Posted on 10/25/2007 8:12:27 PM PDT by Philistone
To read the MSM headlines (which I try not to) the falling dollar is the end of the world. Maybe Wall Street should get a Noble Prize for their work in "Global Dollar Cooling". But seriously, what are the effects of a weak dollar?
1) Increased exports. Last month's exports were among the highest on record. Trade deficit? What trade deficit? Boeing, Caterpiller, Microsoft, Apple, etc. all with surges in foreign export sales.
2) Outsourcing? What outsourcing? All of the sudden it becomes cheaper to employ an American technician than one from Bangalore.
3) Cost of living? (I love this part!) Since China has pegged the Yuan to the Dollar, everything we get from China costs exactly the same! Maybe this will convince them to unlink the Yuan. Then we'll REALLY see who's the best producer.
4) Buhh... buhh... buhh... but foreigners will stop buying American Treasuries! What? In order to buy Russian ones? Chinese ones? Venezualian ones? Give me a break.
A weak Dollar equals: more exports, more jobs, more tourists (spending money) and the same or higher standard of living.
Bring it on!
it means europe is getting screwed
Last week it was global warming, then this week it was MRSA infections and other super bugs, now you are telling me it the weakening dollar.
Help...
It is not my turn to panic. It won’t be the next time either.
TRADE DEFICIT SHRINKING— WHY CAN’T BUSH MAKE IT BIGGER
Yes, but they did it to themselves.
A weaker dollar means less purchasing power for Americans with savings (in dollars) - especially middle or lower-middle-class Americans. True, there are “inflation-adjusted” things, such as T-bills, but they are far from sufficient to compensate for the real cost of living increase. It is in the interest of the government to understate the actual level of inflation, and therefore, to confiscate wealth from the unprepared or unwary, by making dollars more numerous and therefore less valuable.
right but the MSM doesn’t want europe to be worse so they carry on about how bad the dollar is in order to get politicians to ruin our economy in order to achieve parity with europe.
Pffft. If you believe that, then short the dollar.
Put your money on the line, then talk to me when your options expire.
The falling dollar is a pay cut for every American that has to buy imports. Which is pretty much every American. But let’s keep borrowing and borrowing.
>the MSM doesn’t want europe to be worse ...
Couldn’t agree more.
Don’t drink the Kool-Aid. The dollar is not falling INSIDE America, only outside.
You can still go to Wal-Mart and buy Chinese goods for EXACTLY THE SAME PRICE AS YOU PAID YESTERDAY! Because the Chinese currency is linked to the Dollar.
Yeah, the price of gas has gone up again, but that has nothing to do with the value of the Dollar on world markets.
Baloney. It is a two way street.
Ping.
And what happens to the cost of oil and all the other raw resources that we import to make things?
The falling value of the dollar does NOT improve our standard of living. It makes every American poorer relative to the rest of the world.
Good points. Here’s a thought...
A kid walks into a store and goes up to the counter and asks the owner for 3 giant gumballs. The kid then puts their dollar bill on the counter and smiles, awaiting their favorite gumball colors. The owner said “I’m so sorry dear child, but you can no longer have 3 gumballs for a dollar, but I can give you two.” The kid said “I don’t understand”. The owner simply replied “You see that one dollar bill you put on the counter? Well, that dollar bill isn’t as valuable today as it was yesterday, so you get 1 less gumball now.” The kid replied “So this is what that guy on TV was talking about when he said a weaker dollar is a good thing.” The kid snatches their dollar off the counter and says “That jerk must not chew gumballs. Damn experts.” And the store owner just frowned and watched the kid leave without buying anything.
‘All of the sudden it becomes cheaper to employ an American technician than one from Bangalore.’
Some hyperbole tonight I see.
a strong euro can mean deflation and that is not good.
Ping (lol)
How does that work, exactly?
In July: Yuan Peg to Dollar Scrapped
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