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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: JustTheTruth
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.

Let's say the dollar is worth 5 Egyptian Pounds. Now the dollar drops 20%, suddenly it's worth 4 Egyptian Pounds.

Prices rise 25%. How is the Egyptian consumer hurt when wheat goes from $8 to $10 a bushel?

32 posted on 01/30/2011 8:54:46 PM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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