To: xsysmgr
"The problem is that this process cannot go on indefinitely."
LOL! That's a problem? Nothing goes on indefinitely.
The bottom line is that the market will correct itself. We don't need to lose sleep worrying about it. The people who should worry about it are the foreigners who've been acquiring dollars, and refuse to spend them because they don't want to import American goods. They are the ones who are going to suffer when the dollar goes down.
8 posted on
12/01/2004 11:56:56 AM PST by
Brilliant
To: Brilliant
Dollars are like any other commodity in the fact that if you have less demand and more supply, the value comes down. How many dollars have been spread thoughout the world through the IMF and World bank? Our currency has to be in a constant state of expansion, when that stops, were screwed.
9 posted on
12/01/2004 12:01:18 PM PST by
Fyscat
To: Brilliant
to spend them because they don't want to import American goods Most companies that have huge trade surpluses with the US have a corresponding higher level of savings than the US. This is one of the biggest (if not THE biggest) reason for the trade deficit that we have with these countries. Look up the savings rate of countries like Japan. It's many times higher than the savings rate of the US. When it comes to trade with countries that only spend 90 cents of every dollar they earn, when we (as a nation) spend 98 cents of every dollar, we will eventually spend the difference on their goods and services.
11 posted on
12/01/2004 12:09:08 PM PST by
Rammer
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