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To: LLCF who wrote (53706)12/4/2007 1:24:19 AM
From: roto  Read Replies (1) | Respond to of 78433
 
the unfortunate omission in your argument is the inability and/ or unwillingness of the U.S. to partake in the stability of it's own currency.

but as you imply, the 'central banks' of foreign countries can always buy more US$ therefore strengthening (usually) the dollar from whatever threat that presents.
then again, the foreign debt holders are becoming increasingly uncomfortable with added US$, instead of directing their investment else ware, put to a better use as they deem fit.

in regards to Airbus, world airplane sales are quoted in US$ but the Airbus costs are in EUR$. problems would not exist with parity of currency, but since the US$ has tanked it has put a heck of a squeeze on Airbus's profits resulting in loses (be advised that US$ currency depreciation is only one of the many Airbus's problems).
in comparison, Boeing, ever vigilant in regards to foreign government subsidies to it's competitors, enjoys indirect subsidies of a sort that is not readily identifiable as an outright public subsidy.

John