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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: RetiredNow who wrote (367511)1/20/2008 12:29:49 PM
From: bentway  Read Replies (2) | Respond to of 1571401
 
You've got it pal. Bushenomics is allowing foreigners to Hoover our wealth out, then they turn it around and buy our assets at fire sale prices. We're the new Spain. All that's left now is for our Armada to be sunk.



To: RetiredNow who wrote (367511)1/20/2008 1:14:30 PM
From: Road Walker  Read Replies (1) | Respond to of 1571401
 
So as we experience inflation, those other countries may be experiencing deflation. Or is the demand and supply picture getting pressured enough to more than offset relative currency gains?

Is my logic sound?


One little chink in you logic imho. Yes we are getting inflation but the amount 'they' import from us (vs everybody else) is so small that that doesn't produce significant deflation for them. The increase in demand more than offsets that.



To: RetiredNow who wrote (367511)1/20/2008 11:29:56 PM
From: tejek  Read Replies (1) | Respond to of 1571401
 
Yes, I hear you, but I recently read an article that up to 50% of the current price of oil can be linked to the decline in the value of the dollar. That is an interesting statistic, because what it tells us is that the U.S. is getting significantly poorer due to our really bad monetary, fiscal, and trade policies.

So my thought was that this is a zero-sum game, meaning that if we are getting poorer, then others are getting richer...if our currency is declining, then other currencies are rising and their purchasing power of worldwide goods and services must be rising with their currencies. So as we experience inflation, those other countries may be experiencing deflation. Or is the demand and supply picture getting pressured enough to more than offset relative currency gains?


If your currency is growing in value and your economy is sound, then the real danger is inflation, not deflation.