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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: elmatador who wrote (7378)8/18/2001 10:33:20 AM
From: Ilaine  Read Replies (3) of 74559
 
If the countries that export to the US don't import from the US how long can that go on? The strong dollar effectively acts as a tariff on US goods. People in the US keep buying foreign goods because the strong dollar is an anti-tariff for foreign goods.

If the dollar is kept strong, not by market forces, but by concerted action of central banks, that is in effect subsidizing the export of foreign goods to the US.

The earnings of US companies are shrinking, the US consumer is buying less . . . . isn't the strong dollar the reason? If you don't buy what we make, we can't buy what you make.
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