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Edited on Sun Feb-17-08 02:48 AM by TexasObserver
The more the US dollar falls against the EURO and other currencies, the more it makes attractive the investment of foreigners in US properties. In other words, they're buying us with the dollars we send them for all the exports they send us. China and Japan, to name two, and the decline in the US dollar makes those investments in US real estate, for example, a better deal.
But your point is well taken about the role that the Bush Gestapo tactics, and how they have curtailed travel to the US, and reduced the US as a point of destination for conferences, educational meetings, and vacations. Foreigners know the horror stories of entering Bush's America. That needs to change.
The US dollar will likely continue to be weak this year against other currencies, because the monetary policies of Bush's FED chairman are designed to pump liquidity and credit into our system, and those actions, while they enhance the ability of borrowers to pay back loan and lenders to stay in business, also cause the US dollar to lose value against other currencies, correspondingly.
The trend will likely reverse once we have a Democratic president in 2009, although it may take a full year to reverse the dollar's decline.
The values you see in the stock market are inflated by the FED's actions, which have kept the DOW and other indices artificially high since last August, but at the cost of a devalued dollar.
Hope this helps. You're absolutely right about the impact on foreign travel to the US, but the investment angle is a little different than you perceived, as I have noted.
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