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To: DuncanWaring
his practice of printing $100 billion per month weakens the US dollar and axiomatically raises prices for everything.

Unless the Egyptian currency is linked to the dollar, a weaker dollar wouldn't make their food more expensive.

23 posted on 01/30/2011 4:31:00 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot

Commodities are priced in dollars world-wide in international trade. So is oil. As the dollar continues to drop in value against non-devaluing assets (which excludes the Euro and Yen which are falling slightly slower), food and energy cost more everywhere. People are not recognizing - yet - what happens when the world’s reserve currency is abused and devalued by America. The real purposes of this action are to enable govt spending (to re-elect politicians) and to save banks. The ostensible purposes are to help the economy grow and to reduce unemployment. Keynesian lies, but clever.


31 posted on 01/30/2011 8:30:35 PM PST by JustTheTruth (Sometimes the Truth hurts so much that the masses refuse to face or accept the obvious.)
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To: Toddsterpatriot
Unless the Egyptian currency is linked to the dollar, a weaker dollar wouldn't make their food more expensive.

I guess you've never heard of carry trade.

35 posted on 01/31/2011 4:27:26 AM PST by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
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To: Toddsterpatriot
Unless the Egyptian currency is linked to the dollar, a weaker dollar wouldn't make their food more expensive.

The Egyptian Pound may or may not be formally linked to the US Dollar, but the exchange rate has been roughly 5.5 EGP per USD, plus-or-minus 5% for the last five years.

The exchange rate has been rising recently, meaning it takes more EGP to buy a USD, making it even more difficult to buy dollars to pay for things that are priced in dollars, whose price in dollars is also increasing.

36 posted on 01/31/2011 6:13:54 AM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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