paulsjj

When Will the Dollar Snap-Back?

Sombody has to buy the stuff...that my beome problematic.


On Oct 17 07:41 AM LilBob wrote:

> I don't know if I'd use the term "snapping back" but there will clearly
> be a "race to the bottom" in terms of currency valuations as the
> US is still the ultimate market for many consumer goods. Don't forget
> that much of China's wealth came from them supplying goods for our
> K-Mart, Wal-Mart and Target stores. Without US discount retail to
> use as an economic crutch the Chinese will have a much harder time
> managing economic growth, and they will do everything they can to
> keep the Yuan relatively weak. The US is still a leading producer
> of high end technology goods-such as manufacturing control systems
> and medical imaging equipment-and high end consumer goods-premium
> apparel, boats, riflfes, etc.-advanced manufacturing countries like
> Germany and Norway are also likely to attempt to manage some deflation
> of their currencies so as not to be priced out of competitiveness
> in those markets.