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.

History of the Dollar's Devaluation

I would be happy to buy American if I could find anything made in the USA.
BTW why is the purchasing power of the $ a secret.


>overwhelming majority of Americans who buy American-made products in America, your dollar will be worth just as much tomorrow as it is today<

Expecting Hyper-Inflation: Fed Chooses to Monetize America's Debt

Maybe the Fed thinks the Treasury won't be able to sell all the notes and bonds it needs to issue so the Fed is picking up the slack. Underwriting mystery debt with mystery money...how exciting.

Deflation: In Need of a New Definition

I've always thought the the terms "inflation" and "deflation" are deceptive. They subconciously make one think of mysterious hidden forces that are uncontrollable. They draw attention away from the dollars in our pockets and our savings and investments. The 1913 dollar buys less than 0.05 cents of stuff today. The dollars in our pockets have devalued(inflated) that much. Revaluation (deflation) is the better term. The purchasing value of the dollar should be maintained by the government over time.