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Strategies & Market Trends : New US Economy Policy

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To: Arthur Tang who wrote (175)6/23/1998 9:17:00 AM
From: Les H  Read Replies (1) of 435
 
The exchange rate has less impact on US because many of the key
import goods such as oil and base metals are priced in dollars.
Similarly, a strong dollar hurts Japan and other countries because
of the same fact and depresses demand for key inputs into US
economy, thereby keeping inflation lower here. Conversely, when
the dollar is weaker and demand for those resources increases
abroad, the price for those inputs will inflate. But as I pointed
out above, since the materials are priced in dollars, the effect
is not as severe as the Asian countries are facing now. Of course,
you don't know anything about supply and demand. You're just another
stupid beaurocrat. They can tax and spend.
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