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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (83369)	8/18/2008 12:21:14 AM
From: mishedlo	Respond to of 116555

STOP THE POLITICS Everyone... I have been gone since Thursday. Several people emailed me while I was away complaining about posts on Bush, politics, etc. I ask everyone to get back on Track. I answered a question I saw Sunday evening from the Vet but if there are other questions out there for me, I may have missed them. Mish

To: mishedlo who wrote (83369)	8/18/2008 11:36:05 AM
From: The Vet	Read Replies (1) \| Respond to of 116555

Thanks for that explanation Mish. I see the logic but it seems to ignore the fact that a higher dollar is detrimental for exports and the earnings of the multi-nationals. So in effect what you gain on the swings (the lower oil price) you lose on the roundabouts (export earnings). Obviously the oil price drop is more immediate but over the mid term, export earnings must suffer. In the longer term the higher dollar simply reduces the incentive to produce at home and makes increasing imports more attractive; surely this can't be good for the US long term.