Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

US Dollar has sunk to record lows against Euro
http://news.scotsman.com/latest.cfm?id=3759014 ^ | me

Posted on 11/27/2004 10:24:13 AM PST by soccer_linux_mozilla

The United States’ trade deficit is soaring and the once high-flying dollar has sunk to record lows against Europe’s common currency.

The dollar’s record low against the euro coincided with the government’s report that the United States was running a trade deficit through September at annual rate of 592 billion dollars. That compares with last year’s record 496 dollars billion. As a result, the country is having to borrow almost 600 billion dollars from overseas this year to pay for the imported cars, televisions and other items Americans are buying.



TOPICS: Business/Economy
KEYWORDS: currency; deficit; dollar; euro; federalreserve; trade; tradedeficit
Navigation: use the links below to view more comments.
first previous 1-20 ... 401-420421-440441-460 ... 481 next last
To: Southack
Only when you don't answer the question. On prior threads I've agreed with you more often than not. In this case you're just wrong.

So, what causes inflation?

421 posted on 11/29/2004 12:04:12 PM PST by Toddsterpatriot (Protectionists give me the Willies!!!)
[ Post Reply | Private Reply | To 420 | View Replies]

To: Toddsterpatriot
"In this case you're just wrong."

It's a 400+ post thread, could you be a bit more specific about your above claim, please?

422 posted on 11/29/2004 12:05:27 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
[ Post Reply | Private Reply | To 421 | View Replies]

To: Southack
Economic growth is deflationary.

What do you think causes inflation?

423 posted on 11/29/2004 12:08:46 PM PST by Toddsterpatriot (Protectionists give me the Willies!!!)
[ Post Reply | Private Reply | To 422 | View Replies]

To: Toddsterpatriot
"Inflation is a monetary phenomenon."
424 posted on 11/29/2004 12:09:38 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
[ Post Reply | Private Reply | To 423 | View Replies]

To: Southack
Inflation

2 : an increase in the volume of money and credit relative to available goods and services resulting in a continuing rise in the general price level

Deflation

2 : a contraction in the volume of available money or credit that results in a general decline in prices

So, you see that if the money supply increases more than GDP, you get inflation. Everything else remaining the same, an increase in GDP would be deflationary.

425 posted on 11/29/2004 12:19:56 PM PST by Toddsterpatriot (Protectionists give me the Willies!!!)
[ Post Reply | Private Reply | To 424 | View Replies]

To: Toddsterpatriot
"an increase in GDP would be deflationary."

An increase in GDP is *not* a monetary phenomenon.

426 posted on 11/29/2004 12:50:56 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
[ Post Reply | Private Reply | To 425 | View Replies]

To: Southack

Is an increase in GDP deflationary?


427 posted on 11/29/2004 1:14:56 PM PST by Toddsterpatriot (Protectionists give me the Willies!!!)
[ Post Reply | Private Reply | To 426 | View Replies]

To: Toddsterpatriot

That's a useless question.

A somewhat more useful question would be if an increase in GDP causes deflation.

428 posted on 11/29/2004 1:17:55 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
[ Post Reply | Private Reply | To 427 | View Replies]

To: Southack
U.S. manufacturing *will* return to the U.S. as the free market devalues the Dollar. It will simply become cheaper and quicker to make higher quality products here than over there, and the Invisible Hand of capitalism will do the rest...

I partially agree with your reasoning...a weaker, or should I say a "closer to reality" valued dollar will make American goods more attractive, it can revive certain manufacturing industries (steel, textiles, plastics, etc.) However...there are a few things that have been left out in your reasoning...what about oil that must be bought overseas. A weaker dollar would translate into higher oil prices no? How much of the benefit from a weaker dollar would be realized by U.S. industry when coupled with higher gas/diesel/jet fuel prices? I'm thinking that since U.S. companies would still be subjected to tyrannical taxation, ridiculous environmental regulations, and union overhead that this scenario would be a wash at best...no better than we were before. Secondly, how many of those said industries do we actually still have physical plants and infrastructure for? (i.e. companies will not simply be returning to old factories, flipping the switches back on, getting people hired, and getting back to work overnight).

