Friday, February 29, 2008

Sheep in Wolf's clothing

So the US Dollar is taking a POUNDING lately, and the pundits are saying this is not good. I say "Au Contraire, my friend". Let's think about it: our Dollar is worth much less than the Euro, which means that more of them will be coming over here instead of us going over there. Hmm, if they come over here, they're going to spend money at our restaurants, shops, upscale retail outlets and the like. Isn't this what we want all along -- more shoppers net net? If your market has dried up, if your cheese has moved, what do you do? You go to where the market is. You change your tactics to increase your market share. Or, in this case, in addition to all of the above, you welcome the new shoppers that are coming to YOU. Sure, it's not a proud moment to admit that your national currency (the national currency of the world's strongest power, by the way) is worth less than the upstart Euro, but hey, if the "tactic" keeps you afloat and helps you pay your bills, what's your beef? The economy will slowly come back, thanks not just because of Fed intervention via economic stimulus, but also because of natural market events, such as the new underground cash flow created by the Euros coming to America and spending here (did I just say "such as"? That Miss South Carolina is rubbing off on me...yikes!). Already we are hearing of Euros buying up discounted real estate in Florida. Yes! That's what we need! They'll invigorate the real estate market and who knows? Maybe that will trickle down to help the rest of the r/e market. So what if they buy low and hold until the market returns and they sell high -- they'll take their profit and do what? Buy more! Now, political pundits will say that this may result in a growth pattern that the new administration will take full credit for, but the saavy ones will know the truth that it wouldn't matter what administration is in office, the market moves independently regardless. I'm not pushing aside Fed interaction completely, but as a long-time watcher and investor of the markets, I for one realize the logic of the markets as being an animal unto themselves, and no one can predict or control speculation (and Calvin Coolidge had it right: The business of America is business). So, bring me your Euros, your Drachmas, your Yen -- let's welcome your business with open arms, cuz we'll take the cash infusion!

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