The Exchange Rate Could Get Worse

[DJilla]

Originally Posted by RawAlex

As a result: The costs of many imported goods goes up over time, creating an undertow of inflation, all the while the internal economy is creating nothing but cheap ass bottom feeder minimum wage jobs, so the actual average buying power in the economy goes down, as does the realtive standard of living when compared to other countries. The value of all american assets (housing, business, whatever) drops in relative terms.

I don't read papers so I'm out of the loop on a lot of things but a simple confirmation of your general thrust (pun) was delivered to me at about 3:30am this morning when I walked into a White Hen and was blown away by the finance headline in a paper on the counter. Gold is at $745 and change. All precious commodities are up big time and in some cases almost double a few years ago like zinc. FYI, copper is $4 a pound for delivery in July. It takes 114 copper pennies (the old ones not the new) to make a pound. Do the math and see what your local smelter is paying and if you're not making any cash in porn one might see this as an opportunity in spare change .

Back to the point, gold at 745 and rising AND the market at 11,000 is INSANE, its a financial non sequitar. Basically what its telling you is that the brightest financial minds are in agreement that inflation and the value of paper finanical instruments (including mortgages which no longer reflect the underlying value of the asset in most metro areas) are in for one big helping of whoop ass. IMHO