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Nov 18, 2007

warning: falling dollars ahead

Are you concerned about the falling dollar? Does it mean anything to you and me?

It does if prices have to get jacked up in order for companies to keep up with the declining value of the American currency. This is if inflation takes hold. We have not seen this hit us yet, because the fall in the dollar has been so swift.

For instance, take note of how the pricing difference on book covers regarding the Canadian dollar and the US dollar. Even though the Canadian dollar, or loonie, has achieved parity with the dollar these book covers have maintained the same pricing structure, which must be based on historical values. If the difference in currency pricing exists for a while, I suppose it's a matter of time before the methods used to determine these pricing structures catch up.

so is the falling dollar a concern to you and me? In this case, you just have to tell by the books cover...at least its price...
 
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