Well, the cost of shipping has increased of late. Here is the Baltic Dry Index:
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!
See #52 for the correct economic analysis.
Yep. 'tis just a flesh wound. You'll like how it feeeeeels after awhile, being free of those arms and legs. : )
See #52 for the correct economic analysis.
Because the Chinese currency is linked to the Dollar. If the Dollar drops, than so does the Yuan. Everything comes out even.
If it’s produced using American materials in American factories, than the price of the gumball remains unchanged regardless of what the value of the Dollar is in foreign countries.
Today...for you...special price (lol) 2 Gumball, 1 Dollar
Next Year...for you...special price. 1 Gumball, 1 Dollar
5 years, now only accepting Zimbabwe currency, we are like you and begging for a single gumball (LOL)
haaaaaaaaa
Here’s the deal.......We are losing our manufacturing base to Asia. I have lived in Asia for 3 of the past 7 years. Hewlett Packard is in Malaysia, not the USA. American high school scholars are going to Wharton, not MIT.....no future for American engineers. China has us by the balls! Our House and Senate has been bought and paid for by big companies who want cheap labor. Why? because their bonuses are tied to the stock market, so every quarter, they whore everything to get their dough. This started about 15-18 years ago. This is the aftermath.
gosh.......it’s just gum balls!! : )
~~~
With oil at over $90.00 a barrel,,,
There is no such thing as “Just a Gum-Bawl”...;0)
Oil is the life blood of the US economy. A substantial rise in the price of oil will result in substantial inflation. When oil is $100/barrel...and gas $4/gallon...this economy will depress 10-15%.
Yeah, bring it on.
Dollar falls far enough maybe the led based Chinese crap will become too expensive and we will start buying American again.
“Because the Chinese currency is linked to the Dollar. If the Dollar drops, than so does the Yuan. Everything comes out even.”
Where are you getting this from? It’s US dollar is not linked or pegged to the Yuan.
_____________________________________________
China revalues yuan
Move away from fixed dollar peg could lessen competition for U.S. firms, raise import prices.
July 21, 2005: 4:01 PM EDT
By Chris Isidore, CNN/Money senior writer
NEW YORK (CNN/Money) - In a move that could trim the trade gap with the United States, China revalued its currency higher against the dollar Thursday and said it would no longer have the yuan tied to a fixed rate against the U.S. currency.
http://money.cnn.com/2005/07/21/news/international/china_yuan/index.htm
________________________________________________
Here’s today’s xchr
Friday, October 26, 2007
1 US Dollar = 7.49241 Chinese Yuan Renminbi
1 Chinese Yuan Renminbi (CNY) = 0.13347 US Dollar (USD)
Interbank rate +/- 0%
This means:
You buy 1 US Dollar : 7.49241 Chinese Yuan Renminbi
You sell 1 US Dollar : 7.47241 Chinese Yuan Renminbi
You buy 1 Chinese Yuan Renminbi : 0.13347 US Dollar
You sell 1 Chinese Yuan Renminbi : 0.13383 US Dollar
Please, don't exclaim. You might wake up Philistone.
He's dreaming that we've got the Chinese by the balls.
Well, the cost of shipping has increased of late. Here is the Baltic Dry Index:
LMAO! I wish more FReepers knew what I know......but you have to travel extensively to understand the impact.
The only professional responsibility people like that have is to their investors.
The price of gasoline is a virtual tax on everything you buy that is transported. Congress essentially doubled the price of corn by promoting that moronic ethanol initiative, again (it was a bad idea in the 80’s too.)
The cost of food and energy are through the roof.
My question - What role does the dollar have in all of that? I actually don’t know.
I DO know, however, that discretionary spending is down. Businesses like car repair facilities, and other indicator businesses are showing that the economy is slowing from the standpoint of average wage earners. National inflation numbers don’t track this.
“I’m sure that these great American patriots are still shorting the dollar: Warren Buffett, Bill Gates, George Soros, Jim Rogers. These guys (and their ilk) would never allow a silly notion like love of country to interfere with their determination to add additional billions to their already gargantuan fortunes.”
You have no idea how true your words are!
ALLAH_ALLAH_FUBAR...;0)
“With oil at over $90.00 a barrel,,,
There is no such thing as “Just a Gum-Bawl”...;0)”
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.
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.