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Politics : Don't Blame Me, I Voted For Kerry -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (24784)	5/23/2004 10:46:11 AM
From: Bearcatbob	Read Replies (1) \| Respond to of 81568

"US exports will go down, but raw materials costs will also go down, DRAMATICALLY, starting with oil, and consequently profit margins should go up." What - please explain. Again - world materials are priced in US $ and goverened by the law of supply and demand. World demand is high because the sky is not falling - despite what y'all want everyone to think! if the US $ were to rise the price of commodities in Euros would fall and demand would increase and the prices rise. Europe - with its wonderful array of leftist governments - is one of the weakest economic regions of the world. Think it through Lizzie - get off the party rant~!

To: Lizzie Tudor who wrote (24784)	5/24/2004 8:14:15 AM
From: lorne	Read Replies (1) \| Respond to of 81568

Lizzie. You said....." US exports will go down, but raw materials costs will also go down, DRAMATICALLY, starting with oil, and consequently profit margins should go up."..... IMO. Without exports you will have a trade deficit. With raw material prices going " DRAMATICALLY" down you have a situation where you can produce products but can't sell them to the rest of the world because of the high dollar value and this is what happened as a result of the clinton strong dollar years. Production in USA was way up but so was the inventory. The shelves full of products you can't sell. It's all about trade. IMO. during the last half of the clinton strong dollar years about the only thing that got exported was inflation. You said...." The fact is that we had a strong dollar policy all through the 90s and the economy was GREAT."..... This is not true, in 1995 there was a sort of a currency crisis because of the low value of the US dollar other countries complained about this and clinton's administration responded. You said....." Ever since Bush came in all these economic maladies that we thought we had beat, like INFLATION, have reared their ugly head. I disagree, the Bush administration inherited what had to come from the strong dollar policy of the clinton administration. If gore were president the same thing would have occurred with the economy. You said...." The best medicine for this economic mess is just do the opposite of whatever the Bush advisors are calling for. "..... IMO then you would have massive deflation. Real bad.