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!
The statement said China will immediately value the currency at 8.11 yuan, down 2 percent from the 8.28 rate previously. It also said it will now peg the yuan against a "market basket" of numerous currencies, although it will keep the yuan in a tight band rather than letting it trade freely. But the central bank did promise that the exchange rate band would be adjusted when necessary according to market developments as well as economic and financial situations.
The Yuan is still tied to the Dollar even if the tie is a little looser...
I guess we can start hiring more folks at home... and everything is in balance.
A weaker dollar has pros and cons. I guess I am wondering, like I think some people are on this thread, is when to be genuinely worried if the dollar keeps falling? What is the level where you’d actually try to do something, and what would that something be? I mean a lot of people would want to protect their accumulated wealth and to see their savings only be able to buy half of what it used to....
A weaker dollar has pros and cons. I guess I am wondering, like I think some people are on this thread, is when to be genuinely worried if the dollar keeps falling? What is the level where you’d actually try to do something, and what would that something be? I mean a lot of people would want to protect their accumulated wealth and to see their savings only be able to buy half of what it used to....
The only professional responsibility people like that have is to their investors.
That sounds good...so does "We were just following orders!".
And Bill Gates is not an investment manager, Jim Rogers and George Soros now invest chiefly for their own accounts, and nobody is forcing Warren Buffett to make currency bets in Berkshire-Hathaway.
That’s hilarious!!! Geehad on Gum-Bawls (too funni)!!!!!!
Then his daddy worked for a stupid company. A smart company would say: “Hey! Sugar and starch are a lot cheaper in America now! Lets start buying from American producers and we can make gumballs cheaper. And use ‘Merkins to boot to make ‘em since they know our production techniques!”
For gosh sakes man, do you have any idea how many germs there are on your toilet flush handle?
Worry about something you can do something about!
[/sarcasm]
I was addressing folks who invest on behalf of other people or organizations. If they don’t follow the highest returns possible in a legal manner then they are not doing their jobs.
“even if the tie is a little looser...”
Sorry guy, with all due respect, you lose me there. Economics is a solid enough subject that getting loose with key items is something I just don’t subscribe to. Others have tried that with the Trade issue, and I just don’t drink the cool-aid.
I want 3 gumballs, no loose connections.
Yeah, Jedward. Guess he told us, huh?
And don't read this one either: How China Could Crash the US Dollar on a Whim
Up until two years ago, China’s currency, the RMB or Yuan, was pegged to the Dollar.
. . .
In short, China has several economic “weapons” at its disposal for countering the US, ranging from the manipulation of its currency to the diversification of its burgeoning stock of forex reserves. It also has several less blunt options to choose from, such as enabling Chinese companies to compete more directly and effectively with US companies, and opposing the US in securing a domestic energy supply. On all of these fronts, the US is essentially being held hostage, since it has become so dependent on China as the world’s factory. Ultimately, it seems unlikely that China will deliberately butt heads with the US unless it is first provoked, but America should nonetheless be on its guard, since its economy hangs in the balance.
That’s a different question.
Oil is priced in dollars. Which means that OPEC gets less value for each dollar they receive when the value of the dollar goes down. Thus the price goes up to compensate.
The LAST thing OPEC wants is for America to develop complete energy independence (’cause then where would they be?).
The relationship between the price of oil and the value of the dollar globally has not been extensively studied. It should be.
Most toilets are actually fairly clean.
Telephones and kitchen counters are cesspools by comparison.
Please elaborate on the "available" alternative fuel - and how long a sign you think we need of above $50 oil.
Please, think before you post.
China has close to a trillion dollars of currency reserves.
What would be the value of that if they decided to sell it all at once?
What happens when you flood the market with anything? The value drops immensely.
Does China really want to sell a trillion dollars worth of assets for $200 Billion?
Don’t think so.
Yeah, right.
Silly questions, you ask. What makes you think the Chinese would “sell it all at once?”
LOL. I am truely a humble person. I don’t mind being told, bud damn...at least be right :) (LOL) I’m seriously thinking the talking point memos have not been circulated to all those that...how shall I say...push this type of stuff. The FreeTraders have walked into the same mudhole several times.
On that note, I’m heading to bed soon! Nite all...
It is another powerful argument to Americans that to save $ is to be leaning over ready to get screwed by uncle sam.
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