Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

When dollar falls, European exporters count their bruises
LA Times ^ | 17 November 2007 | Geraldine Baum

Posted on 11/17/2007 10:16:45 AM PST by shrinkermd

The euro's rise and dollar's slide are squeezing European exporters' profits or multiplying their losses, prompting layoffs and plant closings. Companies are not only curbing production of goods headed to U.S. buyers but also rethinking the way they do business.

The euro recently passed the record $1.47 mark, gaining 11.5% since the beginning of the year against the greenback. It closed Friday at $1.46; a dollar bought 0.68 euro.

Most emblematic of the problem has been the impact of the euro-dollar relationship on the aeronautics industry -- and particularly on France's Airbus, whose main rival is U.S.-based Boeing.

With a falling dollar making Boeing's products cheaper outside the U.S. and Airbus' more expensive, Louis Gallois, chief executive of Airbus' parent EADS, recently described the sinking U.S. currency as a "sword of Damocles" hanging over the company's future. He vowed to cut an additional 1 billion euros in operating costs by 2010 or 2011.

This would mean more layoffs at a company that is already purging 10,000 jobs, a decision made when one euro equaled $1.35.

Survival strategies

Less dramatic but no less crucial is the impact on other European companies that export sophisticated equipment, technology, cosmetics, cars and luxury goods. For firms that make a large portion of their sales in the United States or compete with firms that deal in dollars, survival depends on raising prices, cutting costs or hedging currencies.

The strong British pound, moribund Japanese yen and undervalued Chinese yuan also play roles in this tale of currency chaos, from a European exporter's perspective. Nearly every day, another company announces more lost earnings and job cuts and blames the currency commotion.

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; Culture/Society; Extended News
KEYWORDS: devaluation; dollar; trade
Navigation: use the links below to view more comments.
first previous 1-20 ... 341-360361-380381-400401-410 next last
To: dollarbull; Fan of Fiat
Borrowing and lending (or lending your own capital) isn't evil.

Excellent!

From previous discussions, I know that you know how fractional reserve lending works - i.e. that the banking system creates money out of thin air and then lends it out to "earn" interest.

And each individual bank lends out less than their deposits, so who is leaching and how?

By creating credit and then charging interest on it, they are extracting wealth from society in the exact same way that a counterfeiter would.

A bank takes in deposits of $1,000,000 and pays interest. They must hold some as a reserve and can lend out the rest. You'll have to show me how that is like counterfeiting.

You can hold $US, CAD, CHF, Euros, gold and silver there. There is no fractional reserve lending.

Wow, there is a place where I can deposit my money and earn no interest? How much do they charge?

381 posted on 06/26/2008 4:19:20 PM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
[ Post Reply | Private Reply | To 380 | View Replies]

To: A Strict Constructionist
A devalued dollar is not all bad. Unless your a tourist.

Or if you buy anything from overseas... ( ummmm, that would include every TV set on the market - and just about everything else.

382 posted on 06/26/2008 4:23:21 PM PDT by GOPJ (Hypocrisy doesnÂ’t apply to liberals. (according to the MSM) FreeperProud2BeRight)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Toddsterpatriot
Wow, there is a place where I can deposit my money and earn no interest? How much do they charge?

Todd, I know you're smarter than that. Dig a little deeper. Do you think earning 3% on a savings account while inflation is over 10% is a good deal? It's a great deal for the bank, they get to pyramid loans off your deposit - you pay for it with higher inflation. How much gasoline/corn/healthcare/etc does your savings account buy now vs. 2 years ago?
383 posted on 06/26/2008 5:05:31 PM PDT by dollarbull
[ Post Reply | Private Reply | To 381 | View Replies]

To: dollarbull
Todd, I know you're smarter than that.

It's true, I'm too smart to pay someone to hold my money.

Do you think earning 3% on a savings account while inflation is over 10% is a good deal?

Better than paying 1% while inflation is over 10%.

It's a great deal for the bank, they get to pyramid loans off your deposit -

Pyramid? You mean lending out a portion of my deposit?

How much gasoline/corn/healthcare/etc does your savings account buy now vs. 2 years ago?

How is paying goldmoney.com to hold my money going to make my gasoline/corn/healthcare more affordable?

384 posted on 06/26/2008 5:14:35 PM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
[ Post Reply | Private Reply | To 383 | View Replies]

To: Toddsterpatriot
How is paying goldmoney.com to hold my money going to make my gasoline/corn/healthcare more affordable?

Things go in cycles - right now the "fiat money", "debt as money", "crap as money" (CDOs, etc) system is imploding. It did have a good run for a while there.

The last 5 years and probably the next 10 years it will be better to pay someone 1% to hold your gold backed currency, than to have a bank pay you X% interest while inflation is X+10%
385 posted on 06/26/2008 6:58:46 PM PDT by dollarbull
[ Post Reply | Private Reply | To 384 | View Replies]

To: dollarbull
The last 5 years and probably the next 10 years it will be better to pay someone 1% to hold your gold backed currency

You can do that today. Still don't see how that reduces inflation. And how long will you hold your breath for a gold backed currency?

