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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (22104)	11/3/2004 12:46:59 PM
From: Sun Tzu	Respond to of 23153

>> Can't help but have massive deficits when you are building up the military and engaged in a war. Debatable, but given the political reality in America, I am willing to agree. >> The USD at an all time low is an objective of the current administration anyway. I also agree. I just don't think they have really thought it through. And even if they did, there were better ways of going about it. Also a falling dollar is the greatest tax grab one can impose on America. So I am not happy about it. >> A low dollar will assist in creating the environment for them to better afford our products. Again, no arguments here. But think it through a bit more. The parity you talk about implies with it the parity of standard of living. Take into account the worker mobility and market liquidity, and you'll see that the better way to lower the dollar would have been to go out shopping around the world than deficit spending. 2-years ago, 1USD was about 1.65CD (Canadian dollar). You could go up north and buy a good chunk of Canada on the cheap. The transaction would in turn increase the value of CD and lower the USD, making it even more profitable in the long term. Now the opposite will be true. >> The democrats are out of touch with main stream America. Partially true. They still got nearly half of the popular vote. IMO, president should be elected based on popular vote, but I don't want to get into an argument over this. In any event, I'd say a candidate who can get 51% percent of votes in both New York and Texas is on the right track. Neither party is doing this now.

To: chowder who wrote (22104)	11/3/2004 12:55:37 PM
From: bull_derrick	Read Replies (3) \| Respond to of 23153

Dabum regarding the weak dollar, the news media paid little mind to George Soros selling the dollar to try and hurt Bush. It takes more weak US dollars to buy the same BBL of crude oil than if it were strong US dollars. While crude has gone up over the past year, it's gone up far more in US Dollar terms than in Euro terms, which was the idea that George had in mind. We swung from .85 up to 1.24 the other day which is about a 50% currency swing over the past few years. Of course, the other components are a lower US interest rate from the Fed and larger trade surplus imbalances. The wild card on the last point is China's fixed currency rate to the USD. The Yuan would strengthen if allowed to float. The administration needs to put a hard press on China to allow it and that in turn will help balance out the balance of trade over time. I read a few months ago that Wal-Mart now accounts for 10% of China's exports and gets priority at its docks because of it. If the Yuan were floating and the Chinese products became 20% more expensive, I believe it would affect product mix at the retail level.