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 : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: THE ANT who wrote (129513)	2/1/2017 8:03:09 AM
From: Elroy Jetson	Respond to of 217735

Visit Germany and tell me how the Euro is undervalued. Prices in Continental Europe seem pretty similar to similar cities in America. The Pound is cheap currently but that's a self-inflicted wound. In 2014 and prior when the Euro was $1.38 Europe was very costly for an American. That tells me the Euro was overvalued relative to the Dollar back then. Now the Euro to Dollar is where it should be. Poor Switzerland over-sold their image as a safe haven, surrounded themselves with tariff walls and they have a currency which is currently so over-valued that they can't really export much of anything. Thank goodness companies like Nestle bought other firms around the world so Switzerland exports to America from America and to Asia from Asia. George W Bush showed how to trash the value of the US Dollar temporarily - set up a "ownership society" and lend so many Dollars that they became devalued. Home prices doubled while the value of the Dollar dropped by half. But there's finally a reaction when you push things too far - the bubble collapses and Trillions of Dollars were vaporized as asset prices declined - so naturally the Dollar regained its losses. It's like a house of mirrors at a carnival - this one makes you look short, that one makes you look tall - but you're not really changing, it's all an illusion. Can a country deliberately maintain an undervalued currency as a trade advantage? Absolutely not, certainly not for any period of time. Talking about the value of the Dollar might help people feel there's a magic solution - a trick to explain why Volkswagen now sells more cars globally than Toyota does. Selling in China helps them and it helps VW didn't sell diesels there to speak of But ultimately good products sell better than bad products. A China, a Korea, and before them a Japan can compete exclusively on price for a while, but ultimately there's more money moving up the food chain. China is letting Vietnam and Pakistan take the place of low-cost king. It's not a title worth holding for too long. So is the solution trashing the value of the US Dollar and driving down American wages so America can become the new Pakistan? God forbid, but it's sounding pretty popular to Americans who think prosperity comes from bringing back low-wage manufacturing jobs which are about to be handed-off to robots. It's a dead end. So the question you need to ask is how to profit from Trump's coming policy failure.