2 thoughts on “IPod, China and the falling dollar”

  1. A well-written piece based on pretty poor analysis. First, it is pretty pointless to talk about an discount in currencies as it is difficult to peg the true value of a currency at any given point. But assuming that foreign investors will accept 3 % nominal interest rates on dollar denominated bonds when the currency is devaluating rapidly is just dumb. The Economist did a pretty good piece on the risks of a falling dollar some weeks ago.

    On the other hand, the argument that doing value-adding stuff is better than doing basic assembly is right.

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