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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (18920)	9/1/2003 1:14:13 AM
From: E. Charters	Read Replies (1) \| Respond to of 39344

On the other hand there is plenty of it (US currency), and it costs less to pay back, as it is getting worth less and less (in your home currency) every day. So it makes it easier to pay back loans where you have a domestic earning component. Normally (poorer) countries like to deflate their currency against foreign currency to make it eastier to balance trade , as foreign loans are really paid back in trade, not in cash. .. First you have to make the cash, which you make with trade .. Bretton Woods tried to make it harder for them to do that. On the whole, in the US's position, a weak dollar makes it easier for them to survive. It (currency devaluation helped Canada, which is raw material exporter, immensely, but has led to trade wars with the states, where subsidization is claimed. The real subsidy is the difference between the US and Canuck buck. The agricultural and forest products industry is no more protected than similar European and US industries. There are just a different set of circmstances surrounding access to materials, distances, weather, and volume, requiring vastly different government policies and regulations. Even our rail rates were adjusted for a 100 years to assist the transportation of grain across wide expanses of country on a single track. This was called the Crow Rate. Grain moved in Canada east west at a loss to the transporter. (CP and CNR) It would have had to anyway, because the wheat board, a government monopoly buyer, has kept grain prices low for decades in order to use grain trade as a political weapon. Ditto oil, and iron ore. EC<:-}