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To: Kayaker who wrote (80869)3/3/2007 4:48:45 PM
From: Webster Groves  Respond to of 206326
 
Commodity prices ....

Yeah I can read the theoretical precepts as well as anyone, but understanding the true rationale is different.

A commodity based economy "suffers" when the price for commodities goes down. OK I see that. But what about an economy not based on either commodities or manufacturing ? Should the value of its currency go up or down (relative to the currency of a commodity-based economy) when demand for commodities goes down ? That's the situation we face. The US dollar goes up when global demand for anything Canadian goes down. Why is that ? What does the US offer other than control of the markets ? The "market" says the US offers something. What is it ?

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