429 posted on 11/29/2004 1:18:36 PM PST by BureaucratusMaximus ("We're going to take things away from you on behalf of the common good" - Hillary Clinton)
[ Post Reply | Private Reply | To 324 | View Replies]

To: Southack
A somewhat more useful question would be if an increase in GDP causes deflation.

Survey says........?

430 posted on 11/29/2004 1:20:30 PM PST by Toddsterpatriot (Protectionists give me the Willies!!!)
[ Post Reply | Private Reply | To 428 | View Replies]

To: groanup
I didn't say I thought he should do anything to stop the fall, even if he could. My point was about John Q. Public's perception of events and what Bush says. So, they have unreal expectations based on their misperceptions...
431 posted on 11/29/2004 2:20:55 PM PST by txrangerette
[ Post Reply | Private Reply | To 187 | View Replies]

To: txrangerette
Which brings up another dilemma for leaders: they can't say something to the effect of "don't worry about the dollar, it will stop falling one of these days." But they also can't panic investors by being panicked themselves.

"This biggest misperception the public has about investing is that the markets are supposed to make sense." Richard Dennis.

432 posted on 11/29/2004 2:56:15 PM PST by groanup (Rats are afraid of the light so spread a little sunshine.)
[ Post Reply | Private Reply | To 431 | View Replies]

Comment #433 Removed by Moderator

Comment #434 Removed by Moderator

To: Southack
On the one hand you claim that economic growth is deflationary, but on the other hand you claim that deflation is strictly a monetary phenomenon.

Economic growth is different than "monetary phenomenon," thus, you are disagreeing with yourself.

Inflation is a monetary phenomenon.
Deflation is a monetary phenomenon.
GDP growth is deflationary.
GDP growth is not deflation.

That "ary" on the end of that word changes the meaning.

Maybe if you understood what the Federal Reserve did, you wouldn't be so confused.

435 posted on 11/29/2004 4:22:57 PM PST by Toddsterpatriot (Protectionists give me the Willies!!!)
[ Post Reply | Private Reply | To 418 | View Replies]

To: Toddsterpatriot
"Maybe if you understood what the Federal Reserve did, you wouldn't be so confused."

Maybe you should stick to the topic at hand, rather than delving into the esoteric distinctions between "deflation" from that of "deflationary."

Not everyone wants to spin their wheels over mere symantics, after all.

436 posted on 11/29/2004 4:25:47 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
[ Post Reply | Private Reply | To 435 | View Replies]

To: soccer_linux_mozilla

Bump 4 bookmark


437 posted on 11/29/2004 4:27:27 PM PST by The SISU kid (I'm the swizzle stick in the cocktail of life)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Southack
Maybe you should stick to the topic at hand, rather than delving into the esoteric distinctions between "deflation" from that of "deflationary."

Esoteric? More like basic. Deflation (inflation) is deflation (inflation). Something that is deflationary (inflationary) causes deflation (inflation).

GDP growth is deflationary, causes (not is) deflation.

Not everyone wants to spin their wheels over mere symantics(sic), after all.

Semantics, is that what you call it when you use the wrong word?

438 posted on 11/29/2004 4:30:57 PM PST by Toddsterpatriot (Protectionists give me the Willies!!!)
[ Post Reply | Private Reply | To 436 | View Replies]

To: Southack
Maybe you should stick to the topic at hand

I thought I said that inflation was a monetary phenomenon? In that case, the Federal Reserve is the topic at hand.

439 posted on 11/29/2004 4:34:05 PM PST by Toddsterpatriot (Protectionists give me the Willies!!!)
[ Post Reply | Private Reply | To 436 | View Replies]

To: Toddsterpatriot
"GDP growth is deflationary, causes (not is) deflation."

No. In fact, the majority of the time GDP growth goes hand in glove with inflation.

Consider that office rents rise as a local economy heats up. Look at property prices in "hot" economic areas like Vegas.

It's only in the esoteric, academic world where one can filter out reality while focusing solely upon mere "theory" that anyone can really say with a straight face that GDP growth "causes" deflation.

Oh sure, in theory there can be cases where GDP growth actually causes deflation, but that's the exception. The rule is that most of the time we see higher prices as an area grows economically.

440 posted on 11/29/2004 4:43:31 PM PST by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
[ Post Reply | Private Reply | To 438 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 401-420421-440441-460 ... 481 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson