventually the idea would be that this would make foreign products untenable in the American market driving foreign producers to either produce in America to continue accessing our market or it would drive domestic interests to start bringing back manufacturing.

Most people seem to think we don’t have manufacturing capacity. We have a lot of equipment in old manufacturing plants just dying to be used if their was demand. Our manufacturing sector is dead because we simply can’t be profitable doing it.

A depreciated dollar could reverse that trend.


33 posted on 06/06/2010 11:11:43 AM PDT by AzaleaCity5691
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