BWAhahahaha,,,;0)
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!
Yes, I understood what you meant, and you’re correct. But, again, no investment manager is forced to speculate in currency, and, in particular, none is forced to short the dollar.
What difference does it make?
As soon as it leaks out that they’re selling, the results are the same.
An analogy I like to use is Bill Gates. “He’s worth $50 Billion dollars!”
Until it becomes known that he’s selling off Microsoft stock. Then everyone sells and his value drops to 3 billion...
How can you blame them for understanding what is going on, and acting on it. The US government is to blame for the increasing worthlessness of the $, not the people who comprehend the fraud.
There is if I say so...
*stomping feet*
(is my temper tantrum changing reality?? : )
The currency traders see no difference in currencies — no patriotism attached to the dollar at all. It’s just another commodity, like gold, silver or oil.
Is that the correct attitude? I don’t know. On the one hand they could play all kinds of mishief with the economy. However, on the other hand, they are like the canaries in the coal mine who pick up the first hint that something ain’t right with the dollar.
And it’s firmly on it’s way toward $100 as well. The GumBall story really is good learning thing. You see when the kid gets home, they find out that daddy lost his job today at the local gumball factory. The father’s company bought too many of their ingredients for the gumballs from china, and well...that dollar value thingy caused them to tighten the belt quite a bit and try cut some labor costs (jobs) to make up the difference.
~~~
IMHO it will be at $100 before Christmas,,,that heating oil
thingie in the NE US,,,no way around it,,,
Dad’s job that bought the Gum-Bawls will go to Mexico/Hell
And Jr. will be SOL,,,
Like the Buick Roadmaster factory did some years back,,,
Americans lost jobs and the price didn’t come down one penny...
But,,,Hey,,,As long as it skrooes the UAW,,,Who Cares,,,
Rite ?...(shakin’head)...
Welcome To The New World Order...
Wrong.
BUMP!
And we still haven't seen all of it yet, I'm afraid.
Let’s put it this way...
Let’s say you have a home, some acreage, a garden and some horses.
Someone comes along and tells you “Hey! I’d be willing to trade you that for 4 BMWs and an Airbus 380.”
Then a month later the guy comes back and says: “Ya know, your stuff is only worth 2 BMWs and half an Airbus 380.”
The point is you still have the home, the acreage, the garden and some horses.
Same with the Dollar versus other currencies.
Nope...I am happy to have 2 dozen FReepers who understand the world......yourself included!
I’d settle for understanding my DVD player.
BWAhahahaha,,,;0)
:-0 Americans don’t travel much.....the should...it is a dam shame!
Nite you guys...don’t chew the yellow gum-balls :)
How so? (need I ask?)
Thanks for the reply. I get what you are saying from your example.
But isn’t there a point where you kind of get worried, like to carry your story out further, more time goes by and the guy says, “Now your stuff is only worth a six pack of Guinness.”
I mean isn’t that kind of what happens when a currency tanks internationally? Nobody wants to trade in it anymore because it isn’t worth anything. Rubles? Zimbabwe dollars?
I will endeavor to refrain :-)
I prefer the pink ones. (bubble gum flavor : )
Nite, jed.
“I’d settle for understanding my DVD player.”
Got me there :-)
I am not a technoweenie!
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.