386 posted on 06/26/2008 7:11:41 PM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
[ Post Reply | Private Reply | To 385 | View Replies]

To: Toddsterpatriot
And how long will you hold your breath for a gold backed currency?

didn't we just talk about this? goldmoney.com
387 posted on 06/26/2008 7:22:04 PM PDT by dollarbull
[ Post Reply | Private Reply | To 386 | View Replies]

To: Toddsterpatriot

Do you work at a bank?


388 posted on 06/26/2008 7:22:42 PM PDT by dollarbull
[ Post Reply | Private Reply | To 386 | View Replies]

To: dollarbull

They sell gold backed dollars? Gold backed Euros? Gold backed Yen?


389 posted on 06/26/2008 7:32:52 PM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
[ Post Reply | Private Reply | To 387 | View Replies]

To: dollarbull

No. Do you?


390 posted on 06/26/2008 7:33:45 PM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
[ Post Reply | Private Reply | To 388 | View Replies]

To: Toddsterpatriot

I’ll have to admit I didn’t think the financials would fall this far this fast. While I think they are still not at the bottom, there will be a counter trend rally I’m thinking about trading.

Where you do see the bottom for WFC, BAC, C


391 posted on 07/01/2008 9:42:32 AM PDT by dollarbull
[ Post Reply | Private Reply | To 390 | View Replies]

To: dollarbull
Where you do see the bottom for WFC, BAC, C

Not sure.

I'd like to talk more about your recommendation to pay goldmoney.com to hold your $US, CAD, CHF, Euros, gold and silver. How much did you pay them in the last 12 months?

392 posted on 07/01/2008 6:43:11 PM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
[ Post Reply | Private Reply | To 391 | View Replies]

To: Toddsterpatriot
I'd like to talk more about your recommendation to pay goldmoney.com to hold your $US, CAD, CHF, Euros, gold and silver.

Full fee schedule is at www.goldmoney.com. But you knew that already.
393 posted on 07/02/2008 10:19:16 PM PDT by dollarbull
[ Post Reply | Private Reply | To 392 | View Replies]

To: dollarbull
Sounds great. How much did you pay them in the last 12 months?
394 posted on 07/03/2008 7:57:32 AM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
[ Post Reply | Private Reply | To 393 | View Replies]

To: Toddsterpatriot
What is your alternative to fractional reserve banking? Please spell it out.

Are you getting the picture now? IMB, FNM, FRE = bankrupt. WB, WM, C, MER, MS, BAC, etc = decimated

Fractional reserve banking sets up a exponential system that contains the seeds of its own destruction. We have passed the debt "event horizon".

Fiat money is fast losing its remaining credibility. Houses are being priced in gold terms in Vietnam. This cycle is over. Hard assets only for the next 10-15 years.
395 posted on 07/09/2008 1:07:51 PM PDT by dollarbull
[ Post Reply | Private Reply | To 377 | View Replies]

To: dollarbull; Fan of Fiat
Fiat money is fast losing its remaining credibility.

Can you still use fiat money to buy gold?

Houses are being priced in gold terms in Vietnam.

You're taking your economic cues from Vietnam? Wow!

I think you should pay goldmoney.com to hold all your PMs and currency. That's less money to be lent out and more demand for my cash. The interest I earn should rise.

396 posted on 07/09/2008 8:14:09 PM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
[ Post Reply | Private Reply | To 395 | View Replies]

To: Toddsterpatriot

Are you replying just to have the last word? You’re not saying anything of substance. The banking sector is melting down because fractional reserve lending is a failed system - you’re rearranging deck chairs on the titanic.


397 posted on 07/09/2008 8:21:02 PM PDT by dollarbull
[ Post Reply | Private Reply | To 396 | View Replies]

To: dollarbull
You’re not saying anything of substance.

Your recommendation of 100% reserves was something of substance?

398 posted on 07/09/2008 8:22:41 PM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
[ Post Reply | Private Reply | To 397 | View Replies]

To: Toddsterpatriot
Your recommendation of 100% reserves was something of substance?

The market has spoken on that. Check any financial stock. Then check any hard asset stock.

Are you going to go down with the ship?
399 posted on 07/09/2008 8:28:38 PM PDT by dollarbull
[ Post Reply | Private Reply | To 398 | View Replies]

To: dollarbull
The market has spoken on that.

People are pulling cash out of interest paying accounts and putting it into accounts where they are charged interest for the privilege? Link?

Then check any hard asset stock.

What do my hard asset stocks have to do with the return of 100% reserve banking?

Are you going to go down with the ship?

If you mean am I going to continue to hold funds in interest bearing accounts, the answer is yes.

400 posted on 07/09/2008 8:33:39 PM PDT by Toddsterpatriot (Why are doom and gloomers, union members and liberals so bad at math?)
[ Post Reply | Private Reply | To 399 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-20 ... 341-360361-380381-400401-410 next last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson