[TheForge] Price of steel & scrap-OT

Thu Apr 8 23:51:12 2004

With the large deficit, excess of imports vs exports, and low interest
rates, foreign  currency holders view the dollar as being less attractive.
It seems natural that the dollar will weaken making foreign goods more
expensive including the cost of foreign services. In theory this should help
reverse or slow the current trend.
I have read that some economists predict the U.S. must allow the interest
rate to rise to attract the foreign investment in U.S. securities which is
needed to fund the deficits.
What happens to this economy if interest rates go up?
Construction is hit first I would think.
 High interest,high oil prices due to OPEC restricting supply does not paint
a pretty picture for our or the world economy. I dont pretend to really
know. I still remember when I did not think the DOW would ever hit 1000.
If interest does go up, those close to retirement might fare a little better
if they have a nest egg in monetary assets vs equity. I thought this all
thru the go go 90's(I was not in equities) so probably a safe bet it wont
happen.
Anybody have a clue?
Thanks,
Bob

----- Original Message ----- 
From: <[email protected]>
To: <[email protected]>
Sent: Thursday, April 08, 2004 10:17 AM
Subject: Re: [TheForge] Price of steel & scrap

> In a message dated 4/7/2004 10:08:41 PM Pacific Standard Time,
> [email protected] writes:
> What no one seems to recognize is that the rise in steel and fuel prices
> >we are seeing , are in substantial part, due to the recent, deliberate
> >devaluation of the dollar. Bush may say that the national debt doesn't
> >matter, but..............Pete F
> >
> >Mike wrote:
> A good point. I think it is all of the factors put together. What they all
> have in common are short sighted, very selfish attitudes. Perhaps that is
where
> the expression "blind self interest" comes from.
> Mikey
>
>
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