As the dollar tanks: your predictions…

[cr]

“European sports cars might appreciate significantly over the next few years.”

I was thinking about that when I saw this mornings LA Times article on the LA Car Show debuting the Lamborghini Reventón. At $1.46 Million US or $1 Million Euro, it could cost $2MM a year from now.

[patientlywaiting]

When you travel overseas, people will laugh at the fat, loud and poor (formerly rich) Americans.

But more seriously, companies such as Boeing and Caterpillar will benefit right away.

I don’t think that manufacturing will come back to America because, with automation, China will always be able to produce consumer goods for less no matter where the dollar is. Certain specialized manufacturing might make a come back.

Longer term, we might see double digit interest rates to attract foreign investments again. With high interest rates, housing might stay in the slump for a good 15 year period.

[patientlywaiting]

When you travel overseas, people will laugh at the fat, loud and poor (formerly rich) Americans.

But more seriously, companies such as Boeing and Caterpillar will benefit right away.

I don’t think that manufacturing will come back to America because, with automation, China will always be able to produce consumer goods for less no matter where the dollar is. Certain specialized manufacturing might make a come back.

Longer term, we might see double digit interest rates to attract foreign investments again. With high interest rates, housing might stay in the slump for a good 15 year period.

[patientlywaiting]

When you travel overseas, people will laugh at the fat, loud and poor (formerly rich) Americans.

But more seriously, companies such as Boeing and Caterpillar will benefit right away.

I don’t think that manufacturing will come back to America because, with automation, China will always be able to produce consumer goods for less no matter where the dollar is. Certain specialized manufacturing might make a come back.

Longer term, we might see double digit interest rates to attract foreign investments again. With high interest rates, housing might stay in the slump for a good 15 year period.

[patientlywaiting]

When you travel overseas, people will laugh at the fat, loud and poor (formerly rich) Americans.

But more seriously, companies such as Boeing and Caterpillar will benefit right away.

I don’t think that manufacturing will come back to America because, with automation, China will always be able to produce consumer goods for less no matter where the dollar is. Certain specialized manufacturing might make a come back.

Longer term, we might see double digit interest rates to attract foreign investments again. With high interest rates, housing might stay in the slump for a good 15 year period.

[patientlywaiting]

When you travel overseas, people will laugh at the fat, loud and poor (formerly rich) Americans.

But more seriously, companies such as Boeing and Caterpillar will benefit right away.

I don’t think that manufacturing will come back to America because, with automation, China will always be able to produce consumer goods for less no matter where the dollar is. Certain specialized manufacturing might make a come back.

Longer term, we might see double digit interest rates to attract foreign investments again. With high interest rates, housing might stay in the slump for a good 15 year period.

[34f3f3f]

In T R Reid’s book “The United States of Europe” he points to a growing threat from the Euro which is ignored by the US at its peril

He points out that the inflow of US dollars from foreign purchase of Treasury bonds, has historically eased the pain of (or funded, if you like) the huge trade deficit ($700m 2005). In 2004, Euro denominated bonds rose to $4 trillion, almost equal to the amount invested in dollar-denominated bonds. In a 2005 survey, two-thirds of the world’s richest nations were planning to shift out of the dollar and into the Euro. If this happens -and many economists say it will- the US Treasury may have to raise the rates it pays to attract investors, which means it would end up paying even more to finance it’s huge deficits. The dollar would then lose more value, and foreign investors would pull out of US markets, sending indices tumbling, and a hike in tax would follow to make up the short fall from lost sales of bonds.

[34f3f3f]

In T R Reid’s book “The United States of Europe” he points to a growing threat from the Euro which is ignored by the US at its peril

He points out that the inflow of US dollars from foreign purchase of Treasury bonds, has historically eased the pain of (or funded, if you like) the huge trade deficit ($700m 2005). In 2004, Euro denominated bonds rose to $4 trillion, almost equal to the amount invested in dollar-denominated bonds. In a 2005 survey, two-thirds of the world’s richest nations were planning to shift out of the dollar and into the Euro. If this happens -and many economists say it will- the US Treasury may have to raise the rates it pays to attract investors, which means it would end up paying even more to finance it’s huge deficits. The dollar would then lose more value, and foreign investors would pull out of US markets, sending indices tumbling, and a hike in tax would follow to make up the short fall from lost sales of bonds.

