Just for a kick (in the intellect), I turned on a few minutes of the Money Honey's Posing Well show on the Corporate Nonsense & Bull$#!& Channel. Some suits (they actually found more than one shill) were on telling about how the decline in the
WTF ... er... USD would be good for emerging market investing, due to the number in dollars gained once those profits were converted back from foreign currency. Oh, let's not forget how this will help manufacturers in the overseas markets. NO mention of the loss in buying power, since everything (besides paperwork) is made somewhere else.
Now I seem to recall, when a similar thing happened in Asia about 10 yrs ago, it was called a crisis by our media. When it happened in Mexico, well ... happens in Mexico, it's called a crisis by our media. Not just our media, but our gov't sees fit to extend help from our pockets, too. But here, today, the rotting of the buck is (where's Martha?) A Good Thing?
This will make the Industrial averages look good, as money looks for a place to hide. Total smoke. Here's a little excercise for the clever kids.
- Take the price of anything you buy regularly; food, gasoline, dental care.
- Divide that price into the 2007 peak DJIA (~14,000)
- Do the same for the price of that same item in the year 2000 and the peak DJIA for that year (~11,700)
For a peek into the future, look at the Zimbabwe dollar. Their stock market is going gangbusters ... nominally. Their economy is in the toilet, their farms are going fallow, and gas is about a million Zimbabwe dollars per gallon... when available. Do a search on "Cathy Buckle".
People don't realize that about 30 yrs ago (1980), the Zw dollar was worth MORE than the US dollar. This shows how fast things can go bad and how bad they can get. http://en.wikipedia.org/wiki/Zimbabwean_dollar