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Old 04-20-2011, 05:00 AM  
TheMaster
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Join Date: Nov 2003
Location: Prague
Posts: 2,732
Quote:
Originally Posted by $5 submissions View Post
Anyway, let's hope it doesn't continue to erode further cuz many commodities move counter to USD movement. USD sinks, oil goes up. Oil goes up, food prices go up (due to petrol-based fertilizer prices going up). No real clear solution short of the US getting its fiscal house in order--good luck with that. It's got an entitlements house of cards to keep up--with more and more debt
it's because they are denominated in dollars, so if the dollar goes down it raises oil prices, but a raising oil price also pushes the dollar down further, vicious circle

entitlements are not the problem, compared to other Western countries, the US spends a low percentage of it's GDP on entitlements, Medicare has a 2 trillion surplus, Medicaid yes that needs some fixing

just bring back the tax rates and military spending (up 80% the last decade, not even counting the wars) to where it was at the end of Clinton and most problems would be solved
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