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To: Fzob
The dollar is being artificially propped up by foreign govs to keep their products affordable here. If the dollar drops, foreign products increase in price here and in other countries where their currency is strong.

If it does drop, then our products will be more affordable in other countries, but some countries will be hurt badly, like Japan who depends on exports to survive. Prices for all imports, including oil, will increase here and generally, the world's economy will slow, hurting everyone, since we are the engine of the world's economy. If the US has economic sniffles, the world has a cold.
2 posted on 01/04/2003 4:41:45 AM PST by KeyWest
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To: KeyWest
Thanks. That make sense

Prices for all imports, including oil, will increase here and generally, the world's economy will slow, hurting everyone,...

Adjusted for inflation the price of oil is very low. Which prompt this question in my mind. If oil prices were to increase enough to spur capital investments in the petro-chem business is that really a bad thing? Or is my assumption that capital investment in that area would grow is false.

3 posted on 01/04/2003 4:48:51 AM PST by Fzob
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