http://www.bloomberg.com/apps/news?pid=20601087&sid=a_4PcxlBMzzc&pos=5 A weakened dollar re-industrializes the US while negating industrialization in foreign countries....? More than one way to skin a cat ?
Doubt it. The $USD would have to PLUNGE... lose a huge percentage of its value to offset the low labor differential from Asia, India, South America.
.................................................................. Correct.....but is interesting that the foreign politicos are getting nervous about it.... Perhaps the bigger surprise is going to be the day that China and Japan have internal problems such that they actually have to sell some/all their US dollar based securities....and not buy them.... This could get interesting.... Julian Robertson has made this bet....
Re-industrialize? Was it ever de-industrialized? Don't confuse job destruction through productivity gains with actual output destruction in the manufacturing sector. Contrary to popular opinion, the US share of global manufacturing output has been stable over the last two decades.
..................................................................... Valid point..... The confusion lies within the "growth" required to sustain what is being expended....living beyond one's means.... This has become a built in US assumption.... Obviously the answers lie in fractional gains losses with respect to growth aspects.... ie A stock goes down because its products are mature and the opportunity for growth is very small....ie a utility company....leaves factors such as inflation to increase future prices.....
Seems other countries are still counting on the USA as a final destination for their products, so a weak $USD would be worrisome. Well, we've got a surprise for THEM... We're BROKE... SPENT IT ALL ... except what others (fools?) are willing to lend us.
............................................................ Exactly.....and will take out all the stops to continue to sell their trinkets....ie keep their currencies down.... ie Would Americans object if China devalued their currency by 50%......nope....they "WMT" would love it..... ......................................................... "Time" of actual economic change is the main factor.... The "Fiat Wars" are only just starting....
America will rebound... likely even flourish once again. But all of the people here now will be bankrupt, and America will be owned by others... as it flourishes...
......................................................................... Exactly.... When the currencies are relatively strong.....then time to buy US dollar assets on the cheap.... When the currencies are weak....then time to sell trinkets in mass.... The cycle continues and never ends.... .................................................................. ie Inbev buys "BUD"....how Un- American ? Budweiser owned by Non-Americans ? EURO trumping the dollar....the sole reason for this purchase....