Major Change in America’s Arbitrage over Asia?

I believe there’s a huge upcoming megatrend between world superpowers that’s receiving little attention/consideration.  Relatively inexpensive products and services from Asian countries will have a significantly reduced comparative advantage over North American/European products/services.

Why? As the value of American/European currencies–plagued by massive debt obligations–diminish, Asian goods/services will be relatively more expensive.   In other words, it will become decreasingly attractive to buy globally than domestically. Therefore, their buying power will be diminished and the huge arbitrage opportunity, which has lasted for decades, may become less lucrative for importers of cheap Asian products/services.

What are the implications to you as an individual?

If you’re seeking financial protection and stability, you should consider using inverse ETFs on the US dollar and/or buying foreign indexes to profit from the current and intensifying wealth redistribution.

If you’re an entrepreneur/marketer, there’s now an increased incentive to sell overseas because foreign Asian currencies will be worth relatively more.

If you’re seeking employment, you should consider increased education and/or jobs that expose you to doing business with Asian countries.

Facebooktwittergoogle_plusredditpinterestlinkedinmailby feather