Showing posts with label trade imbalance. Show all posts
Showing posts with label trade imbalance. Show all posts

September 26, 2007

One week into a historic dollar implosion, not one peep from this administration about protecting the dollar and reassuring foreign reserve holders


In other words, they're just getting started.


The dollar death spiral is firmly underway...

Thank you REIC!

September 24, 2007

Good article on why you need to be invested in foreign stocks as the US dollar collapses


I'll call this highlight from the Motley Fool article the donut example. Pretty easy to understand. If you haven't moved your holdings out of US$, better hurry. It's getting ugly and it's only gonna get worse (thank you Ben Bernanke you fu*king traitor idiot)

For example, U.S.-based investors in Canadian doughnut slinger Tim Hortons (NYSE: THI) have profited mightily over the past year as the greenback swooned against the loonie. And guess what? With U.S. interest rates declining, chances are that the dollar will continue to be weak.

The difference is dramatic: U.S. shareholders have seen Tim Hortons rise from US$25.15 to its current price of US$34.14. Canadian investors have seen the price go from CAD$28.00 to CAD$34.59.

In Canada, Tim Hortons shareholders have gained 24%. For U.S-based investors it was 36%. The difference? The dollar's slide.

Now, I'm not saying that the dollar will continue to go down. What I am saying is that investors who diversify away from their home currency do themselves a huge favor by looking overseas for investments. I'm also saying that a lower interest rate environment in the United States suggests that the trend isn't changing.

March 07, 2007

Wal-Mart puts you in one of three buckets. HP adds a fourth.

Here are the three groups into which the evil Wal-Mart has segmented its customer base:

1) Brand Aspirationals (people with low incomes who are obsessed with names like KitchenAid),

2) Price-Sensitive Affluents (wealthier shoppers who love deals)

3) Value-Price Shoppers (who like low prices and cannot afford much more)

And of course, HP would add a fourth segment:

4) Anti-American Self-Obsessed Over-Consuming Credit-Card & Housing-ATM Addicts (people who don't care that their friends and neighbors are losing their jobs, the trade imbalance is devastating America, or that neighborhoods are being sterilized, as long as they can use their credit line to buy Chinese crap at low prices)