It strikes me that there are 2 reasons for something being cheap.
First is poor quality leading to low demand - hence the term "weak" applied to "cheap" currencies.
The other is greater productivity than the competition.
It strikes me, given our current economic conditions (as nearly perfect as have ever been), that the USD can hardly be considered poor quality. To the contrary, by all rights it is very high quality.
So if it is "cheap," is it not more likely that US economic productivity is going through the roof compared to our competition of other currencies?
That is, it strikes me that given a greatly increased worldwide market of "middle class" economies now able to buy American, coupled with our efficiency at "making money," it actually bodes extremely well for us.
It does bode well for us. Fortunately, you are a simpleton as you say, and have not educated yourself into insanity. A handful of books here, and some magazines there is more likely to confuse the heck out of you, and give you a small part of a huge puzzle.
Look, even though I’m in this professionally, for 15 years, will readily admit that I don’t know all of it. In fact, anyone ever tells you they do, run away from them...
The USD got weak for a number of reasons that are completely sound in the historical context of normal trade, economic action, reaction. The problem here is, people think this time is different, and the dollar will never recover. That is just plain stupid.
Most folks don’t realize that primary reasons for gold and oil being high, is that it is only high as it relates to the dollar, which is much weaker in value than it was in 2000. In 2000 it was at an all time high, hardly what you’d call the “appropriate” level. Who knows what that really is, but this leverl is WAY too low. It will benefit us so much, that the advantage will disappear, as it always does, our currency will go back up.
What is important is, when it DOES go back up, which I think is fairly soon, the world will flock to our securities (stocks and bonds) because they will make money on the security and the appreciation of our currency compared to theirs. It has ALWAYS worked this way, and will ALWAYS work that way.
And why on earth would they come back? For the same damn reasons we buy their stocks and bonds, opportunity and need for diversification. Remember which stock and bond market is the LARGEST in the world????? Yes, so a foreigner with no exposure here, is a flat out idiot.
The problem is, foreign investors have been losing money here for many years, cannot handle the pain. They are making more at home and other abroads and naturally pull from the weakest link, the US.
So, when the tide goes the other way, they will be back from every corner of the Earth. You realize just how much money that will be, coming into our markets???
Thanks for your question, it also allowed me to continue to formulate how I see things. I see things looking very good for the USA.