To: SUSSA
Well, my income is all in dollars, but I live on the economy in Europe so I'm getting beat up badly. Its cyclical (I hope) and in any event there's nothing I can do to change it. Even as a free market advocate I realize that markets are sometimes irrational. In this case I think it is simply a matter of "expectations." Its reasonable to assume that the trade deficit is a significant factor, but I think some economists over emphasize this.
9 posted on
12/17/2003 2:42:53 AM PST by
Cap Huff
To: Cap Huff
Its reasonable to assume that the trade deficit is a significant factor, but I think some economists over emphasize this. Right. Mostly, I suspect, because of a political bent. The biggest reason is the U.S. interest rates is at a 45 year low.
When the FED does increase the rate, you'll watch the dollar value go up and up.
12 posted on
12/17/2003 3:54:32 AM PST by
demlosers
(Light weight and flexible - radiation shielding is solved.)
To: Cap Huff
I was living in Europe back in the early 90's and the situation then was the same. You have my sympathy and hope that you can work out some currency exchange escalators with your employer. But the bottom line is that, like most things, there is a good side (as well as bad) to a weaker dollar. It makes inward investment from Europe to the US more attractive, and US products more competitive in export
and domestic markets.
All that aside, I know first hand these sorts of things are small comfort when you're trying to make ends meet, but if all else fails and it's possible, maybe you can just come home.
20 posted on
12/17/2003 6:21:24 AM PST by
katana
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson