If it wasn’t for the fact that the U.S dollar is the world’s “current” reserve currency – I’d likely have a wider range of things to write about, and I need to be bit careful here.
Frankly – I’m bored stiff of the debate. If it where the “Aussie” or the “Loonie” or the “Kiwi” whatever…same thing..as this is the current situation, and you’ve got to look at it for what it is.
The world’s reserve currency has changed many, many times in history – and will most certainly change again. If you can’t wrap your head around that well…..you’ll need to dismiss “human history” as well.
The current “news headlines” making light of the American Dollar’s day-to-day “strength or weakness” have little bearing on the larger macro changes at hand, as these things take years, and years , AND YEARS to come to fruition.
A simple example. You wouldn’t have blamed the CEO of a large American company back in the 80’s for crunching the numbers, and realizing that “outsourcing her manufacturing to China” would save investors millions – you’d have praised her!
Then another CEO caught on, then another and another…yet another – then “another” until finally – BOOM!
20 years later and America has more or less sold out it’s entire domestic manufacturing industry! Oops.
Good night Detroit!
Point being…….these things take years to manifest in a literal “news headline slap in the face” , and this “is the point”. The “macro” is there behind the scenes and will “always” provide valuable insight when looking to assess and evaluate the “micro”.
The question remains…How Macro Can You Go?