Thread: Costco
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Old 07-17-2012, 10:32 AM   #34
Fearsome Forehand
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Join Date: Aug 2007
Location: USA
Posts: 1,183

Originally Posted by r2473 View Post
does costco buy everything from foreign suppliers?

if not, then the "value" of the dollar (purchasing power) will primarily be based on inflation (and supply, etc). but not exchange rates.

"inflation rates soar"......perhaps. but balancing inflation and growth is job #1 for the fed (and they are pretty good at it)
Pretty easy to control inflation if there is no demand/growth.

While exchange rates certainly affect the cost of foreign goods and well as exports (the yin/yan of a weak or strong currency), you can't ignore the printing of huge amounts of currency in devaluing the existing stock. (Let's not even talk about the insane debt burden.) Mark my words, once the economy recovers, the chickens will come home to roost and we will have a period of stagnation combined with high inflation and high interest rates a la the Carter years.

Current US Fiscal policy is absolutely suicidal. Not a good thing. The plan seems to be to monetize the debt.

That said, it is obvious Costco is the prime mover and is clearly evil.

Like the unemployment rate, the inflation rate is all in the way it is calculated. As always, the devil is in the details

Last edited by Fearsome Forehand; 07-17-2012 at 10:35 AM.
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