May 2, 2006
-- by Dave Johnson
The US Dollar has started falling. Dollar Declines On Trade Deficit,
The dollar has suffered sharp losses against other currencies the past two weeks, and yesterday it hit a fresh, seven-month low against the Japanese yen. Although it rallied yesterday afternoon against the euro, it fell to an 11-month low against the European currency earlier in the day and is down nearly 6 percent against the euro since late February.There is a LOT of room to fall further. If you are able, move money into Euros, Canadian dollars, wherever. You'll get a very, very nice return as the dollar falls.
Will the falling dollar bring business and jobs to the US? Two problems. First, China keeps its currency pegged to the dollar, so as much as things purchased from us might cost less as the dollar falls, they continue to cost even less from China. Along with that, we have been sending our manufacturing infrastructure away, so it will take some time to ramp up to make things here again, not matter HOW much of a currency advantage we might gain.
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Yeah. I've been carping about the loss of our manufacturing infrastructure for several years now, and nobody's paid any attention. So we'll get no advantage whatsoever from the falling dollar. When will rampant inflation set in -- not that it hasn't already. Yesterday I refused to pay $4 for a tomato!
$4.00 for a tomato? MJ, get a five gallon bucket and a couple of seeds.
Posted by: grannyinsanity at May 2, 2006 9:55 PM
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