Acastus
csmith476
Rookie
Posts: 40
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« on: November 04, 2004, 01:16:03 PM » |
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There is no crisis here. A falling dollar makes our goods and services cheaper for the rest of the world to buy and more expensive for us to buy theirs. In the short term, therefore, it helps to reduce the trade deficit.
Further, a falling dollar is not all that inflationary unless there is no local source of supply for the foreign goods or services or there is no substitute. This doesn't apply to some commodities like oil, however, because oil is traded in dollars anyway.
As for the ridiculous charge that Bush has single handedly debased our currency, we should give that the consideration it deserves. None.
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