Dollar hit 1.52 vs the euro today. For Fon this is not tragic because our routers, the Foneras are priced in dollars and in the last 2 years the dollar has gone down over 30% and so has the cost of our routers when measured in euros. On the negative our labor costs are mostly in euros and labor costs are by far the biggest at Fon cause we are mostly a software company. But never mind Fon. When will the dollar reach a value that makes the financial world crack? When will the Arabs for example stop taking dollars cause they can´t afford their vacations in Marbella and St Tropez anymore and the US is seen as hostile anyway? When will the Chinese stop taking US debt because they get tired that the US government then blocks them on most company purchases they want to do for security reasons? And when will the US suffer serious inflation because of the high cost of imports such as oil that can be replaced? And on top of these issues there´s a bigger one and that is, can the US continue to be the world´s biggest debtor and the globala superpower at the same time?
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