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To: yard_man who wrote (629)	2/5/2003 7:10:14 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 1210

weaker dollar == inflation for imported goods it's not this simple, and the reason it's not so simple is why stuff at Pier 1 and Wal Mart is still so dang cheap. you need to look at who are trading partners are and what their currencies are doing. the two partners who have seen huge increases in their trade surpluses against the US are China and Mexico. China keeps the renminbi at fixed rate against the dollar, and the peso has been smacked big time. thus no inflation on our increasingly important partners. one has to look at a more complex picture, where the countries seeing appreciation against USD are actually being crowded out by others who have maintained cheap currencies against us. i think the bigger effects of dollar depreciation are going to come in the form of higher interest rates, which will bite the consumer in the ash.