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Politics : Politics for Pros- moderated
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To: JohnM who wrote (779)5/9/2003 9:54:22 PM
From: Condor  Read Replies (3) of 794006
 
I read/saw/heard ?? that the US $ was at a 5 year low vs. the Euro at .88
It went on to say that it could result in a substantial increase in US economic activity as its goods became more competitively priced in the world. The disadvantage was that inflation would rear its ugly head again as a result and interest rates would probably ratchet up quickly.

I'm trying to visualize the effects of this on elections next year. I would expect it to be bullish for the incumbent as employment increases, mind you I suspect margins might be squeezed (low dollar) thus profits not so hot? (markets).

A disadvantage will be realized in travel abroad but it shouldn't matter since surely no self respecting US citizen would travel to first world G-8 countries that they have recently jettisoned, unless one travels to a new coalition partner country like Krygbasklestack.
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