The original author seems a little bit ignorant?

USD depreciation is an inflationary force. It drives the wealth from middle class to rich class. (such as oil and commodities).

To average US citizens, the price rise will not be matched by salary increases so their savings and earnings will decrease.

He then talked about export. US has limited merchadise to export those days. US economy is largely based on service industry, many of them can not be exported.

Of course, Boeing will sell more airplanes, and Caterpillar can sell more machinary, but that is not enough to compensate the $$ that US will pay for the oil imports.

This gentleman probably is a half baked reporter, not even a half baked economist.

But, since FED can not tolerate deflation, USD will continue its projection to go to basement, in a 10 year time frame.

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• Agree with your comment on the author -tz2000- ♂ (58 bytes) () 10/02/2007 postreply 12:45:11