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PostRE: THE DOLLAR: The Apocalypse - Oh, what a difference 100 days makes! (Tor Guimaraes) (John Eipper, USA, 11/09/05 2:02 pm)
Tor Guimaraes writes: I am happy that Randy Black can say that the dollar is strong. Of course that only means Americans can buy more foreign goods for less and our exports will cost more to foreigners. The dollar strength is directly related to the Fed raising interest rates to fight inflation. That, in turn, is reducing the value of the real state sectorm which is very important to the American consumer. Also, it has reduced the cost of commodities which are quoted in dollars. So far so good, but Buffett and other dollar bears might still be right in the longer run, since the Fed is caught between having to raise rates to fight inflation and keeping rates low to stimulate the economy. Right now inflation is the bigger concernm and all is fine as long as our economy is strong. If the economy weakens and the Fed has to lower rates, the dollar will go down. So, please go shopping.
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