Is this correct or a joke?

conan776:

Is this correct or a joke?

An exageration, a humorous jab at the weak dollar. Probably really no more than $25 or $30.

Oohh. Well, he could have been clearer. Thanks for the reply

tsedek:

conan776:

Is this correct or a joke?

An exageration, a humorous jab at the weak dollar. Probably really no more than $25 or $30.

The housing bubble was, in part, a symptom of the massive offshoring of manufacturing and computer programming to foreign countries with cheap labor. Eventually, those people have to put their dollars somewhere. The modification of exchange rates to normalize competitive labor costs is a long-term inevitability -- otherwise, no one would bother using American workers for anything.

If England's currency is still high -- so an English worker's pay equals a dozen or more Indians or Chinese, then it seems inevitable that the pound will also fall before too long. I mean, what people with other currencies will want to buy pounds (needed to buy English products) if you get so little for it? And if protectionism takes England out of international trade, then the money pretty much doesn't get exchanged -- in which case the exchange rates won't matter.

"If England's currency is still high -- so an English worker's pay equals a dozen or more Indians or Chinese, then it seems inevitable that the pound will also fall before too long."

The Pound will fall because BoE has started cutting interest rates to attempt to stimulate their economy, same thing Bernanke is doing. Pound will likely drop a quarter against the Euro this year.

Currency rates have little to do with the cost of a laborer in Bangalore. The Euro is hanging tough because the ECB declined to cut rates last month, as did Australia. Canada cut and a few Asians. Easy to chart the results.