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.
Yup, but to illustrate the point, the lower the dollar goes, the more absurdities come in to play, in the global sense. This summer, I was in a Honda showroom in the Philippines, they wanted 1,200,000 pesos for a made-in-Thailand CRV. Back when the dollar was 55 per, that was a moderately expensive ~$22,000 equivalent vehicle. Now, at 44 per and dropping, we're talking over $27k - when you can buy the same vehicle made in the USA but with better quality, better safety, more features etc for about the same price.
I'm sure there's more but that's off the top of my head. The lower the dollar goes from here, the more absurd things get. That won't last.