Klarinet Archive - Posting 000288.txt from 2007/09

From: Jim & Joyce <lande_family@-----.net>
Subj: [kl] EURO vs. US Dollar
Date: Sun, 30 Sep 2007 08:59:29 -0400

Walter wrote:
> Here's something real to be concerned about.
> The Euro is now worth $1.4219.
> On June 12, it was $1.3295
> On January 1, 2006 it was $1.1842.
> From Jan 1, 2006 to Sept 28, 2007, that means a 20%
> increase in the value of the Euro, or from the US
> perspective, a 20% drop in buying power.

Concerned, yes. Surprised, No. The massive tax cuts
of several years ago, combined with a war financed with
debt, has been the fiscal equivalent of simply printing
money. Eventually it moves the exchange rates. Changes in
the exchange rate represents a hidden tax increase -- a tax
on everything we import. Didn't your congressman explain this?

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