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Strategies & Market Trends : Currents of Currency

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To: The Wharf who wrote (146)7/3/2012 12:15:34 PM
From: The Wharf  Read Replies (1) of 594
 
3 July 2012 Last updated at 05:30 ET Share this pageEmail Print Share this page

386ShareFacebookTwitter.China factory construction halted amid violent protests Residents in Shifang city were protesting over environmental and health concerns Continue reading the main story
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Chinese officials have halted the construction of a copper alloy plant in Sichuan province following violent protests by local residents.

Here one can see that stimulus stems from people who want a healthier environment. Currency that flows into the market place that is not the result of people value distorts free market value. When opportunity presents itself as in the environmental problem seen here the solution creates an increased cost factor but that cost factor has a positive impact on the economy as it increases jobs and is the physical proof of value of currency. When currency represents physical trade people value it also represents the conditions within an economy. Currency created by means of true growth in an economy is value It is not non valuable fiat created in an attempt to stimulate growth.

China Increased reserves at one point to decrease possibility of inflation. Then she stimulates to decrease possibility of slow growth but the distortion level is just to high and fixed market value is not a free competitive market value.

Most Nations in the world exchange currency. You have a market place of currency that has utterly nothing to do with the trade value of people within their own nation. There is profit and loss in the exchange and of course distortion of actual trade currency value. I dont know if the mass purchase of grain etc from nation to nation can even find a fair world price as exchange of currency and distortion by means of currency is hidden in that purchase.

Long story short to me the only solution a nation has is to maintain currency strength within ones own nation. What does that mean it means your nation is affordable for all who live in it. When you eliminate free market value which is people trade value how can you determine what the value of currency is? Value then is determined by world value however it is the internal value of your currency that maintains your economy. Nations that are exporters are at the grace of the winds and whims of the world

I read yesterday that some analysts are going to forgo individual stock valuations. Yet those individual stocks are what funds are composed of. The trade to focus on is perhaps now the fund but the real value is in the stock that provides jobs for the people who in turn provide for it.


With Crisis in Europe Ebbing, Focus Shifts to Struggling U.S. Economy

I read this headline and thought to myself it is a complicated paper mess.
Who is on first?
Well I think the guy who was on second ran back to first.
I thought he was on third
No he is out at present.

Happy Forth I hope

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