Somebody may have noticed that it seems I'm in a monologue or talking to myself lately. Not really! Some people are reading and expecting to read more often from me ---as they told me. Just excuse me and skip this post if, you think, it's not helpful to you...From time to time, I answer some E-Mails, and from time to time, I also post them here to share fellow threaders my thinking about subjects related to Investments. Here's my take about the impact to our AMAT investments ---of those Currency problems in the Far East. Inflation, in a controlled manner is Great (Deflation is Bad in that jobs go out of the country---into countries having Inflation. Deflation will only enrich further those already Super Rich). Here in Silicon Valley for instance, Inflation during the Carter Years, made people more productive than before. Back to the Far East, and I quote:
"...Analysts are divided on their views about the impact of Inflation in the Far East. It's a bit murky and we need more time to see the over all picture. One thing is clear, though, there's a big change and we (as U.S. Tech Companies) can take advantage of this change for our benefit...
I understand we don't export much to them but we do buy cheaper Electronic products from them. Now that their labor force becomes cheaper than ever, we who have manufacturing facilities there could produce cheaper products in there. I know many of us will be expanding our operations there in the near future...
Inflation, if not too much, is good. It makes people more productive. In the country of my birth ( the Philippines), people coped with Inflation (the exchange rate in the beginning was 2 pesos to a dollar, then became 4 to a dollar, 9, 27 and now 32 to a dollar) by going out of the Philippines to work and earn dollars which they sent back to the Philippines to establish businesses of their own. As a result, there is now a so called middle class that only one can dream of before (including me who have left the country 23 years ago)...
Actually, buyers of Semi-Equipments from Japan, Taiwan, Korea and other more prosperous countries like the U.S. that have operations in the Philippines and other Far Eastern countries will only benefit from those currency problems..." |
