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Posted: 4/2/2006 9:14:51 PM EDT
This is speculation on my part, but it's based on research. Dig for yourself, I wonder if anyone will overturn my ideas on this topic.

1. Illegal aliens work for cash and then export that cash to other nations. In the other nations, the indigenous types will exchange dollars for local currency. The net effect of this is to export inflation to other countries. If you were to take Mexico for example, you could track billions of dollars being sent to familia in Mexico where the dollars are exchanged for pesos. This keeps the peso down and the dollar up. Also, we buy oil from Mexico (yeah I know, I have a one track mind) with dollars, not pesos. Again, this exports inflation from the US to Mexico.

2. Increasing the labor supply drives down wages, so capitalists get cheaper labor. Whether you think this is a good thing or not, that appears to be the effect. As labor rates go down, capitalist return on investment goes up.

Any comments or suggestions on these two ideas? I think both are pretty sound. Kerry with his $300 million fortune wouldn't change things, and GWB with his God knows how much certainly isn't all about the common man. Both of them want the dollar strong and labor weak.
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