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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: etchmeister who wrote (24784)	12/16/2010 9:29:09 AM
From: Sun Tzu	Respond to of 25522

>> My point was that US technology (which is extremely competitive) is highly discounted by a weak US $ I don't think the producers share your opinion. They see a weak USD as a blessing that improves their competitiveness and profit margins. Since the government often complains to the rest of the world that they are keeping their currency artificially low, I have to conclude that US government also sides with the producers. IF the US debt was not denominated in its own currency (as is the case for the rest of the world), then you'd see the market forces coming to the rescue to balance the situation. The currencies of the nations who buy our debt would appreciate and the USD would depreciate to the point where imports would be too expensive and exports cheap enough achieve a new equilibrium. Having short circuited the free market mechanism, we have created an unhealthy imbalance that will come to bite us. I will address your other point in a follow up post. ST