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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (18153)	5/2/2003 11:46:52 AM
From: Ahda	Read Replies (1) \| Respond to of 81257

<Reuters Economy Bleeds Jobs as Industry Assailed Thursday May 1, 11:57 am ET By Wayne Cole NEW YORK (Reuters) - Surprisingly grim figures on U.S. manufacturing and jobs on Thursday showed the end of fighting in Iraq provided no immediate boost to the economy, suggesting drastic remedies from the Federal Reserve may yet be needed. > To the naked eye this means that if they drop rates they are giving you money for free almost. People give things away free because they have a surplus of them or they aren't valuable enough to charge a price for,. To the trained eye this means we are giving you all the opportunities in the world to create business but they problem is many of those people in business that are successful have pretty clear vision as to costs. .If you look at long range graphs of profit history in the US the profits of corporations have been decreasing since the late fifties. Part of that problem has been wages including legal cost have been increasing. This depletes the cash flow that returns to the corporation who normally would invest as surplus dollars permit With each successive interest rate cut we stimulate the economy in terms of profit that goes to the finance end of our economy. We increase debt and in doing so we hope for an increased appraisal of value on that which we taek the loan on. So we have debt and inflation running hand in hand in our financial business dealings. We increase costs each time we refinance. We do contribute to the financial sectors well being but the price we pay is that of inflation which reduces our ability to compete.in the world market. .Currency trading in the world market has little to do with the cost to produce within the area. Currency is traded though it does appear that if the dollar depreciates the cost to the cost in terms of other dollars decreases. If the cost to do business within the nation is to high profit is still the problem. . . A system such as ours that has high operational cost might find the dollar would have to be about .20 on the world market in order to appeal as an exporter If this occurred we would be in terrible shape as our companies are international as well as we rely extensively on imports.. So our inflation rate would sky rocket and darn near drive us over the brink. We can’t replace facilities to produce what we import over night. I have no idea what the average cost of financial administration per business in our system computes out to. I would guess our costs are very high as we are constantly rearranging the legal system. The period of time we would need to rebuild is not a short one so you are apt to find that the excessive debt we carry is too great. I do not agree with Hazel thoughts of Auto industry possible flourish as we here have a different brand of socialism our is our own financial system which is way to vast. We can easily see in figures that the financial industry has increased in dollar size while we have decreased in production. China supplies to the world she has a double plus of probable internally growth due to people count and poverty as well as external market potential, Her peg to the US dollar is very beneficial to her at thus point as the US dollar depreciates in value her products are less costly in other dollars. The same applies to all US business who are operating in China. their only concern is China limits inflation. The lady at this point in time has herself the best seat in the house as long as her government allows the free market system to carve its own course.