DOLLAR SKY IS FALLING! DOLLAR SKY IS FALLING! EVERYONE PANIC!

10/25/2007 | Philistone

[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!

[Toddsterpatriot]

Well get used to it there whiz-bang,

I am.

I’ve taken a new interest in the topic of trade :)

Maybe you'll learn something.

Do you frequent the crevo threads?

Once or twice. Those idiots make you look bright.

[durasell]

Now, a question for all of you. Back in the days of yesteryear, what was the supposed allure of bimetallism?

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A gateway to homometallism?

[1COUNTER-MORTER-68]

Yes, yes...it’s freedom you see, so how could you possibly be against freedom (lol). They’ve put a great deal of thought and work behind it for sure. China did that with a great wall too :)
~~~
O’Noes !! Don’t get me started on walls-n-fences...LOL;0)

[John Leland 1789]

“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.”

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You are right. Let’s manufacture again! I’m NOT being sarcastic.

[Toddsterpatriot]

Now, a question for all of you. Back in the days of yesteryear, what was the supposed allure of bimetallism?

Not enough gold to back the money supply. Unless you like long term deflation.

[jedward]

Now there’s the real Toddsterpatriot shining through. Welcome back! We can all learn from you. I’m honored to post with you.

[durasell]

Jed — quit sucking up, he’ll just tell you how you shouldn’t be honored to post with him and you’re a fool if you think so.

[jedward]

You also realize our Manufacturing Capacity is pretty well in the toilet as well...

[Philistone]

Wrong.

[John Leland 1789]

I think only the Hong Kong Dollar is pegged to the U.S. Dollar. Not the Chinese RMB. At the beginning of 1990, when we first came to China, it was 5.5 to 1 USD. We have seen it fall in value almost to 8.5 to 1. That’s not pegged.

[Toddsterpatriot]

Importing 25% of our energy needs as oil is not the same thing as importing 25% of the oil we use.

[Toddsterpatriot]

ESL?

[jedward]

Yeah, I know :) What was I thinking? Only if it were my job would I even consider being pounded and prove wrong daily, only to get up and go through the same thing every day. Like nothing I’ve ever seen (lol)

[woofie]

Ive found if you print your own money its a lot cheaper

[Toddsterpatriot]

Then why do you get pounded and proven wrong daily?

[Philistone]

Look at the graphic again. It shows the percentage of all petroleum use, including that which goes to non-fuel related uses.

[Philistone]

That’s called either an “IPO” or “selling Bonds”.

Good work if you can get it.

[Toddsterpatriot]

Home > Energy Basics 101 > Basic Petroleum Statistics

Basic Petroleum Statistics (data for 2005 except where noted)

Gallons of Oil per Barrel	42
Barrels of Oil per Metric Ton (U.S.)	7.33
U.S. Crude Oil Production	5,178,000 barrels/day
State Ranking of Crude Oil Production	Texas - 1,062,000 barrels/day
U.S. Crude Oil Imports	10,126,000 barrels/day
U.S. Crude Oil Imports from OPEC	5,587,000 barrels/day
Top U.S. Crude Oil Supplier	Canada - 1,633,000 barrels/day
U.S. Petroleum Product Imports	3,588,000 barrels/day
U.S. Petroleum Product Imports from OPEC	771,000 barrels/day
U.S. Net Petroleum Imports	12,549,000 barrels/day
Top U.S. Total Petroleum Supplier	Canada - 2,181,000 barrels/day
Top Oil Producing Countries & Exporters	#1 - Saudi Arabia
Top Oil Consuming Countries & Importers	#1 - United States
U.S. Total Petroleum Exports	1,165,000 barrels/day
U.S. Petroleum Consumption	20,802,000 barrels/day
Dependence on Net Petroleum Imports	60.3%
Crude Oil Domestic First Price wellhead price (2006)	$59.68/barrel
Motor Gasoline Retail Prices U.S. City Average (2006)	$2.64/gallon
Regular Grade Motor Gasoline Retail Prices U.S. City Average (2006)	$2.59/gallon
Premium Motor Gasoline Retail Prices U.S. City Average	$2.81/gallon
Federal Motor Gasoline Tax	18.4 cents/gallon
U.S. Motor Gasoline Consumption	9,159,000 barrels/day (384.7 million gallons/day)
Share of US Oil Consumption for Transportation	69%
U.S. Average Home Heating Oil Price	$2.05/gallon (excluding taxes)
Number of U.S. Operable Petroleum Refineries	149
U.S. Refiners Ranked Capacity (1/1/2006)	#1 - Baytown, Texas (ExxonMobil) 562,500 barrels/day
Top U.S. Petroleum Refining States	#1 - Texas 4,241,000 barrels/day
U.S. Proved Reserves of Crude Oil as of December 31, 2005	21,757 million barrels
Top U.S. Oil Fields 2005	Prudhoe Bay, AK
Top U.S. Producing Companies 2005	BP - 827,000 barrels/day
U.S. Strategic Petroleum Reserve	685 million barrels
Total World Oil Supply (2006)	84,511,000 barrels/day
Total World Petroleum Consumption (2005)	84,538,000 barrels/day
more Petroleum Data & Information...

Basic Petroleum Statistics

[SwankyC]

Foreign labor costs are relatively higher than local labor costs (more American jobs).

Uhhhh, no labor costs just WENT UP. An outsourced job does NOT cost more than the American equivalent.

[Philistone]

Try comparing apples with apples and then we’ll talk.