wcrxlp editorial collective

Is It a Stock Market Rally or a Dollar Devaluation?

A cheapening US dollar makes US exports more competitive.

The only area of the globe that needs US products and services is Asia. The S&P is just anticipating Asian demand responding to a cheaper US dollar.

As ancient Baby Boomers delay retirement to keep working, and Boomer progeny try to enter the work force, there will be more downward pressure on US wages.

Congress will continue putting downward pressure on US salaries.

Even the prices for US design, engineering, production, logistics, marketing, financial and professional services are becoming competitive.

When the dust settle, the US will be almost able to compete on labor costs with China.

The downward pressure on US wages and salaries will reduce federal tax receipts which will worry China even more.

I’d like to see a David Goldman chart showing the comparable correlation between the Euro and the S&P.