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Non-Tech : NOTES

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To: Didi who wrote (1577)1/30/2002 4:54:48 PM
From: Jim Willie CB  Read Replies (1) of 2505
 
GreenScheiss has low ceiling for growth , created by strong US$
some have said the reduced rates are a devaluation on the dollar
I disagree
it is reduction on returns on investment in dollar-denominated bond holdings held in safe haven

the strong US$ is like a strong tide soon to happen
many world smart guys know this and hesitate to embark on new ventures in $ terms

foreigners will not expand in the US with such high dollar
exchange
if you expect the $ to slip 3% versus your home currency, then add 3% to the interest rate

furthermore, the strong $ remains a major obstacle for US exporters
our products are just way too expensive now for foreign customers to renew orders

GreenTurd is between a rock and hard place
his rate cuts dont work well with the super strong dollar trumping his policy
trouble is, dollar will come down only after rates rise
and higher rates mean headwind for stocks
not to mention declining housing prices, and consumer spending cuts

I giggle when I hear moron Democrats calling this the Bush Recession
to say that undermines all credibility
this is the GreenSpasm Recession
the aftermath of a bubble he had a monster hand in creating
/ JW
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