The dollar, weak or strong

Chief Executive, The, May, 2005 by Ronald DiLiddo

I do not agree with your opinion on the current exchange value of the dollar ("In Defense of the Dollar," January/February 2005). Taking a long-term view, what is happening to the exchange rate is consistent and appropriate with the trade and current account balance.

Over the long term, the market will adjust to the appropriate level to make our imports, exports and assets appropriately valued. Of course, in the short term government intervention can cause major dislocations.

I also disagree with your comment about the yen. The yen was overly weak in the 1980s, suggesting a more competitive Japan than really existed. With its devaluation, Honda, Nissan, Toyota and others decided to move manufacturing to the U.S. creating hundreds of thousands of direct and indirect jobs. Actually, the revaluation of the yen did exactly what it should have done.

Finally, I disagree with your opinion that Americans will buy that BMW at any price. Those with means have the ability to buy what they want because they are smart about their purchases. Those that do not match desire with means are short-term buyers anyway.

Ronald DiLiddo

President

Jiffy-tite Co.

Lancaster, N.Y.