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To: SeekAndFind

That’s how the economy really works in the long run. A country that decreases manufacturing will have a decreasing currency. One country must have real and useful goods to trade for such useful things from another country. Currencies will balance in this situation.

Have fun. Enjoy the slide.


2 posted on 10/04/2012 12:53:42 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: familyop

“Have fun. Enjoy the slide.”

My Industrial Supplies business will be a hobby if this asshole gets re-elected.


3 posted on 10/04/2012 1:02:14 PM PDT by jessduntno ("Socialism only works...in Heaven where they don't need it and hell where they have it." - RR)
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To: familyop

There is no necessary reason for the dollar to drop if manufacturing declines. Exchange ratios are determined, in the long run, by supply and demand of the various currencies.

Agricultural products are a huge export for the US and increases in that sector could outweigh the decrease in manufactured products.

In addition, manufacturing declines could, perversely, lead to the strengthening of the dollar because they would mean a slowing economy which reduces demand for foreign exchange strengthening the dollar.


6 posted on 10/04/2012 8:11:04 PM PDT by arrogantsob (The Disaster MUST Go. Sarah herself supports Romney.)
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