Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (10797)	5/7/2006 11:40:53 PM
From: E. Charters	Read Replies (1) \| Respond to of 78426

Their reason for a weaker dollar is the trade deficit. In this, the airheadedness is not so light. It is a delicate operation as devaluation is frowned upon internationally and it weakens an international medium of exchange, which is ironic. For years the US did not have to worry about implicit inflation devaluing the dollar as it was the standard of exchange, having replaced gold after WWII. This provided the US enormous buying power, which overcame the high prices of exports. This led, however, to outsourcing of manufacturing which has been going on since the 1970's. And finally to a weakening of the currency, which has come home to roost as oil gets more expensive and Asian economies get stronger. I dispute that high oil does not hurt the $$ rich. It hurts bad and causes economic panic. The outsourcing afoot for the past while years has been driven in part by high energy costs as well as high labour costs. I know of one mine in Canada that is closing because of energy costs and many wood and paper mills. EC<:-}