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To: Zardoz who wrote (74706)	8/9/2001 7:23:09 AM
From: long-gone	Respond to of 116764

<<They never could compete with the rest of the world. >> All depends about which you speak. If you are talking lumber, no. Making cars, not as clear cut, based on value of dollar. Wheat, were that true Canadians wouldn't be buying US wheat farms...but damn they have been. washes out that argument?

To: Zardoz who wrote (74706)	8/9/2001 7:23:11 AM
From: Square_Dealings	Respond to of 116764

It's over done Hutch. The US consumer cant spend anymore, they are tapped out. $8000 debt for every person in the US, on credit cards which will take 20 years on average to pay back. So you need the rest of the world to buy US goods now, badly. And you don't do that with the "overvalued dollar policy" Better go back to school. M. p.s. Make sure to let us know the bottom on gold ok

To: Zardoz who wrote (74706)	8/9/2001 8:02:12 AM
From: long-gone	Respond to of 116764

See Hutch, you aren't talking about is what taught in Econ 302 coursework, manipulated markets never hold. Even if we don't agree that gold was manipulated lower, it is common knowledge the prior (Clinton) administration felt free to intervene into a higher dollar value. Markets always must work to determine value. No values can be maintained with-out end, all currency pegs and set point values have always broken. Wisely, the current administration wishes the market to set the value of the dollar. There is no intervention near at hand which would continue to set an artificial dollar level. If we started defending the dollar, at the current high level, to the last penny, we all know where it would end, & it wouldn't be pretty. We aren't talking about a 70% reduction in $US value, which would result in a sudden sharp hard break, rather a less painful more gradual easing of dollar value to the gold $320-350, Euro $0.95-1.05,Yen 103-110(? this one is the problem),C$0.74-.80, M Peso ? $0.15-19 (& continuing to improve),but not sure C Yuan isn't near "correct" value now but after correction to levels mentioned.. Of course, there will be a "correction" which means over correction where we will see a bounce to gold $380-550, but then that is another story when we have a bit more time.

To: Zardoz who wrote (74706)	8/9/2001 9:17:15 AM
From: Alex	Read Replies (1) \| Respond to of 116764

<They never could compete with the rest of the world> As someone who has travelled to the U.S. frequently over the last thirty years (my better half being from there), I have to disagree with this comment. There was a day when you could recoup what was lost in the exchange rate by buying merchandise at lower prices. NO MORE. This has to matter and be accounted for in the market eventually. Either that, or the law of supply and demand does not apply to the dollar. Come to think of it, maybe the law of supply and demand doesn't apply to the dollar. For all the talk about oversupply in the gold market, this pales in comparison to the growth in fiat money supply in the last few years. But the laws that apparently apply to gold, and everything else as well, can be argued NOT to apply to the dollar. And many times this contradictory argument is made and defended by the same people. Eventually it has to matter that prices are becoming too expensive in the U.S. and that the dollar is too strong. Recall the days, not that long ago, when cross border shopping was a big issue here in Canada. You never hear of it today. They can raise the buying limit, as they have been doing, as high as they want now. Nobody is going to take the loss on the exchange rate and the hit on prices. We still go to the U.S. to visit family, but we no longer shop there. They've priced themselves out of the market.

To: Zardoz who wrote (74706)	8/9/2001 11:50:19 AM
From: Ahda	Respond to of 116764

A strong US Dollar policy serves the world True but it doesn't serve the majority of the nation. It makes the cost of research here high. The ability to produce a new product becomes limited due to costs. The ability to compete on the open market is very limited due to initial costs. When you look at retailing there are numerous phases a product goes through before it reaches the shelves. Retailers operating on a world base in some ways look to the price they can receive here for a product to cover the whole and that too is a problem. The change in currency cannot be accurately predicated so there is a vulnerable spot they have to deal with and the coverage of cost though low elsewhere still looks for profit that must be made here. At present we could look at GM and a new hybrid and think this technology is supreme. It is not the case Honda has one too. Yet if there was a research plant in China that produced a hybrid, the Yuan being so much less the end result would be return of capital from that research would take far less time due to the initial cost being lower and the profit potential greater in the world market. China has a huge competitive edge at present providing her politicians stay our of her business world. Her target should be the Yuan that can increased value. The only way she can do that is make darn sure there are not too many of them out there. The US dollar does serve the world but here in CA it has increased life standards for very few.