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Strategies & Market Trends : The coming US dollar crisis

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To: TobagoJack who wrote (32046)11/12/2010 10:33:46 AM
From: robert b furman  Read Replies (1) of 71406
 
Hi Tobago,

Well one positive event with a low Dollar ((I think far too few discuss it) is foreign money is coming to the overbuilt commercial market,that a year ago was the next shoe to drop.

We have averted that and the excess inventory is being absorbed.

There are many charts that show the Dollar is putting up a pretty good fight and not wanting to revisit to 08 lows.

Bernanke may well have jawboned the world with openly discussing QE.2 and never pulled the switch.

G20 is getting squeezed by US to agree that if your trade imbalance is unsustainable currency valuation is needed.

Having worked for GM in my earlier days - I was amazed at how the government allowed such huge market share losses,much of which is currency related.

Toyota - the perfect car company is now having troubles with the yen equalling .80 -.85 of a dollar vs the last 3-4 decades of 1.0 - 1.2.

It is amazing to buil in nice extras with a currency adavantage of 35%.It buys more than quality - extra content.Now that the dollar yen has reversed they find problems decontenting and maintaining quality.

I wonder if it is coincidental that the government now owns a big slice of GM that we have a competitive Dollar?

It is an interesting chnage in foreign trade balances.

We need more of that.IMO

Bob
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