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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (5320)	3/21/2008 7:31:16 AM
From: Real Man	Respond to of 71475

That didn't work well - the cuts and keeping rates too low fueled a housing bubble and "manufacturing" around it - homebuilders (they ARE counted as manufacturers), while other manufacturing jobs and even customer support jobs got exported overseas due to labor arbitrage. Current account deficit kept climbing higher as a result. A complete mess.

To: RockyBalboa who wrote (5320)	3/21/2008 9:11:11 AM
From: dybdahl	Respond to of 71475

I have no clue - I'm here to learn :-)

To: RockyBalboa who wrote (5320)	3/21/2008 9:39:20 AM
From: The Wharf	Respond to of 71475

Commodity prices must have something to do with product prices so there of the weaker the currency the higher the cost of the commodity unless it is internally available. That too is questionable for one would think that Canadian export would be going up and beyond because it is a nation rich in natural resources. The problem is Canadian wages are high so ti offsets the benefit of the natural resources. Then i think your internal wage scale has a great deal to do with your product end costs. That and taxation related to corp. Internal taxation that benefits all is one thing but if you have taxes that play heck on earnings as well as competitive export those added costs reduct competitive in the world market. Export then must be very fine tuned price wise in order to compete. I do not know if this means protectionism is some sort of weird answer but it sure appears that the lower currency is just a minor part of advantage of export.