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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (411949)	6/5/2003 7:23:02 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 769670

Re: "I suppose its due to our AWFUL trade imbalance with China, some would say "our loss is their gain" Others, Like Abraham Lincoln would say, "I got this fine Chinese computer and in exchange gave them those paper greenbacks, whose gotten the best deal?" >>> Good point. >>> Just so long as you remember that monetary devaluation will lead to inflation in the economy (eventually). >>> And, if foreigners 'wise up' and demand higher yields to buy our bonds... that impact could be rather sudden. >>> I've written before that the 'dollar devaluation' of the last year and a half won't do much for our trade imbalance - because it has only been against the Euro, and we don't have a large trade imbalance with Europe. >>> China 'pegs' it's currency to the Greenback so, when we drop, they drop - and their export advantage remains the same vs. the US, and increases along with ours vs. Europe. >>> Taiwan, Malaysia, Singapore, etc., also peg to the dollar (if unofficially), and Japan actively intervenes to keep the Yen down... so the dollar dropping vs. the Euro won't do much for US trade.