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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Riskmgmt who wrote (10320)	10/20/2006 12:17:46 PM
From: energyplay	Read Replies (1) \| Respond to of 217979

The US Dollar has been overvalued for a long time. Under or Over valuation prodcues sub-optimal results and some long term problems. The high dollar has meant the export of US jobs & business activity to other developed nations, like Japan, Korea and some parts of the EU, like Ireland. A high dollar makes oil imports too cheap, reducing oil exploration in the US and encouraging the buying of low mileage SUVs by people who don't need them. Once those SUVs are built and bought, they don't leave the fleet for many years. If the USD had not been as high the past few years, Detroit woul dbe selling about a million cars a year more - that would really help thier finances. A slightly higher gasoiline price would mean the fleet is mor efficent, which would recuce the effect of gasoline price swings on consumer spending. An excessively low US Dollar would mean the retention and expansion of lower value jobs and sales of assets at low prices. Remember when the Japanese bought Pebble Beach and par tof Rockerfeller Center ? A lower than normal USD would also make it harder for US companines to invest abroad.