11/16/09 Stockholm, Sweden – A recent article on the merits of a falling dollar prompted Zero Hedge guest contributor Davos to directly contradict it, “it should scare you.”
The reason is straightforward. The article suggests the lower dollar is good for US exporters and foreign importers and is bad for foreign exporters and US importers. However, it fails to point out certain key details, for example, that “we import 2/3rds of our oil.”
In another flimsy argument, the article cites two recent Federal Reserve papers to support its points. To address the Fed’s credibility Davos embeds the YouTube video below, where the “chairman of the Fed who got it 100% wrong” explains his perspective on a number of issues over the past few years. It’s hard to believe anything from the Fed at this point.
Finally, to explain how this critical thinking is good for your portfolio Zero Hedge quotes HL Mencken, “No one in this world, so far as I know … has ever lost money by underestimating the intelligence of the great masses of the plain people.”
Davos has “deleted every mainstream news source” from his RSS reader and would likely recommend you do the same. See the full analysis from Zero Hedge in its criticism of mainstream news and experts.
Rocky Vega
Rocky Vega is publisher of The Daily Reckoning. Previously, he was founding publisher of UrbanTurf and RFID Update, which he operated from Brazil, Chile, and Puerto Rico, and associate publisher of FierceFinance. He specialized in direct marketing at MBI, facilitated MIT Sloan School of Management programs, and has been featured on CBS. Vega graduated with honors from Harvard University, where he was on the board of Let’s Go Publications and directed business programs involving McKinsey, Goldman Sachs, and Harvard Business School faculty. He is also enrolled at the Stockholm School of Economics.
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it goes without saying that ben bernanke is a complete turd who carries water for the rockefeller / rothschild axis of evil and thus it matters not whether or not he has been right about anything including his faux analysis of the great depression or the present crisis…
on the other hand the whole rationale behind floating exchange rates was that they would float pursuant to balance of payments (plus other factors)…so the dollar should plunge to meet its return to the mean….we have run huge deficits for decades and debased excessively the money – why should the value of the dollar not evaporate?
yeah a falling dollar has consequences but most decisions do and they should be respected….
Cheaper dollars mainly benefit US companies that are currently exporting to global markets, as they can offer more attractive prices to foreign customers. Not too many of these remain, unfortunately.
great post as usual .. thanks .. you just gave me a few more ideas to play with