SHI 7.20.22 – Gone Fishing

Not really, but I will be on vacation when July 20th rolls around.   I forgot to mention this fact in my last blog.

So there will be no SHI20 update next week.   Instead, I will leave you with a brief thought and graphic today.

Did you hear that the US dollar is almost equal in value to 1 euro?   Across the globe, in recent months, the dollar has been “devaluing” the currencies of other countries.  The extent is unusual — like so many other things these days — and the implications are numerous.   But for today, two are worth mentioning.   First, the graphic:

When the USD grows stronger against the currencies of our “trading partners” then their exports — conversely our imports — are less expensive.  For us here in the US.   Typically, that means that American exports decline and our imports increase.  Makes sense, right?

On one hand, lower-priced imports helps bring down American consumer product inflation.  On the other hand, it also brings down GDP growth figures.  The first ‘print’ of the Q2, 2022 GDP numbers will be released on July 28th.  This will be a  VERY INTERESTING  report, for many reasons.

Have you been thinking about traveling to Japan?  Well, now’s a good time to go.  Japan is on sale.  Today, the USD buys about 17% more stuff than it did last year.  That’s like a “buy-5 sushi, get one free” sale!

I’ll leave you with the above thoughts to ponder while I’m on vacation.    Rest assured, I’ll cover this in more detail upon my return … and wherever I go, I’m bringing my US dollars.  They are worth a lot more these days.

<:>  Terry Liebman