Yayyyyy, US dollar!

[IHateMyJob2004]

The euro edged up further against the U.S. dollar Monday, reaching a new high of $1.2985 in a rally fueled by concerns over high oil prices and the U.S. trade and budget deficits.

Euro Edges Up Further Against Dollar

EDIT: I removed my personal thoughts on why this has happeend.

 

[XZeroII]

Just what impact do you think a weak dollar has on our economy? Obviously you think a weak dollar is the worst thing that could possibly happen. Could you explain to me why this is.

 

[IHateMyJob2004]

Originally posted by: XZeroII
Just what impact do you think a weak dollar has on our economy? Obviously you think a weak dollar is the worst thing that could possibly happen. Could you explain to me why this is.

Anything bought overseas (imported) costs more. Cars, steel, clothes, etc. Basically, the cost of living will go up.

 

[charrison]

Originally posted by: IHateMyJob2004

Originally posted by: XZeroII
Just what impact do you think a weak dollar has on our economy? Obviously you think a weak dollar is the worst thing that could possibly happen. Could you explain to me why this is.

Anything bought overseas (imported) costs more. Cars, steel, clothes, etc. Basically, the cost of living will go up.

You mean to say the cost of living on imported goods goes up.

 

[IHateMyJob2004]

Originally posted by: charrison

Originally posted by: IHateMyJob2004

Originally posted by: XZeroII
Just what impact do you think a weak dollar has on our economy? Obviously you think a weak dollar is the worst thing that could possibly happen. Could you explain to me why this is.

Anything bought overseas (imported) costs more. Cars, steel, clothes, etc. Basically, the cost of living will go up.

You mean to say the cost of living on imported goods goes up.

Anything made out of steal will go up since a majority of steal is imported. So, while it's the cost of imports that go up, it's impact is fealt through out. Inflation ensues....

 

[XZeroII]

Originally posted by: IHateMyJob2004

Originally posted by: charrison

Originally posted by: IHateMyJob2004

Originally posted by: XZeroII
Just what impact do you think a weak dollar has on our economy? Obviously you think a weak dollar is the worst thing that could possibly happen. Could you explain to me why this is.

Anything bought overseas (imported) costs more. Cars, steel, clothes, etc. Basically, the cost of living will go up.

You mean to say the cost of living on imported goods goes up.

Anything made out of steal will go up since a majority of steal is imported. So, while it's the cost of imports that go up, it's impact is fealt through out. Inflation ensues....

So just because there is one bad part about a falling dollar, a falling dollar is a bad thing.

Ok.


So because the sun causes sunburn, we would be better off without the sun. Right?

 

[r0tt3n1]

It is widely assumed that the Fed will raise interest rates 1/4% to hedge against inflation. Thus negating some of the current drop in the dollars value.

 

[KB]

The falling dollar can also have a benefit. Because American goods become cheaper, other nations buy them, thus more demand for American goods, which can lead to jobs. But in the short run a falling currency is alway bad. Particularly since America doesn't manufacture much anymore.

 

[dmcowen674]

Originally posted by: KB
The falling dollar can also have a benefit. Because American goods become cheaper, other nations buy them, thus more demand for American goods, which can lead to jobs. But in the short run a falling currency is alway bad. Particularly since America doesn't manufacture much anymore.

Particularly since America doesn't manufacture much anymore

Hmmmm, the FLL's have been saying that is a good thing, they've also been saying it's a good thing all the jobs have gone overseas too.

We will see how good.

 

[Pliablemoose]

100% of retirement funds swept into an international stock index fund this morning, check...

 

[Spencer278]

Originally posted by: IHateMyJob2004

Originally posted by: XZeroII
Just what impact do you think a weak dollar has on our economy? Obviously you think a weak dollar is the worst thing that could possibly happen. Could you explain to me why this is.

Anything bought overseas (imported) costs more. Cars, steel, clothes, etc. Basically, the cost of living will go up.

Don't forget oil. Anything that uses oil. Anything that could have been made using oil. IE electricity natrual gas, plastics, and basicly everything that get moved by truck.

 

[IHateMyJob2004]

Originally posted by: XZeroII

Originally posted by: IHateMyJob2004

Originally posted by: charrison

Originally posted by: IHateMyJob2004

Originally posted by: XZeroII
Just what impact do you think a weak dollar has on our economy? Obviously you think a weak dollar is the worst thing that could possibly happen. Could you explain to me why this is.

Anything bought overseas (imported) costs more. Cars, steel, clothes, etc. Basically, the cost of living will go up.

You mean to say the cost of living on imported goods goes up.

Anything made out of steal will go up since a majority of steal is imported. So, while it's the cost of imports that go up, it's impact is fealt through out. Inflation ensues....

So just because there is one bad part about a falling dollar, a falling dollar is a bad thing.

Ok.


So because the sun causes sunburn, we would be better off without the sun. Right?

Narrow minded one,

Steel is just one example.

 

[IHateMyJob2004]

Originally posted by: KB
The falling dollar can also have a benefit. Because American goods become cheaper, other nations buy them, thus more demand for American goods, which can lead to jobs. But in the short run a falling currency is alway bad. Particularly since America doesn't manufacture much anymore.

Tiss true. And I have the same fears of the backward thought process. Maybe increased export prices will force teh US into manufacturing again? Would be nice if hte gov't would just say this is the plan though.

At this point, it seems like the US just plans to manage the wealth of foreign countries. This is what I see our major export being in the future unless things change.

