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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (70644)	10/29/2007 3:14:55 PM
From: sea_biscuit	Read Replies (2) \| Respond to of 116555

If hotel rooms were quoted in Euros, rates would drop as the value of Euros rose vs. the dollar. In that case, if I wanted a hotel room 2 years later, I am better off saving up in Euros, rather than in USD. That is the point.

To: mishedlo who wrote (70644)	10/29/2007 3:29:37 PM
From: ItsAllCyclical	Read Replies (1) \| Respond to of 116555

I'm getting to be a big fan of your blog, but this is one situation where I think you're at least partially wrong. Maybe you've addressed this, but most of the world's CB reserves are in Dollars (60-70%). Various reasons, but at least some of this is related to oil being priced in Dollars. If Opec goes to a basket you might find that CBs have more cover to divest of the Dollar and/or Dollar peg. Making an analogy to a hotel room is only somewhat relevant imho.

To: mishedlo who wrote (70644)	10/29/2007 4:56:23 PM
From: Tommaso	Read Replies (1) \| Respond to of 116555

"If hotel rooms were quoted in Euros, rates would drop as the value of Euros rose vs. the dollar." Hotel rates ARE quoted in euros in most of Europe and the rates have not dropped as the value of the euro increased. There are probably hotels in New York City that do quote their prices in euros if you want them to. But I do not have time to research this, or to restate the law of gravity, or prove the Pythagorean theorem, or advance an argument that Homer is a famous poet or take a survey to find out whether sugar is sweet or not.