You're missing the silver lining. Within a generation, at the latest, young Americans will be able to see the world and get paid for it. Store and laundry clerks in Shanghai. Condo painters in Dubai. Nannies in Rio and Mumbai. The opportunities will be limitless.
but that assumes that the market will start to abritrage this differences right away. the price level of a country can stay out of line for years, sometimes decades(just ask the swiss). The deustchbank is saying the dollar is 20% undervalued yet it could stay that way for years given the size of the current account deficit. the idea that the stock market is rallying because of a weak dollar is unprovable at best, the vast majority of investors are US based and they are not buying because their euros are worth more. plus most of foreign funds that comes to the US goes to fixed income
Mexican carpenters are going to be losing a lot of jobs over the next few years. Do you think they will go back to Mexico?
sad but it`s true.....this empire is history & will go down like Rome & every other world power due to political greed,corruption & debt....which has brought down every society in modern history.
In the past quarter foreign purchases of U.S. stocks have been at levels not seen in years. Likewise American purchases of foreign shares has been skyrocketing. Earnings of U.S. companies are clearly buoyed by a weaker dollar. More exports and for American consumers expensive imports. Helps corporations both ways. I've been trading a long time. There's nothing new under the sun. The dollar was exceptionally weak in '87 and '92. Strong in '84 and '99. It really makes no difference.
It's not that governments are too stupid to figure it out. After all, history is rife with example. It's just that they are SO greedy and dishonest, they can do nothing other.
no country has ever succeeded in bringing prosperity by debasing/devaluing its currency. if that was the case all the banana republics in south america would have been the great success stories of the 20th century.
This also puts the lie to those girlie laments of Democrats who cry that W and his party arenât for the little guy. History will bless Wâs fiscal policy. Just wait a decade or so for that verdict, when Americans start earning big tips waiting tables from Toronto to Tapei. And exactly where do you think the Phillipines would be without all those jobs in the Middle East that President Bush is helping our next generation prepare for?