Japan recently let their currency collapse.
You don't hear much about it, but this policy is deliberate because in creates inflation for the local economy and lowers the cost of their exports to other countries.
It turns out the Japanese aren't alone in devaluating their currency. In the following chart I compare the US Dollar to the currencies of our major trading partners excluding China. All have done a remarkable job of devaluing vis-a-vis the dollar, creating a competitive edge for their native industries and a reason for our manufacturing to move off-shore.
Robert Lloyd, CFA®
Chief Investment Officer
Lloyds Intrepid Wealth Management
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