EUARTE

Asia: The Next Big Bubble

The effect of a China bubble burst is enormous. Brasil, for instance, has become to rely on China as a buyer of their resources. The United States and the EU are not buying much now and won't for a while. Even then they can not match the huge purchases by China. This could cause a dangerous crisis for the Real. The Real is over valued because of these Chinese purchases and the carry trade. The Real will lose it's value by a great margin.

The Dollar Is Safe for Now

A point of fact. The US$ is losing it's position vs the R$. Brasil may be 2nd world but is a powerful player in the world market. If the Brasilian currency is devaluing the US$ then something is really wrong.
It scares the h__l out of me. I live in Brasil but my income is from home in US$s. But even big companies have to worry. Take Avon for an example. It's biggest income is from Brasil. If the US$ falls in value here they can not bring home as much profit.

China Wants to Transfer Currency Risk Back to the U.S.

China;s real interest is not interest. It is the destruction of the US to a 2nd rate power. It is worth a lot of money to them. Destroying the US is much cheaper than the war they are planning. They would be even more intelligent if they remembered Napolean, I think, who said that one should leave alone an enemy who destroying itself. Sit back China and all will be yours.

Quantitative Easing and the Disappearance of Income

My instincs and a little college ed in eco tell me that we are in for it and real bad. The Fed continues to yell loud and clear that they do not have a real solution to the present mess. It seems not to have occured to them that perhaps doing nothing at this point could be constructive.

Geithner on Yuan: Misstep or Warning Shot?

Here! Here! Protectionism has worked in the past quite well. We keep referring to Smoot Hawley Tarriff laws but they were not the only time we did this. There was a need in our history several times to protect our infant and growing industries. We did this to good effect.

There is no reason that we can not protect our aging industries and give them a chance to come back home and/or modernize here. For me the greatest danger over the years has been the shipping abroad of our industrial base and the debasement of our currency. We have become a nation which makes little, low wages and a third world currency.


On Jan 23 09:57 AM MJJP wrote:

> I really see nothing wrong with implementing a Smoot Hawley Tariff
> which would protect a certain percentage of industry. Opening up
> our entire mfg base to the lowest bidder is suicide as we can plainly
> see. We produce nothing , our wages are in the toilet and as such
> our standard of living is dropping. Real unemployement as compared
> to the Great Depression is similar. I am not against free trade as
> long as it is fair trade. Tell those that want to enter our markets
> to clean up their act and enact clean water standards, sewage, safe
> labor standards etc. Then we'll talk.

Wednesday Currency Roundup

I well understand that all USD stories compare it with € and GBP. However, I wonder why the most powerful currency in world the R$ of Brasil is never never mentioned.
Please advise.
Thank you for great columns.