Wednesday, August 12, 2015

Strong Dollar vs Weak Dollar?

I believe strongly in a strong dollar. A strong dollar benefits everyone who saves dollars, who is paid in dollars or who spends dollars. A weak dollar benefits holders of rival currencies, debtors and niche players. Arguably, debtors and most niche players might also benefit long-term from a strong dollar.

An example of a niche player is a Manhattan hotel who caters to Chinese tourists. If the Chinese devalue the yuan the hotel might see a sudden decline in guests. In my view they are being short-sighted. Their assets have held value, especially against the yuan. They also have a new potential market, holders of American dollars whose purchasing power has also held its ground.

Exporters can also be short-sighted. Devalue the home currency and foreigners suddenly see your product more attractively. That is because your product has lost value with the home currency devaluation. The exporter's assets and savings are devalued along with the native currency. The number guys sometimes overlook those details.

Larry Kudlow used to be on CNBC and he would tout King Dollar. Now CNBC is staffed by talking heads who whine about the evils of a strong dollar. Donald Trump complains about the Chinese "manipulating" their currency. Fox News will periodically voice similar complaints.

 I say, let them manipulate. If we can assist them in this endeavor, let us do so. I will admit a certain bias here. When I hear anyone sell the advantages of a weaker native currency I think FLIMFLAM! It is the trickery that is at the root of our country's economic decline.

The strong dollar people, few in number and small in influence, have not sold the merits of a stable currency to the public. Perhaps the most important question will go unasked by the millionaire pundits: "Mr. Candidate, do you prefer a strong dollar or a weak dollar?"

Tuesday, August 11, 2015

Introducing Lynnette And Rochelle

I THINK ROCHELLE IS KIND OF LIKE AN ED MCMAHON FIGURE

Monday, August 10, 2015

China Has Been Reading White House Email since 2010

China's cyber spies have accessed the private emails of "many" top Obama administration officials, according to a senior U.S. intelligence official and a top secret document obtained by NBC News, and have been doing so since at least April 2010. The email grab -- first codenamed "Dancing Panda" by U.S. officials, and then "Legion Amethyst" -- was detected in April 2010, according to a top secret NSA briefing from 2014. The intrusion into personal emails was still active at the time of the briefing and, according to the senior official, is still going on.

Cruz, Fiorina and Yes, Donald Trump Were Winners In Last Week's Debate.


An NBC/Survey Monkey weekend poll reveals that Ted Cruz and Carly Fiorina picked up substantial ground and Trump picked up a point (So much for Luntz's negative assessment). Ben Carson also did well. Christie lost two points and both Bush and Walker lost three.

All other candidates were unchanged or has a loss or gain equal to 1.