The dollar declined 40% against the euro in the last six years. In late 2006 ¥1.00 = US$ 0.0085, today ¥1.00 = US$ 0.013, a decline of 52% in the last five years.
What this translate to is that US goods is 40% cheaper for EU and for the Japanese it is 52%.This is what the USA wants. US goods and services will be cheaper and thieir companies will be come more competitive thus the end result is to increase their exports. However owing to certain few who deem it as their right they created the sub-prime loans and in 2008/2009 caused a global recession. US exports drop from US$ 1.8 trillon in 2007/2008 to US$ 1.5 trillion in 2009.
This was suppose to be an advantage to the US, however it didn't but resulted in a wider and bigger trade deficit.
A very dangerous position US is getting into, if they don't address it US will loose it's know how eventually. US over a long period of time will be importing basic nessecities like shoes, table salts, sugar and maybe in the near future hamburger patties. Once they loose all these it will be a new world order and believe me the Americans will not loose it. They will claw back and it will be fairly fast as America is known to have a winning behavior.
So we will see!
Till then and cheers!
TjLim
Kinkaku-ji Kinkaku-ji's history dates to 1397. This villa was purchased from the Saionjis by Shogun Ashikaga Yoshimitsu, and transformed into the Kinkaku-ji by this Shogan, an action he set out to do, and its still standing today when I personally took this photo. Thus; Man is not paid for what they know, but, its for what they do with what they know!
1 comment:
Like the part about future hamburger patties :p
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