MDA - Market Direction Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 670.92

+0.1%

4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Joan Osland Graffius who wrote (54109)	6/14/2000 7:23:00 PM
From: UnBelievable	Read Replies (1) of 99985

Neither Japan Nor Europe Needs to Keep US$ Strong Even with an adjusted exchange rate they remain a very strong competitor. The reality is the United States could not function without imports without a major redeployment of capital which would be extremely expensive and probably take at least a decade. I would imagine that imports from both of these areas are so price inelastic that a decline in the dollar (a price increase to US consumers) will not reduce the total value of the dollars they receive, but rather will limit the amount of their domestic product which they must export for those dollars. The result will be that these countries will get to keep a little more of what they produce than had been the case. From the US perspective this will be inflationary. Which as you know is what happens when you increase the money supply faster than the increase in the supply of real goods and services. I don't see the issue related to oil as being any different. While oil companies will probably benefit a little by selling existing inventory at increased prices and by marking up a little more expensive product, most of the increased cost will be passed back to the producers. Again with inflationary implications for the US. What the US has to hope for is that these other growing regions of the world will choose to buy additional goods and services from the US. Unless that is the case the inflationary pressure will result in not only a decline in purchasing power for US consumers, but also a decrease in demand for US companies. Which results in lower profits, lower stock prices, decreased demand for workers and decreased payrolls, which all combine to further exacerbate the problem. What could result is economic stagnation and monetary inflation. Not the end of the world, but the end of the world as we have known it over the last decade.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next