Dollar price for my Swiss watch which originally cost $50 is now $54.42. That’s a huge jump from last week. It is depressing. It is costing Americans more and more to buy foreign goods. So, for all you Buy America First boosters – you should be happy.
For some reason we don’t understand, this is called having a stronger dollar. Maybe this is just the Swiss franc? They tried to bring the value down, but the president of the Swiss National Bank, who promoted that policy, had to quit, so maybe the SFr is rising again?
But look, if you had a Swiss bank account with SFr1,000 in it, it would have been “worth” about $1,000 in 2010. Today, that same SFr 1,000 is now worth $1,094 – that is a fabulous return without even considering whatever interest rate your Swiss bank is paying. [Update: this price was published four hours ago. Currently (7:56 pm PDT) that SFr 1,000 is worth $1095.29]:
Don’t worry that the price of gasoline and petroleum has also jumped because of the falling dollar. This is inflation that you don’t see except in a few indicator products. Soon our country will be as shabby as any other Third World nation.
But that’s okay, because the Federal government and the Fed Reserve will have “fixed” the economy so that there is more “growth” and less unemployment… just in time for the elections. What a coincidence! /sarc
Oh, our Model Portfolio Index is doing just fine! Pension funds and retired people who put their money into mutual funds will be happy. Talk about fabulous return! In just a couple of weeks, we’ve “earned” more than 7 percent on our “investment.”