Ferrari to raise prices.

Will this mean that my 88 TR will now be worth more??????????????

 

The Stradale almost looks like a bargain now!

 

My thoughts exactly! Maybe the TR will at last stop its $ decline!

 

Everyone seems to think that the sine quo non in international currency exchange is the deficit in the US and/or the troubled Euro economies. While I am not saying that these are not issues - they are - they are however, tied inexorably to the China/US currency situation. China currently pegs its crappy currency to the US dollar. It does not float via free market economics, and China is our largest imbalance in trade to date. Higher dollar = higher trade imbalance vis a vie China, and THAT is what could cause a major cluster f**k in our future, not Europe.

Europe needs to get its own house in order and stop the endless blame the US game for its own unsound fiscal/social policies and realities.

The OPEC cartel of thieves are only looking out for themselves, as is Europe, as is China, and so, as we must as well, since the playing field is not level. OPEC itself is, IMO, inherently illegal, or at least, unconscionable, yet no one is screaming at OPEC or China for being monopolistic, anti free market, and unilateral.... just at us.

 

I agree. I wasn't placing blame only pointing that Money chases return and why I think the $ will stay low to the Euro for a while.

 

Hmmm... I haven't checked in a while, but I thought that imported oil was our biggest trade imbalance. I know that we are buying a lot of BBQ grills from China, but I didn't think that it was that much.

Just curious, DrTax

 

Oil comes from various countries (Canada more than Saudi Ariba) into the US. I think China is biggest country imbalance.

 

Yes, but that's wide of my point. Oil trade is not tied to one country and its currency, or the imports of that one country. Oil is fungible; coming from many sources, flowing anywhere, it is not a dynamic in the same sense that China vs US trade is. We, as well as most countries, import oil from many different countries, each with its own currency. It might be worth a post on this board to poll the members as to an opinion on pushing for a re examination of the exemption of OPEC from the Sherman Anti-Trust act of 1933. After all the exemption given as to those respective countries in OPEC refers to (I believe) a compelling "National Interest" of each of those countries, and allows this "combination in restraint of trade" (which OPEC clearly is)to legally exist. In todays world, I believe that is nonsense. What do you all think?

 

That's not my take on the situation. You are not taking into account that China's trade surplus is also due to her competitiveness in labour costs, technology, infrastructure, human capital, passion for reform, etc. Reducing levels of importation from China will only result in an increase in imports from other low-wage countries. So what difference would it make? Alan Greenspan recently stated:

"... the loss of U.S. jobs is not due to low-priced competition from abroad but to weak exports, a drop in business investment and increases in business efficiency."

 

>You are not taking into account that...

Certainly I am. Why would you assume that I have simply overlooked all of those elements?

Assuming all that you wrote is correct, then China should have no problem at all in decoupling it's currency, right? So, since they are competitive in labor, technology, infrastructure, & human capita, this is no problem!

I do differ on "passion for reform". I think that is subjective.