Unfortunately this reminds me of the terrible economic policies of
the late seventies when we saw gas prices higher than now and the
death of MG, et al. permanent stagflation was what the democratic
think tanks called it, I believe Jimmy Carter used the term
malaise.....
Only time will tell if this is a short term decision or if long term
stupidity is on the way.
It irritates me because it drives the cost of MG parts up!
On Sep 22, 2007, at 1:00 PM, mgs-request@autox.team.net wrote:
>
> Message: 1
> Date: Fri, 21 Sep 2007 11:05:18 -0700 (PDT)
> From: David Breneman <david_breneman@yahoo.com>
> Subject: Re: [Mgs] declining dollar
> To: mgs@autox.team.net
> Message-ID: <285692.99378.qm@web42106.mail.mud.yahoo.com>
> Content-Type: text/plain; charset=iso-8859-1
>
> --- DON SCOTT <rowdon@sonoma-county.org> wrote:
>
>> I think we as Americans may see more and more of our treasures
>> plucked
>> away by foreigners. At least we were able to buy cheap shirts from
>> Taiwan and bargain plumbing fixtures from China for several years
>> while our industrial base was dismantled.
>>
>> Anybody have any comments on this subject?
>
>
> That assumes that the value of the car is fixed in relationship
> to the value of the dollar, a faulty assumption. Try asking this
> question: Will a declining dollar mean that foreigners will come
> in and pluck away our gold bullion? No, because the value of
> all currencies floats in relation to the gold, the MG, or any
> other physical asset. What it does mean, in the long run, is
> that we're in for a spell of inflation as employees begin to
> demand cost of living adjustments (remember those?) to their
> salaries as the price of everything begins to inch up.
>
> This was a very foolish move on the part of the FED, and it
> really makes me question whether Ben Bernanke is insulating
> himself enough from political pressures. The rate decrease
> was obviously an attempt to ensure a softer landing for all
> the idiots that bought houses they couldn't afford with
> interest-only or variable-rate loans, and that is behavior
> the market should *punish* not reward. If you speculate
> in real estate, or any commodity, you should do it at your
> own risk. So now all of us are going to get to bail
> those bozos out through the diminished buying power of our
> dollars.
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