Silicon Investor (SI) -- The First Internet Community

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 : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (56296)	11/22/2004 7:35:10 AM
From: elmatador	Read Replies (1) \| Respond to of 74559

Jay, <betting no crash but a bounce of USD,> Amen!

To: TobagoJack who wrote (56296)	11/22/2004 4:31:55 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

<<<2.5% is only an attractive interest rate until February. Then it will be time for another pay increase, heading for the Happy Meal>> ... slim chance, unless accompanied by greater than 2.5% devaluation of USD, in which case you lose in any case. > Jay, the US$ has declined against: NZ$ from 39c to 71c Gold from $323 [when I declined to buy] to $449 Euro by 30% Yen by 30% QCOM from $12 to $41 split-adjusted NZ housing in US$ by over half. Crude oil from $15 to $50 Those are serious declines. On purchasing power parity parameters a Happy Meal is no longer particularly cheap in NZ$ for an American tourist. They can still go shopping in China at the pegged rate and acquire bargains galore. But a gold door knob is costing them serious money. A big platinum catalytic converter for their dirty great SUV is costing them a bundle, while wolfing down gallons of expensive oil. They are still enjoying bargain rates for borrowed money and it's time for that to be cancelled too. I want interest rates back up where they belong. Americans have had a great time for years, shopping around the world for bargains on borrowed money. Now they have IOUs up to their waists and it's time for them to cancel holidays, stop spending on gold, vacations, SUVs, oil, and Happy Meals in Middle Earth and get back to work. The seventy million indebted dwarfs will have to leave Condoleezza and King George II to worry about the WAT and fighting the crocodiles while the dwarfs head off to the mine and swamp-draining projects singing, "I owe, I owe, it's off to work we go...". Mqurice