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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (74705)	8/9/2001 6:55:14 AM
From: Zardoz	Read Replies (6) \| Respond to of 116898

Econ 201 says that a strong US Dollar policy is good for the US economy because: USA can't compete. They never could compete with the rest of the world. That's why by using a strong dollar policy you import deflation from USA; which is the world's consumer; while maintaining a lower payroll environment. Importing deflations offsets US inflation. Should the Strong Dollar policy break-down, you'll likely see both price increases and higher wage demand. That would cause a positive feedback and lead to importing inflation into the USA. Such events are then harder to control and you'd likely see the FRB forced to push Fed rates higher in what would seem like inflationary times. This would then create a Stag-Flationary economy; and would force ever increasing mortgage rates. A strong US Dollar policy serves the world... Hutch