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To: Elsie

To all Y'all,

Its like this: The EU can continue to devalue the dollar, the EU will bring about its own demise in the process.

How? With a devalued dollar, OUR exports to Europe increase. Why? Because a strong Euro gives the EU more buying power against the dollar, and thus they spend more of their money on U.S. goods. Bottom line? It (a devalued dollar) helps OUR export markets.

Flip side: The EU's biggest trade partner is who? That's right...THE U.S. of A. So what the devalued dollar means, is that the Euro's "premium" price against the dollar is KILLING their export biggest export market, because why spend $$$'s on similar Euro goods when it will cost you almost twice the amount?

That my Freeper friends is why a devalued dollar (or attempts by the EU to devalue) are counter productive to the EU!

That is why the average rate of unemployment in the EU countries is above 9 percent right now. There is no market for them to produce for with a devalued dollar!

A double edged sword.


62 posted on 01/24/2005 2:31:22 PM PST by Jackal007
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To: Jackal007

The problem is the dollar has decreased in value for the last 3 years with no increase in exports as a result.


72 posted on 01/24/2005 6:15:12 PM PST by Trueredstater
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