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

To: GROUND ZERO™ who wrote (662980)	11/29/2004 6:42:38 AM
From: E. T.	Read Replies (1) \| Respond to of 769670

"... this is simple mathematics, did you miss that somewhere along the way in school?" I guess I did, because I never realized that when the cost of raw materials to industry increases and oil and gas prices rise that it is actually a good thing for the economy. Oh yes, so then interest rates won't rise to prop up the dollar because a lower dollar is a good thing, hmmmm. I didn't know that.

To: GROUND ZERO™ who wrote (662980)	11/29/2004 7:42:11 AM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 769670

"the weaker dollar makes our exports more attractive to our foreign trade partners, as a result they buy more of our exports" Nice theory... but it hasn't happened yet in recent years. Also: this DOES NOT apply to China, because they've pegged the Yuan to the dollar... and several other Asia block countries also have either official or un-official pegs (and Japan intervenes massively to keep the Yen down... largely because they must compete with China's exports --- which are kept artificially cheap by the non-free-floating YUAN.) The VAST MAJORITY of our trade deficit is with China and Japan --- which is why the theory you cite hasn't affected the deficit... because we don't have free markets with them.