Gimmie Dem Gum-Bawls,,,Gimmie...;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!
There’s been a lot of propaganda spread, even on this site concerning economics & trade...as you well know. If the kid buying gumballs can figure it out, I would hope all freepers could see it (lol). ;)
Depends on from where the gumball comes. If it comes from Europe, then yeah, too bad it costs more.
If it comes from China then it costs the same.
If it comes from America, it also costs the same.
Gimmie Dem Gum-Bawls,,,Gimmie...;0)
Correct. That is the single most important thing to the American way of life. People don’t have a clue how critical it is.
And a weak dollar makes it more likely that the oil exporting nations will demand other currencies to buy oil.
And that would be a disaster.
Only 4 months out of date...at least they tried :)
Um....judging by numerous posts here, I think you're asking a lot, foflol!
“If it comes from China then it costs the same.
If it comes from America, it also costs the same.”
How’s that?
Damn, I see that. Who knows...maybe I can learn something tonight :)
Just about at that point, so it seems (LMAO)! Great Pic!
The mind...it’s a shameful thing to waste, lol.
We are always learning something, jedward....our eyes are open to the truth. : )
“And a weak dollar makes it more likely that the oil exporting nations will demand other currencies to buy oil.
And that would be a disaster.”
They’re already doing it in the Mideast. Started a few weeks back and will keep on and on and on. This train wreck has even been predicted of the US by virtually every other nation. Who know...maybe us and the rest of the world are wrong. /s
This is true. I shouldn’t have asked my one question, as I don’t even want to mess with it. I now how this person’s mind thinks and I’m not out to change it. But people do need to hear the counter to it for sure. Magicical Number Games is what most of it is. You can’t bypass the things you mentioned, like what wages are being paid in china? Will China’s corporate profits be higher than ours, etc. etc.. Always comes back to the ole’ flesh wouund. We’re going to cut off both arms and one leg, tell you not to whine about it and then apologize and let us know how it truely was in our best interest.
It’s unbelievable to me that in a time of war... we as a country have not been asked to sacrifice more for this effort. IMHO this is where Bush has failed as a president. He failed to unite us. He should have opened up ANWAR and and mandated Nuke and Coal eletric plants from the start of this war. BY EXECUTIVE ORDER.
We could have been 2 to 4 years away by now from a massive reduction in petroleum prices. We could have been close to self-sufficiency if we had stepped up our coal-fired boiler capacity.
1) 90% of the American economy is local - either locally produced (groceries) or produced in America even though foreign owned (Honda, Toyota, Hyundai, Daimler-Chrysler).
2) Reserve currency? Where else are they going to put it? ECB? Russia? China? If these countries were any good they wouldn’t NEED a reserve currency.
3) You help make my point. OPEC has no desire to see the value of their assets disintigrate. As for China, as long as the Yuan is linked to the Dollar, who cares?
4) I question your definition of “inflation”. Some imports will be more expensive. Other local alternatives will become relatively cheaper.
5)6) The SIZE of current international money markets makes it impossible for any one company to decide what value of the dollar would most benefit it.
Tell me what the opposite of “pure capitalism” is and maybe we can talk...
“Because the domestic purchasing power of the dollar has not fallen with the exchange rate”
Can you explain that please.
“The gumball exporter will be stuck chewing his own inventory until there is a correction.”
Let’s say this is a US company. He won’t sit for long. He’ll sustain losses until forced out of business, no?
I hereby declare this “The Official GumBall Thread” (LOL)
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