Yen, Franc Climb Toward Records as U.S. Delays Debt Limit Vote

Bussiness Week ^

[RonBush]

The yen and Swiss franc rose toward record levels against the dollar after U.S. lawmakers delayed a vote on a plan to raise the debt limit to avert a default, boosting demand for refuge currencies.

[RonBush]

This is noting to be too upset about. Currencies go up and down. When the dollar goes down it means our products are cheaper in other countries and we import more, which could be good for jobs here. On the other hand imports to the USA are more expensive so our cost of living goes up.

[RonBush]

Please excuse my type in the previous post. I said import when I meant export. What I meant to say was:

When the dollar goes down it means our products are cheaper in other countries and we export more, which could be good for jobs here.

[antceecee]

I would just ask that people take a moment and contemplate the difference between the two countries and then if you wish to panic, I think you need meds.

[montanajoe]

Folks who believe this is nothing to be upset about are loons pure and simple.

Defaulting on the US debt is madness and I am at a loss as to why anyone calling themselves a conservative would even consider it.

By the way as the dollar sinks the price of oil increases, as well as interest on the all ready existing US debt. Try telling the rest of the third world a falling currency and rating downgrades are no big deal..

[shibumi]

The poster expounds -

"This is noting to be too upset about. Currencies go up and down. When the dollar goes down it means our products are cheaper in other countries and we import more, which could be good for jobs here. On the other hand imports to the USA are more expensive so our cost of living goes up."

The crowd reacts -

[BfloGuy]

Defaulting on the US debt is madness

But we're not going to default on the debt. You don't really still believe that, do you?

as the dollar sinks the price of oil increases

Correct. Making it even more profitable to drill here.

as well as interest on the all ready existing US debt

No. Interest rates on existing debt remain the same. New debt? That's a different story.

Look. The dollar has been overvalued for decades. That, combined with eternal inflation, is what has led to our chronic trade deficit. It's cheaper to buy foreign goods than to make them here.

Now, I wish we weren't in the crisis that is causing the dollar to drop and there are certainly bad aspects to it, but it isn't a disaster, either. Though it will certainly be portrayed that way.

[montanajoe]

As I say its madness I also know its impossible to reason with the insane...;)

I have no confidence in our so called leaders of both parties nor in the idiots that keep electing them..

[Absolutely Nobama]

Sure, nothing to worry about....Greece, Spain, Portugal...all doing fan-diddily-tastic.....

Yes sirreeee..... All those riots....attempted communist takeovers....Gimme some o’ that! /s