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View Diary: Can an electoral wave wash out a financial edge? (132 comments)

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  •  The Republicans (1+ / 0-)
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    have always liked a weak dollar policy because it helps balance out trade deficits by decreasing demand for imported goods while increasing demand both domestically and worldwide for "cheaper" American goods.

    There was some during Bush's first term, but it didn't really get going until after 2005.. Here's a purely anecdotal, but true story. I bought an European made musical instrument. I ordered it early in the fourth quarter of 2007. The price of that instrument had remained fairly stable due to the relatively small fluctuations in value between the dollar and the Euro. In fact things had been so stable the price of the instrument didn't rise for several years - yes, I'd been dreaming of owning a bass sax for years and I'd been "window shopping" all that time dreaming of the day I'd be able to buy one.

    When the horn arrived six months later the retail price had shot up by $3K (more than 20%) all because of the dollar devaluing against the euro. Thankfully I had locked in the lower price when I ordered the horn otherwise I probably wouldn't have been able to afford it. I did not go into debt for it either. I paid cash.

    There were definitely bumps during Bush's first term, but they were controlled and the effects minimized as much as possible. They started losing control during his second term because by then the pressures were too great.

    When the power of love overcomes the love of power the world will know peace. -Jimi Hendrix -6.0 -5.33

    by Cali Techie on Sun Jul 11, 2010 at 08:48:35 AM PDT

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