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Politics : Formerly About Advanced Micro Devices

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To: tejek who wrote (528865)11/13/2009 4:49:16 PM
From: i-node  Read Replies (2) of 1575181
 
They don't consider inflation to be an immediate threat because the economy is weak and deflationary.

I don't think it is an immediate threat but only because it takes a year or two for inflation to become a threat after what has transpired. But once it starts (and it will) the Fed will have to tighten and they have said they stand ready to tighten fast and hard and I take them at their word.


Yes, a weak dollar makes foreign products more expensive. That encourages Americans to buy American over the long term. It also makes American products more affordable to foreigners. Over the long term, that should help the trade deficit to lessen and create American jobs.


How'd that work out in the 30s, when Smoot Hawley did essentially the same thing?
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