Wednesday, January 9, 2013

Something For Nothing

I have a Stanley Thermos that I use for bringing coffee to work each day.  On it, there is an emblem that says "STANLEY since 1913".  Green and chrome color, you know the one.  When you turn it over, on the bottom is stamped "Aladdin - a division of PMI Brentwood, TN".  Also stamped on the bottom is "MADE IN CHINA".

http://www.oftwominds.com/blog.html 

"Many U.S. corporations derive 50%-65% of their revenues overseas."

"As the dollar weakened, global corporate profits skyrocketed as earnings in euros, yen, etc. rose when stated in dollars.  In other words, overseas profits expand as if by magic when stated in dollars.
When the euro and the dollar were 1-to-1 back in the early 2000s, then 100 euros of profit converted to $100 when stated in dollars. When the euro rose to $1.60, then the same 100 euros of profit earned by the U.S. corporation in Europe converted to a stupendous $160 in profit when stated in dollars.  This explains why the Fed has been so keen to trash the dollar: it magically increases corporate profits and thus drives stocks higher. The mainstream financial media's explanation for the weak-dollar policy is that the Fed is anxious to increase exports, but this is a sideshow; exports make up less than 9% of the U.S. GDP. The real action is in corporate profits, which thanks to the weak dollar are near all-time highs of $2 trillion, about 14% of the nation's entire GDP."  

hmmm....US corporations have long enjoyed
  • the stability and protections of locating within the US
  • the cheap and abundant labor force of "brown/yellow countries"
  • and the manipulation/mushrooming of profits by way of the US dollar being the reserve currency of planet earth
But, we still have to float asinine ideas like the "magic trillion dollar platinum coin" to balance our budgets...

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.