 

[assemblage]

The weak dollar makes foreign goods more expensive for U.S. consumers and U.S. goods cheaper for foreign consumers, therefore more U.S. goods will be exported. As more sales are made overseas in stronger foreign currencies, they generate higher revenues when converted back into U.S. dollars. In turn these higher revenues increase profits. It's difficult to have a strong US dollar and a trade defeceit that favors US exports.

 

[conjur]

Dollar expected to fall amid China's rumoured selling
http://news.ft.com/cms/s/25797...a595-00000e2511c8.html

The dollar could slide still further, in spite of hitting an all-time low against the euro last week in the wake of George W. Bush's re-election, currency traders have said.

The dollar sell-off has resumed amid fears among traders that Mr Bush's victory will bring four more years of widening US budget and current account deficits, heightened geopolitical risks and a policy of "benign neglect" of the dollar.

Many currency traders were taken aback on Friday when the greenback fell in spite of bullish data showing the US economy created 337,000 jobs in October.

"If this can't cause the dollar to strengthen you have to tell me what will. This is a big green light to sell the dollar," said David Bloom, currency analyst at HSBC, as the greenback fell to a nine-year low in trade-weighted terms.

The dollar's fall comes as the Federal Reserve is widely expected to raise US interest rates by a quarter point to 2 per cent when it meets on Wednesday and to signal that it will continue with a measured pace of rate increases.

Speculative traders in Chicago last week racked up the highest number of long-euro, short-dollar contracts on record. Options traders have reported brisk business in euro calls - contracts to buy the euro at a pre-determined rate.

However, the market has been rife with rumours that the latest wave of selling has been led by foreign governments seeking to cut their exposure to US assets.

India and Russia have reportedly been selling US assets, as well as petrodollar-rich Middle Eastern investors.

China, which has $515bn of reserves, was also said to be selling dollars and buying Asian currencies in readiness to switch the renminbi's dollar peg to a basket arrangement, something Chinese officials have increasingly hinted at. Any re-allocation could push the dollar sharply lower and Treasury yields markedly higher.

We're going to need sustained job growth and an increase in exports to help combat this dive.

 

[irwincur]

Seems only a few people get it. In general a weak dollar is a good thing, especially for job growth and exports. Even better is that America still makes a hell of a lot of manufactured goods. To think we don't is wrong, completely wrong. I am sure that America is still far ahead of anyone else in the world when it comes to manufacturing.

If anyone should be worried it would be Europe. With the Euro at a high and the dollar at a low, exports are going to be very difficult for them. Coming off nearly a decade of recession, with slight imrpovements this could sting. It sure as hell won't help the 15% + unemployment rates in Euro/Socialist/Commie land. And people bitch here when they are at 5.4%, give me a break. If this was a major issue for the US economy and not seen as benefitial you would see Greenspan working a bit harder.

 

[assemblage]

Originally posted by: dmcowen674

Originally posted by: KB
Particularly since America doesn't manufacture much anymore

Originally posted by: irwincur
Even better is that America still makes a hell of a lot of manufactured goods.

I think irwincurl is correct.

 

[Steeplerot]

Go look downtown of your local city and how many factories do you see? I mean actual open ones not decaying for 40 years.
What do you see those old building renovated into starbucks? Cuz thats about it for manufacturing much besides war material.
We export lots of guns and import lots of drugs and oil. great economy! Republicans good luck with four years (If w doesent get the boot for cheating.)

 

[LordMagnusKain]

Originally posted by: IHateMyJob2004

Originally posted by: XZeroII
Just what impact do you think a weak dollar has on our economy? Obviously you think a weak dollar is the worst thing that could possibly happen. Could you explain to me why this is.

Anything bought overseas (imported) costs more. Cars, steel, clothes, etc. Basically, the cost of living will go up.

but then we buy more from the US, more Americans work, and we sell more to foreigners.

now:

In general a weak dollar is a good thing

that's false.

Fact is that a falling dollar, just like a strengthening dollar, tends to balance itself out over time.

V$=> ^ exports => ^ employment => ^ domestic demand => ^ employment
until you run out of land, labor, or capital by which to increase production, then:
^ employment => ^ inflation => V domestic demand => V employment => V$

and such is a simplified market cycle.

Go look downtown of your local city and how many factories do you see? I mean actual open ones not decaying for 40 years.

look at your monthly budget, you'll see why you don't have a polluting low-paying factory in your city anymore.

 

[Infohawk]

Originally posted by: Pliablemoose
100% of retirement funds swept into an international stock index fund this morning, check...

LOL.

 

[dahunan]

Where will WAGES go as our Dollar loses value?

BTW,

this thread is a repost
http://forums.anandtech.com/me...2&threadid=1436576

 

[Jmman]

Uh, the administration has been tacitly following a weak dollar policy for the last 4 years. Weaker dollar makes American goods more affordable in the rest of the world. This is simply another method to ensure that the economy does not go into recession. Hardly a reason to panic...........

 

[Pliablemoose]

Originally posted by: Infohawk

Originally posted by: Pliablemoose
100% of retirement funds swept into an international stock index fund this morning, check...

LOL.

I'm not kidding, we're headed into a recession, Kerry couldn't have headed it off either....

Swept my wife's $ into an overseas index fund too.

International index fund return was 38% in 03, 19% in 04'.

 

[FuzzyBee]

Originally posted by: Jmman
Uh, the administration has been tacitly following a weak dollar policy for the last 4 years. Weaker dollar makes American goods more affordable in the rest of the world. This is simply another method to ensure that the economy does not go into recession. Hardly a reason to panic...........

But... but... but we should be able to buy cheaper goods from overseas *and* create more jobs here!

 

[dahunan]

If this is helping then why does the Govt. need to keep borrowing more money to stay afloat and keep raising their debt limit?