It sucks to be King. Although, it might be nice to visit Europe this summer and enjoy the grandeur of our King Dollars over their stupid euros. However, that plot has been largely foiled by the specter of middle eastern men blowing themselves up in cafes.
The dollar is rising on Yellen’s insistance that rates should be jacked higher. This, of course, has a debilitating affect on US multi nationals. In the first qt alone, it cost N. American companies $28 billion in earnings. Each and every earnings release is paired with FX losses that boggle the mind. Don’t these people hedge?
Purely from a consumer standpoint, a strong dollar crushes import prices, making them cheaper for us to hoard. Theoretically, this should increase volume at WMT and permit inflation to remain fucked, in the process saving Americans billions in expenses. But for some reason, retailers can’t figure this stuff out.
Too tricky, I suppose.
If you enjoy the content at iBankCoin, please follow us on Twitter
