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To: S. maltophilia who wrote (161007)	4/19/2002 7:20:11 PM
From: Mark Adams	Read Replies (1) \| Respond to of 436258

leading to dollar inflation look for the U.S. wage structure to implode While I agree with your premise, what about Europe? Are they not subject to the same deflationary forces with respect to the cost of labor? Japan already migrates industrial production offshore. So if America, Europe and Japan are all subject to the same deflationary forces- how does that effect the currency exchange rates? The hollowing out of America/Japan- isn't it really just sharing the work with our fellow (global) citizens? We can find other work, usually in the services sector from what I understand, which is less subject to overseas competition. When was the last time you went to SE Asia to get a haircut, or visit a spa? If copper is 50% cheaper to produce because of rich chinese deposits mated with leading edge production technology deployed in China, then the Yaun gains value vis a vie the first world currencies. But also, the lower cost trickles thru the production chain for products somewhat dependent on copper- inducing deflationary forces in various geographic areas and sectors of the market. One thing came to mind which I keep forgetting to mention. Total factor cost. The decrease in primary material costs won't trickle entirely to the end user. May go unnoticed due to the small amount of total cost represented by the primary material in the final product. This doesn't entirely address your post, but sort of includes most of what your and other posts stirred up, I think.