2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

STOCKTALK

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.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 375.93

-1.8%

Nov 14 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: TobagoJack who wrote (7024)	6/7/2006 12:11:17 PM
From: energyplay	Read Replies (2) of 217769

Hi TJ - I absolutely agree, especially on CAR PARTS. Note the new assembly plants in the US for Hundayi (cars) Toyota (trucks in Texas) and Nissan (Trucks, being expanded I think). Note also that one of the Toyotas has >75 % US and Canada content, vs. a Ford with only 60% US and Canada content. What will shift with a lower dollar will be purchases of European and high end (meaning Japan built) Japanese cars. Many Japanese parts cost less the equivalent US parts because of Japanese automation, and/or Korean / Taiwan sourcing. This meant the Japanese car makers had a cost advantage. Now with both US and Japanese car makers sourcing from China, the costs are the same. So final car cost will be driven by transport cost of the finished product and relative labor costs. So a devaluation would make US costs lower than Japan's or Germanys. Socks and Bras are not going to move back. That's gone. All the consumer goods we see at Wal-Mart will continue to come from Asia. That business was lost long ago, and is not comming back. There are many non-consumer items that we find in an industrial supply catalog, specialized sub assemblies, scientific instruments, etc. That's where the bulk of US manufactuirng is today, and it competes with Europe and Japan. A devaluation will make this sector more competitive. Sub assemblies that have high value parts are likely to move back, especially with higher interest rates. Why tie up a sub assembly with $600 in parts for 3 weeks flying it back and forth to Asia to save $25 in labor cost - especially if interest rates are climbing and transport costs are up because of higher jet fuel prices ? ********* Outsourcing selected parts manufacturing to China and getting some intellectual services from Indian etc. has allowed many US firms to put together a competitive value chain. Devaluation can help US competitiveness vs. Europe and Japan.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next