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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.
by 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 agoThat's measurable via inflation, which has been remarkably low over the past decade.
- wavefunction 8y agoUsually, 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 agoI 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."