SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Precious and Base Metal Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Bearcatbob who wrote (20581)9/16/2003 9:06:01 PM
From: LLCF  Read Replies (2) of 39344
 
<If one looks long term at the health of the US economy versus that of Europe how can anyone be so down on the dollar. The current pain of the creative destruciton from the recession will lead to an economy that evolves. Germany and France are simply unable to do that. Who would you invest in?>

There are several points:

1.) The analysis needs to be dynamic, not static. There is tons of reform potential in Europe with possible release of value. Not even close in the U.S. where, if anything, one can argue that there is lots of potential for a backlash and a retaking of labour's share of the economic pie.

2.) The dollar is just a piece of paper... if it is printed at a faster rate than other pieces of paper, it will [ceteris paribus] devalue vs those.

3.) Continuing with #2, the dollar has been accumulated as a reserve asset... something to hang onto... this has held up the value over time. There has been much written about the increase of dollars in reserve... ie. a potential flood of selling... OR SIMPLY A SLOWING OF ACCUMULATION... both would lead to lower dollar with current account situation.

ie. the arguement about or 'great economy' is only a small part of the equation. Remember also that the economic statistics probably overestimate US growth and understimate eurozone growth.

DAK
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News