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Politics : BuSab

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To: grusum who wrote (16949)1/19/2013 12:29:57 AM
From: Jorj X Mckie  Read Replies (1) of 23934
 
i think this is a fallacy. i don't think the devaluation of the dollar helps with trade or investment, just the same as it didn't help zimbabwe with trade and investment. a strengthening economy will help with trade and investment, but we have a weakening or at best, stagnating economy.

I do think that there is a difference between Zimbabwe and the U.S. We have real products and services that the world wants. When the dollar gets weaker relative to other currencies, it makes it cheaper for foreigners to buy our goods and services. This also applies to equities. If you compare the USD to an index, you can see that there is a bit of an inverse relationship. I would suggest that the USD is the dog and that stocks are the tail.

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