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Can you elaborate on this. https://www.xe.com/currencycharts/?from=USD&to=EUR&view=10Y https://www.xe.com/currencycharts/?from=USD&to=EUR&view=10Y This shows

Can you elaborate on this. https://www.xe.com/currencycharts/?from=USD&to=EUR&view=10Y https://www.xe.com/currencycharts/?from=USD&to=EUR&view=10Y This shows that USD is actually worth more than the Euro over the past 10 years. What exactly is the USD devalued relative to that caused a stock market boom?

dnautics 8y ago
has cost of living tracked wages?
- the_gastropod 8y ago
  Cost of living is measured via the "basket of goods" used in inflation measurements. Inflation has been extremely low over the past decade. I think the likelier conclusion is: the market isn't up because of currency devaluation.
  - dnautics 8y ago
    no it's not. Cost of living is a different calculation than CPI.
    - the_gastropod 8y ago
      Ok, I'll play: show me a reputable COLI that went up 323% over the past decade.
wavefunction 8y ago
It could be (which I believe) that both the USD and EUR are worth less to real goods and services while the USD is relatively higher than the Euro.
- the_gastropod 8y ago
  That's measurable via inflation, which has been remarkably low over the past decade.
  - wavefunction 8y ago
    Usually, yes. However you can substitute lower quality ingredients, or you can implement a "shrinkflation" strategy: https://steemit.com/money/@dedicatedguy/shrinkflation-selling-less-product-for-the-same-price https://steemit.com/money/@dedicatedguy/shrinkflation-sellin... You can also manipulate prices at scale where you raise the price of some goods in the CPI basket while lowering others keeping "inflation" or CPI "low." If the marginal profit on the goods you're lowering was already relatively high and the marginal profit on the goods you are raising was low, you could find a point of arbitrage where you come out ahead on profit without moving the needle on inflation.
- chollida1 8y ago
  > It could be (which I believe) that both the USD and EUR are worth less to real goods and services while the USD is relatively higher than the Euro. Sure but the original poster made a specific claim, how does this give us a huge bull market? I mean currency devaluation leads to inflation which is how you cool a market and we are trying to explain why we have a bull market. So this fails a very simple first pass.
  - wavefunction 8y ago
    I would be replying to the original poster if I were replying to the original poster, wouldn't I? I was replying to the post with a claim about EUR and USD "relative values."
hew 8y ago
Real goods -- like pieces of companies (stocks) or tangible assets (housing, etc). In my layman opinion -- the western central banks are in cahoots continually "soft landing" (optimistic) or manipulating (pessimistic) and at an accelerated rate since 2008. The marketing isn't booming up. The nominal metric is falling rapidly.

dnautics 8y ago

has cost of living tracked wages?

the_gastropod 8y ago
Cost of living is measured via the "basket of goods" used in inflation measurements. Inflation has been extremely low over the past decade. I think the likelier conclusion is: the market isn't up because of currency devaluation.
- dnautics 8y ago
  no it's not. Cost of living is a different calculation than CPI.
  - the_gastropod 8y ago
    Ok, I'll play: show me a reputable COLI that went up 323% over the past decade.

wavefunction 8y ago

It could be (which I believe) that both the USD and EUR are worth less to real goods and services while the USD is relatively higher than the Euro.

the_gastropod 8y ago
That's measurable via inflation, which has been remarkably low over the past decade.
- wavefunction 8y ago
  Usually, yes. However you can substitute lower quality ingredients, or you can implement a "shrinkflation" strategy: https://steemit.com/money/@dedicatedguy/shrinkflation-selling-less-product-for-the-same-price https://steemit.com/money/@dedicatedguy/shrinkflation-sellin... You can also manipulate prices at scale where you raise the price of some goods in the CPI basket while lowering others keeping "inflation" or CPI "low." If the marginal profit on the goods you're lowering was already relatively high and the marginal profit on the goods you are raising was low, you could find a point of arbitrage where you come out ahead on profit without moving the needle on inflation.
chollida1 8y ago
> It could be (which I believe) that both the USD and EUR are worth less to real goods and services while the USD is relatively higher than the Euro. Sure but the original poster made a specific claim, how does this give us a huge bull market? I mean currency devaluation leads to inflation which is how you cool a market and we are trying to explain why we have a bull market. So this fails a very simple first pass.
- wavefunction 8y ago
  I would be replying to the original poster if I were replying to the original poster, wouldn't I? I was replying to the post with a claim about EUR and USD "relative values."

hew 8y ago

Real goods -- like pieces of companies (stocks) or tangible assets (housing, etc). In my layman opinion -- the western central banks are in cahoots continually "soft landing" (optimistic) or manipulating (pessimistic) and at an accelerated rate since 2008. The marketing isn't booming up. The nominal metric is falling rapidly.