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Strategies & Market Trends : Currents of Currency

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To: GUSTAVE JAEGER who wrote (74)9/8/2003 2:51:35 PM
From: Ahda  Read Replies (2) of 594
 
It is my belief that the changing landscape of business to that of a global world will affect the revenue that the IRS obtains. So to me at this time there is a very high risk associated with currency and bonds. Poverty has existed for centuries Governing bodies continually change. To me as business landscape shifts it is an absolute that all nations keep their budgets on a scale that is manageable.

The sun does rise in the East as the peg holds. Allowing other currency to be held is wise too. If the USA had a win win situation she also due to the increased amounts of her currency on the world market held by all nations puts the entire world at risk. China there of allowing the accumulate of dollars to invest or dispose of limits her exposure to holding our dollars and the risk associated with said.

All China can do is to limit inflation is tight control of currency. The pro she can give to her Nation amounts to a simple legal system that will reduce inflation. In the process of construction it is the superfluous objects that add the greatest cost.

In this USA jobless recovery you have to attribute the recovery to something as economic figures are showing growth while payroll is continually decreasing. My conclusion for the general populous is a great portion of that growth has more to do with cap gains and housing price increase. Stats in this industry I feel back my theory up. Payroll clearly shows a decrease which to me will mean reduced revenue for the IRS. Tax deductions and tinkering do favor self employed.

Corporate USA is not expanding jobs in the USA. Reasons for this vary but what I gather is new operations as well as existing facilities are far more streamlined in other areas. As companies continue to search for greater profits the balance sheet USA division is the most lofty and offers the greatest reduction potential in wages. In the tech industry it is my belief that the head cutting has pretty well ended, unfortunately anticipation of any substantial increase in head count of US employees has ended too.

A government cannot be expected to be the creator of business but the recipient of the endeavors of its populous. Infinite dollar flow is the culprit that creates wage inflation which leads to a nation decreased future value of dollar. The US UK Europe and Canada all fight inflation our systems are set up to aid and the results are a continued devaluation of the dollars ability to create value at home.

In world landscape business general thought amounts to who needs a strong dollar it reduces my ability to compete. So the pleas of the US to undo the peg at this point in time if China complied would immediately decrease the value of the US dollar, The results however would only be profit on the currency market as the dollar adjusted. One cannot adjust the labor unit or high wage cost as that is an internal result of excess currency as well as excess debt. Ideally that self corrects.

Japan experienced inflation which remained in her nation. When one increases currency at a rate that is in excess of internal growth one decreases the future value of the dollar. Exactly the same affect occurs when dollars are increased on an external base as the results are dollar comes home and are unable to create future value. Pumping leads to big time Dumping.

When I look at the pension funds and think of our auto makers the funds would of been self generating providing employment remained constant or increased. Where by an increase in technology might decrease costs an increase of employees whose wages are drawn in less costly dollars amounts to decreased dollars to the fund.

The tragedy of this is providing a business can produce superior products the increase of production will go to the nation who offers the lowest operational cost.
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