EUARTE

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's First Step Towards Bilateral Currency Swaps

The warning signs are quite clear. This is not good for America. However, Obama has by his silence shown that he has no real interest in saving the dollar. His legislation depends on a bad economy and some fear inside America. Outside of America he has no clear agenda. Lots of lip service and qute shows of leftist blah blag.

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.