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A Heinz update to his/her previous post DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

A Heinz update to his/her previous post

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A Heinz update to his/her previous post Empty A Heinz update to his/her previous post

Post by Ponee on Mon Jun 09, 2014 10:09 am

The following post is an update from Heinz's first post found at https://www.dinardaily.net/t34333-we-have-been-told-so-many-lies-so-many-times-written-by-guest-heinz#215027


I probably should have given a couple of very strong underpinnings to my ending statement instead of leaving it open ended about stronger or weaker currencies and why it is so very important to know the difference on how the strength or weakness of money hurts or helps its respective country.


It is a bit unfair to leave the reader hanging without tying up those loose ends.


So here goes.


Now l am not saying that there is absolutely no one who knows how certain countries in the world try to lower the value of the exchange rate to help increase exported goods and services but if one doesn't deal in that realm, then how could one know or even care to know.


Many of us who trade for a living watch very carefully on a 24 hr bases what the relationships are between the majors.


AND l must tell you that ABE kept his word. He will continue as he already has to lower the YEN so the exports will increase and that will of course (or that should of course) help get Japan to get their house in order.


AND of course MARIO last week did his part as well to bring down the EURO.


Brazil is also doing their best and the REAL is finally coming back down.


Look at Vietnam. If increasing the value of the DONG was going to help them, they would have done it ages ago. But the increase hurts them...not helps them. Because....and this is the defining fact.... if currencies get stronger then EXPORTS WILL COST MORE, PERIOD. AND THEY WILL DECLINE. This will have a negative effect on production and jobs and that is the very thing you don't want!


Ponee, I have oversimplified all this because in truth currency manipulation also must be included in this as well as interest rates. And when people say..... just look at all the resources undergirding a currency... have them look at the RAND. Doesn't South Africa have the biggest diamond mines, gold mines and more.

Well... so why is the rand worth so little and will continue down that path?


If you get a chance to look at some of this you will understand better what really goes on. And yes countries try to find some balance between imports and exports, but rarely do. And that brings absolutely no consequence to the table as to the value of the currency. None!


May our GOD richly bless you and again thank you for your kindness.


Hope it helps,



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