Currents of Currency Message Board

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Strategies & Market Trends : Currents of Currency

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To: The Wharf who wrote (124)	1/13/2012 12:03:29 PM
From: The Wharf	Read Replies (1) of 594

Union agrees upon a lower starting wage. Our wages became to high though when one is trying to pay bills it looks like they have dropped to low.. I think of currency transactions the fact the US dollar has increased in value and the other problem that the possible external interest in a US product purchase has just increased in cost. Assume I do not live in the US and I ordered goods three months ago when my currency was worth 70 US cents. If I assume today that my currency is now worth 80 US cents it cost me less to buy a product three months ago than it does now. I picked up an additional 10%t savings on product price because I purchased the product when the US dollar value was lower than my currency value was.. However truth is financial condition of the majority of the people USA has nothing to do with the international purchase of goods transaction it has only to do with the fact that US people can afford to buy and consume the goods... Cost of those products in terms of currency exchange as well as location does not equal same pay for same job. If you think in terms of China if she can manage to keep her yuan stable to her largest buyers, her currency poses no problem, her only problem is internal cost control. In maintaining stable, fluctuation caused by currency exchange.value is a non event.. Back to the problem of too high a National Debt Price paid for product in specific currency sits in that Nations bank. However, changes in currency value can appreciate or depreciate asset value. If I take an extreme where currency exchanged for another currency is now half the value it was the purchase price paid for the product is now worth half of what it was Of course the product has a depreciation attached to it but the depreciation of the currency has more to do with inflation.in value of another currency and little to do with what was asset value on purchase. The hedge decision of the corp treasury is just an additional cost factor carried by the product. There is set inflation in here as obvious course can be an attempt by a nation to keep value up. The commodities needs of a nation are of course less costly if currency value is high in the world exchange market. At this point product price is no longer the producers problem but the Nations involved in the exchange of currency the buying of one and the selling of the other. In this there is a cost which is collected in some currency and of course inflation somewhere. It is getting even more bizarre when one thinks in terms of labor cost where decreased cost of labor should add up to an increase value in currency as price of production is less. One human will ever be one human one human Labor value attached to the human differs One unit of currency in our present world system does not have a standard base from which to increase or decrease labor value.

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