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

To: i-node who wrote (528561)	11/13/2009 4:35:16 PM
From: tejek	Read Replies (1) \| Respond to of 1575002

"Investors continued to flee the U.S. dollar and plow money into other assets like equities and gold, sending the metal nearly 2% higher for the week in which gold almost continually extended record highs above $1,100 an ounce. All gold participant eyes remain on the dollar as the metal's historically inverse relationship with the greenback has particularly heated up of late. Gold is considered a hedge against dollar weakness and more broadly as an alternative currency." online.wsj.com

To: i-node who wrote (528561)	11/13/2009 4:39:08 PM
From: tejek	Read Replies (1) \| Respond to of 1575002

> The feds also said in their last meeting tightening is a long way off. They HAVE backed away from their earlier statements but only because the economy is so weak they're afraid to tighten right now. Of course. They don't consider inflation to be an immediate threat because the economy is weak and deflationary. If they thought it wouldn't wreck any chance at recovery they'd be doing it now. Duh! > American businesses know damn well that a cheaper dollar makes it easier for them to sell their products overseas. Did you ever hear of a "trade deficit", genius? Do you have any idea what it means and how it is affected by a cratering dollar? Yes, a weak dollar makes foreign products more expensive. That encourages Americans to buy American over the long term. It also makes American products more affordable to foreigners. Over the long term, that should help the trade deficit to lessen and create American jobs. Short term, it can lead to higher trade deficits which is offset by the job creation.