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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 234.70

-1.2%

Nov 14 9:30 AM EST

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To: GST who wrote (159777)	1/8/2004 2:25:18 PM
From: Oeconomicus	Read Replies (1) of 164684

The ONLY things that cost more when the dollar declines are the trillion dollars worth of things we import Ahh, but do they or do the exporting nations try to hold prices to remain competitive? OK, let's assume at some point they HAVE TO raise prices just to avoid going bust. And let's assume they hike prices by a whopping 20%. Does that translate to 20% inflation? Of course not. Imports account for less than 14% of consumption and fixed investment in the economy, so at most, you'd impact prices on that portion of spending. Of course, with those kinds of price hikes - or even half that hike - you'd see imports drop off and domestic production surge, meaning that higher import prices have even less of an impact. Plus, with the drop in the dollar, US exports have already become more competitive and profits of US multi-nationals are already benefiting from translation gains even on existing sales volumes, leading to more jobs and higher incomes here. So, we are NOT automatically made poorer just because the dollar drops, GST. If you didn't oversimplify every issue into your favorite hyperbolic sound bite, you'd understand that.

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