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joined: 10 Jun 2004 posts: 2180 location: New York
posted: 12:49 pm, Sep 04 2006 subject:
I hardly think 25% depreciation of the dollar from the euro is anything but significant. If it were 1.10 or 1.15 maybe but 1.25 is significant. =Peter= _________________ There are excellent websites to post inquiries concerning your family genalogy staffed by individual volunteers who do not charge anything but offer their knowledge to preserve family ties.
The Euro has maintained a significant percentage over the US dollar in the last 3-4 years. It has averaged 26-28% over the dollar, and that is very significant. It certainly hurts those who are relocating to Europe. I have studied economics, and the writers concept is accurate, but not his numbers.
joined: 10 Jun 2004 posts: 2180 location: New York
posted: 4:47 am, Sep 05 2006 subject:
What numbers are you talking about?? ==Peter= _________________ There are excellent websites to post inquiries concerning your family genalogy staffed by individual volunteers who do not charge anything but offer their knowledge to preserve family ties.
Borrowing (trade deficits and government budget deficits) is sustainable as long as a country is generating enough wealth to cover its debts. So as long as net worth is rising, the downward pressure on the dollar is limited.
In theory, he is correct, but I say his numbers are wrong, as in his chart. because he seems to overlook that the US debt is higher than it has ever been, meaning more spending and borrowing. Therefore, the US cannot possibly have their "net worth" rising. If the US net worth was rising, we would see a more valued dollar from $1.27 to $1.10 (as you said), not the opposite. He seems to be associating a steady decline of the dollar to equate a rise in net worth, and gives a chart to prove his theory.
You cannot have a rise in net worth, with a rise in spending and borrowing, which is currently what this Government is doing. The US is not generating enough wealth to cover their debts, and is why the debt is climbing.
joined: 10 Jun 2004 posts: 2180 location: New York
posted: 5:47 am, Sep 05 2006 subject:
perhaps he is relying on the infusion of dollars spent aborad coming back to the USA for Treasury bond investments giving us more "net worth".=Peter= _________________ There are excellent websites to post inquiries concerning your family genalogy staffed by individual volunteers who do not charge anything but offer their knowledge to preserve family ties.
joined: 10 Jun 2004 posts: 2180 location: New York
posted: 8:52 am, Sep 05 2006 subject:
That is too simplistic even though it makes sense since we import money in exchange for goods put us on top even though it is a debit..it just makes us vulnerable to outside forces which twitches our economic butts here in America.=Peter= _________________ There are excellent websites to post inquiries concerning your family genalogy staffed by individual volunteers who do not charge anything but offer their knowledge to preserve family ties.
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