Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: BigBull who wrote (77942)	11/5/2000 9:14:32 PM
From: BigBull	Read Replies (3) \| Respond to of 95453

OT Dollar problem. Whooooooooooooooaaaahhhhhhhh! Wait just a cotton pickin' minute! What very few seem to admit or even acknowledge about continued dollar strength is the extremely deleterious effect it will have on the competitiveness of US goods and services. Not only abroad but domestically as well. Are American goods so superior that they can sacrifice a 30% price advantage in Europe alone? Yes hedging can help to militate this somewhat as can building products overseas but can a domestic company even think about competing against a foreign made product with a built in 30% price advantage? C'mon! Just ask NSS! During the Reagan boom years the strong dollar became a HUGE problem for US competitiveness. So great, in fact that the US Treasury Secretary had to take concerted action against it. Remember the '87 crash? Unfortunately, the true lag effects of the strong dollar haven't shown up yet, in their full force. Over the next two quarters the damage will begin to show up in earnest. It will be a disaster for international US based companies but perhaps even more importantly for smaller domestic companies who have almost no protection against much cheaper foreign imports. Bet on it. But the sad thing about all this is that no one will take action against the dollar until people start losing jobs over it. And they will - as the night follows the day. Only then will the necessary political fury be unleashed to drive the dollar down. And it won't be by any measly 10 - 15%! I know the subject of jobs is probably irrelevant to most members of this thread as they are independently wealthy and have no need to even consider such a tawdry thing as working for a living. Unfortunately most Americans are not in such a position and will raise holy political hell when they get fired because of cheap imports. And no I am not a "populist", just a realist who has seen this before. I am somewhat surprised at the rather "selective" memories people display when they pooh pooh the effects of continued dollar strength on the "American Colossus". What some forget is that the only time we where truly a "Colossus" was when the world lay in the ash heap of WW II and people HAD to buy our stuff. Now they and I don't. Frankly, I can't wait till American car dealers have to start HEAVILY discounting. I guess only then all those laid off auto workers won't be feeling too "Colossal". Oh what the hell - tough cookies. I'm raising all the cash I can while reducing debt to the minimum, I'm lickin' my chops. Can't wait for those 850 mhz pentiums getting blown out the door next Presidents day either. Just call me Big "Let them eat cake" Bull! ;o{}}}}}}}}}