Actually, I am not worried about the US debt. That is the part of the story that I did not quite agree with. My points were specially the parts I underlined.
As you say, currency values are relative. They are not just relative to each other, but also relative to hard goods and commodities. Over the past few years, USD has dropped a bout 40% against Canadian dollar, about the 35% against Euro, almost 33% against gold, nearly 67% drop against oil, etc, etc. The trend is quite clear, no matter what measuring stick you use to look at USD...but what bothers me the most about USD is more fundamental. It is the lack of US competitiveness in almost every category but the very high tech. No politician will ever admit this because they don't want to take responsibility for it. But to see this clearly, go back in history as long as you want and tell us when was the last time US had a trade surplus excluding aerospace and military goods. I think you will find the answer quite shocking.
BTW, if they ever let you out of the bag, will you come out alive or dead? How is the universe between the two worlds? |
