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Strategies & Market Trends : Currents of Currency

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From: Ahda1/20/2015 5:26:49 PM
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Anybody out there who can add to this please please do Making life simple I believe it is true that Turkeys eat more than chickens. Turkeys gobble chickens peck.

US dollar strength is greater purchasing power for labour in other parts of the world Commodities use to be the leveler of the entire. Production once was limited to mother natures hand. Now man has found methods to salvage and utilize that which could not be used because we did not have the technology we now have that reduces waste and increases production. Cost factor that is difficult to control is man labour as in many areas we are no longer breeding like rabbits. Robots are becoming more and more capable of acting as humans and with AI increasing abilities in the future they will be able to fill the space left by lack of births.

We are very cost efficient the world now revolves more around financial markets than it ever did. We are no longer limited by a prerequisite of physical asset to establish valuation as we move into the sharing economy more and more we establish value by means of people service to people. We are now in a period where finance has the greatest clout in the world and that finance can well be viewed as self reproduction.

The negative of this is debt owed by nations that are not affluent so of course the bond market has be affected. If we look back to the feudal ages the lords of the land had many peasants and that problem is not easy to solve. We world could eventually adjust to a level income that lacks affluence but is able to feed self. The problem with that is jealous of neighbor begins and you have the possibility of war. Lack of technology in many areas limits the potential for long distance range wars but increase the chances of local wars.

Back to affect of strong Us dollar Canada finds her resources are much less costly than were in terms of US dollars Canada labour rate is high Gold is much more costly than was in terms of Canadian dollars. However it could all be beneficial to Canada as products she produces In Canada are less costly to others. if there is any sign of a recession over there that will put a bit of pressure on her wages market so she will not out prices herself.

When I think of easing I think easing basically benefited upper income people so now easing has stopped lower income people might find they are going to be the benefactors as prices cannot continue up. There of we could begin a period of deflation that should of begun a long time ago had we let true asset price reign because of free market.
The strong US dollar promotes lower cost products as it buys more than it did before. In the mean time with deflated currency in other parts of the world production costs go up and unemployment could increase. Now we understand Russia and the world of protectionism.

I suppose that takes me to currency exchange you buy gold to protect against a currency crisis and if there is a currency crisis US being the strongest currency could get sold off very quickly. If you hold US and sell it off you get more of your own currency back and can shore your own currency up. Mentors Needed!
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