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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Pitera who wrote (4241)7/11/2001 8:10:49 PM
From: axial  Read Replies (1) | Respond to of 33421
 
Hi, John - "That may be technically correct if you parse the meaning of domestic prices, but the US imports a tremendous quantity of goods and a lower USD should cause price increases in things like Asian made clothes, shoes, electronics etc............."

Exactly! Given the large and longstanding trade deficit, a significantly weaker US dollar would have inflationary effects. The consequent decrease in demand would further imperil international economies.

Still, the US has carried the world's economic water for a long time; one wonders if there are any steps, any more, that can be taken unilaterally, and without undue regard for the international impact.

Tangled web, or Gordian knot?



To: John Pitera who wrote (4241)7/12/2001 1:16:49 PM
From: MulhollandDrive  Respond to of 33421
 
Hi John,

Nice to see you again...

Thank you for the Morgenstern article. I was struggling with the behavior of the dollar a couple of weeks ago an this article fleshes out my basic analysis.

Message 15997279