Yen and Euro extend gains, media misinterprets
they continue to harp on benefits to multi-nationals
but one guy on CNBC forecasts higher interest rates
he TOTALLY misses the inflation effect though
he claims it will improve pricing power
NO WAY, NO WAY, NOT EVEN CLOSE
production costs will rise more than general prices
profit margins will not be ameliorated (helped) at all
inflation is horribly misunderstood in this nation
it is regarded as a commodity without location
so some inflation will offset the deflation
UTTER BULLSHIT NONSENSE IGNORANCE
the primary price inflation effect will be on production costs, material supply costs, energy costs
the primary price deflation effect is ongoing
any general systemic price rise effect will be moderate at first, but not keep pace with rising production costs
this is the signature of Phase #2 of the USDollar decline
if a rising Yen and Euro are good for the economy, why is the Dow reacting by minus 120 pts?
and last Monday last week, with the huge Yen rise, why did the Dow decline 150 pts?
no no no, rising Asian currencies are horrible for our economy
for every benefit, 20 harmful effects
/ jim
p.s. meanwhile, consumer confidence continues to drop
how will such confidence react to higher prices for Japanese brand products, such as Sony, Kenwood, JVC, Hitachi, NEC, Sanyo, Canon, Ricoh, Kyocera, Nikon, Fuji, Komatsu, Toyota, Nissan, Honda, Mutsubishi, Bridgestone, and more ??? |
