RadioBanter - View Single Post

ve3... · December 16th 06, 01:40 AM posted to rec.radio.shortwave

wrote:
ve3... wrote:
This week, US treasury officials are off to China to try to arrange an
orderly decline in the value of the dollar. Up to now, the Chinese
currency has been locked in with the dollar, but they are now going to
dump dollars in favour of a mix of currencies plus gold.

Makes sense to me. It will make American goods relatively more
attractive.

What goods? Except for Boeings and armaments and entertainment, the US
doesn't have any manufactures to sell. The US trade deficit is running
about $80 billion a month and the US is paying for it with depreciating
currency.

Although the
dollar has dropped 40% against the Euro, you wouldn't notice it at
Wal-Mart, the Chinese outlet.

Since when is Wal Mart a chinese company.

I didn't say Wall-Mart was a Chinese company. A said it was an outlet
for Chinese goods. Take a walk through a Wal-Mart and look for
American-made stuff.

It's only if you wanted something from
France or Germany that you would feel pain, and even Canadian holidays
are not the bargain they once were.

This is not new news - it's been this way for several years.

The slide is continuing and getting worse: that's the news.

There seems little doubt that the US government is going to try a
controlled inflation of the currency to patch over its money troubles
and hope that the slide doesn't turn into a rout as it has in other
countries (Argentina, Brazil, Zimbabwe, Russia, France, Mexico).

Which money troubles are you talking about. When you say controlled
inflation of the currency what are you talking about. Are you talking
about controlled inflation (expension) of the supply of currency? Or
increased prices of goods and services. And how will whichever
inflation you are talking about correct the money troubles you have yet
to define.

Currency inflation leads to price inflation. A depreciated dollar will
be used to pay off foreign debts and pensions. Sure, you will still get
$1000 a month Social Security but the prices of everything will have
doubled.

Prices of radios are going to go up.

Now that is insightful. How much and when.

The question is: how fast?

Armed with this foreknowledge, I bought a few ICF-S10MK2 radios from
Amazon (free ship) while I could still afford to. OK, call me a
cheapskate, but many a mickle maks a muckle, and lang may your lum
reek.

You might want to buy all the Degen and Tecsun radios you can. Just
think of the bargains you would have if the new ones went up in price
20%.

I see my little attempt at humour went right over your head. Of course
a higher price on a Sony ICF-S10MK2 won't make an appreciable
difference, but as you get into the $1000 and up category inflation
does make a difference.

Since we have a difference of opinion, let's meet again in one year
to see who was right . I have been shorting the US dollar for years
with no losses.