[34f3f3f]

In T R Reid’s book “The United States of Europe” he points to a growing threat from the Euro which is ignored by the US at its peril

He points out that the inflow of US dollars from foreign purchase of Treasury bonds, has historically eased the pain of (or funded, if you like) the huge trade deficit ($700m 2005). In 2004, Euro denominated bonds rose to $4 trillion, almost equal to the amount invested in dollar-denominated bonds. In a 2005 survey, two-thirds of the world’s richest nations were planning to shift out of the dollar and into the Euro. If this happens -and many economists say it will- the US Treasury may have to raise the rates it pays to attract investors, which means it would end up paying even more to finance it’s huge deficits. The dollar would then lose more value, and foreign investors would pull out of US markets, sending indices tumbling, and a hike in tax would follow to make up the short fall from lost sales of bonds.

[34f3f3f]

In T R Reid’s book “The United States of Europe” he points to a growing threat from the Euro which is ignored by the US at its peril

He points out that the inflow of US dollars from foreign purchase of Treasury bonds, has historically eased the pain of (or funded, if you like) the huge trade deficit ($700m 2005). In 2004, Euro denominated bonds rose to $4 trillion, almost equal to the amount invested in dollar-denominated bonds. In a 2005 survey, two-thirds of the world’s richest nations were planning to shift out of the dollar and into the Euro. If this happens -and many economists say it will- the US Treasury may have to raise the rates it pays to attract investors, which means it would end up paying even more to finance it’s huge deficits. The dollar would then lose more value, and foreign investors would pull out of US markets, sending indices tumbling, and a hike in tax would follow to make up the short fall from lost sales of bonds.

[34f3f3f]

In T R Reid’s book “The United States of Europe” he points to a growing threat from the Euro which is ignored by the US at its peril

He points out that the inflow of US dollars from foreign purchase of Treasury bonds, has historically eased the pain of (or funded, if you like) the huge trade deficit ($700m 2005). In 2004, Euro denominated bonds rose to $4 trillion, almost equal to the amount invested in dollar-denominated bonds. In a 2005 survey, two-thirds of the world’s richest nations were planning to shift out of the dollar and into the Euro. If this happens -and many economists say it will- the US Treasury may have to raise the rates it pays to attract investors, which means it would end up paying even more to finance it’s huge deficits. The dollar would then lose more value, and foreign investors would pull out of US markets, sending indices tumbling, and a hike in tax would follow to make up the short fall from lost sales of bonds.

[j]

Typically exports benefit when a country’s currency is weak, the current US economy is not typical. Our number one export is financials (stocks and bonds), and as the dollar goes down so does the foreign investor’s investments. Flight to quality used to mean US Treasuries, but if you are a foreign investor US Treasuries are junk. How much is the CANADIAN dollar up on the dollar over the last 6 months, Euro, Yuan, etc. That means US Treasuries have a negative yield. Every Fed cut hurts the US’s number one export. If foreign investor’s cash out, who is going pay for the US consumer’s spending binge, not the US. US savings rate in negative.

[j]

Typically exports benefit when a country’s currency is weak, the current US economy is not typical. Our number one export is financials (stocks and bonds), and as the dollar goes down so does the foreign investor’s investments. Flight to quality used to mean US Treasuries, but if you are a foreign investor US Treasuries are junk. How much is the CANADIAN dollar up on the dollar over the last 6 months, Euro, Yuan, etc. That means US Treasuries have a negative yield. Every Fed cut hurts the US’s number one export. If foreign investor’s cash out, who is going pay for the US consumer’s spending binge, not the US. US savings rate in negative.

[j]

Typically exports benefit when a country’s currency is weak, the current US economy is not typical. Our number one export is financials (stocks and bonds), and as the dollar goes down so does the foreign investor’s investments. Flight to quality used to mean US Treasuries, but if you are a foreign investor US Treasuries are junk. How much is the CANADIAN dollar up on the dollar over the last 6 months, Euro, Yuan, etc. That means US Treasuries have a negative yield. Every Fed cut hurts the US’s number one export. If foreign investor’s cash out, who is going pay for the US consumer’s spending binge, not the US. US savings rate in negative.

[j]

Typically exports benefit when a country’s currency is weak, the current US economy is not typical. Our number one export is financials (stocks and bonds), and as the dollar goes down so does the foreign investor’s investments. Flight to quality used to mean US Treasuries, but if you are a foreign investor US Treasuries are junk. How much is the CANADIAN dollar up on the dollar over the last 6 months, Euro, Yuan, etc. That means US Treasuries have a negative yield. Every Fed cut hurts the US’s number one export. If foreign investor’s cash out, who is going pay for the US consumer’s spending binge, not the US. US savings rate in negative.

[Author]

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