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Politics : Stockman Scott's Political Debate Porch
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To: Jim Willie CB who wrote (1295)7/3/2002 10:52:10 AM
From: inesa  Read Replies (2) of 89467
 
Most consumer imports (save autos/heavy machinery) are severely marked up by US based distributors and retail outlets.

They face a temporary margin reduction due to weaker dollar.

Then they renegotiate contracts to restore their margin. Overseas sweatshops have very little leverage. US market is too big to lose.

Net result is prices remain stable, perhaps edging up a few points. Dollar continues weak trend and stabilizes, gold moves up and levels off.

You're thinking in linear land; not considering feedback effects.

Big Macs will still cost 99 cents, fries will cost more.
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