this gem from Bill Murphy:
<<Dr. Neville Bennett has served commentary at the
Man Ray Table entitled, "Yen's progress inexorable II
--update."
"A 20% change in prices between two major currencies
in one year is a colossal change. Japanese cars
selling in the USA, other things being equal, will
cost 20% more than a year ago. An American consumer
who was considering buying a $25,000 Japanese car a
year ago, will perhaps now baulk at paying $30,000
for the same car, and will buy another model. A
Japanese couple thinking of honeymooning in Hawaii
might baulk at a 20% increase in prices and travel
to the Gold Coast, Australia, or Christchurch, New
Zealand. Thus trade, tourism and services are
tangibly affected."
This is a wonderful dish and a very good read. The Yen
is sharply higher today against the dollar as the
Japanese appear to be willing to let their currency
advance further against the dollar.>>
1) Most Japanese cars sold in North America are manufactured in North America, thereby reducing substantially the cost of a rising Yen.
2) How can a Japanese couple baulk at going to Hawaii if their Yen will buy 20% more worth of goods and services?
Bill Murhpy and his gang appear to be with Alice in Wonderland<g>. |
