My family, friends, co-workers...all American. Not one of them has had a negative impact in their lives because Euro hit 1.36 in December of 2004. If it hit 1.46, they still would have no idea. You claim the average american actually knows the EUR/USD rate right now? Or that they actually feel a negative difference because of it? Shall we do a poll?
i love it - bernacke
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My family, friends, co-workers...all American. Not one of them has had a negative impact in their lives because Euro hit 1.36 in December of 2004. If it hit 1.46, they still would have no idea. You claim the average american actually knows the EUR/USD rate right now? Or that they actually feel a negative difference because of it? Shall we do a poll?
Not to step into the middle of this one, but the dollar index (DX) is a better harbinger of bad things. It's a mix of many currencies and DX is looking pretty unhealthy.
That doesn't mean anyone will care for several years down the road. When HDTVs, PS3s, and automobiles become unaffordable (much like gasoline this year), people will start to notice and care.
You're absolutey right - at that point, people will certainly care. They don't care if the dollar tanks, they care when items become unaffordable.
Now let me ask you the flip side of the coin. What happens when they can no longer afford to buy those things, and don't? Ie, what happens to those who sell them?
Now let me ask you the flip side of the coin. What happens when they can no longer afford to buy those things, and don't? Ie, what happens to those who sell them?
Please name one dynasty from any part of history that did not rise & fall thru the exact-same cycle we see U.S. traversing in its time.
I can list at least two dozen dynasties thru all continents that built far greater empires than U.S. ever has, and all are dead & gone.
What will prevent this country from repeating the same course of history all others have since beginning of time? Is our country on a path of organic growth & wealth, or on the decline of debt and excess?
All dynasties have traversed the curve from rise to fall without exception. What will save the U.S. from this fate?
I can list at least two dozen dynasties thru all continents that built far greater empires than U.S. ever has, and all are dead & gone.
What will prevent this country from repeating the same course of history all others have since beginning of time? Is our country on a path of organic growth & wealth, or on the decline of debt and excess?
All dynasties have traversed the curve from rise to fall without exception. What will save the U.S. from this fate?
I'll be bold to say the average American -will- be impacted by US dollar valuation.
I will also say they may not know the rate or even why they are impacted. They may not even know they are being impacted - but they are.
You are trying the good old argument of 'no safe place to hide'. I agree, if you think its wise to hide in south korean equities as a perfect hedge to a weak dollar. But that argument is flawed, because the people arguing it are using poor and overexposed investment vehicles as hedges.
The answer my friends is foreign denominated currencies and bonds of countries with balanced trade relationships (or balanced to the point of being able to handle a global slowdown without affecting the payout quality of these bonds).
Remember, there is ALWAYS a safehaven or profit center. You just have to see that for every loser out there, there is a potential winner.
Yeah, I agree with the statement that dollar reflects upon the commodity prices. I had read in the CRB 2006 edition, that the run up in prices of commodities was some what influenced by the dollar decline. As you know, the price of oil and other commodities are usually priced in USD. Inflation up = commodity prices up....NOW thats what i read in CRB.
Now lets look at the statements about US becoming 3rd world country.
First of all have you ever visited 3rd world country? Where people have no access to clean water supplies. Where water scarcity is killing of agriculture? Where literacy rate is around 20%? Where the inflation rises faster than the regular wages? Where warlord are spending all of the money on weapons instead of food? Where people die from goddamned diarrhea???? Come on man US will never ever ever become 3rd world country. Not even if Lenin and Marx will rise from their respected graves and start to run the country in communistic kind of way.
Cheers, before you go to sleep today thank the lucky stars, your god, or whatever you pray to that you are living much better than other 85+% of the world.
if you really want to see how rich you are........ http://www.globalrichlist.com/index.php