The State of the US Dollar

by nvrgnbk 21 Replies latest jw friends

• 

  CyrusThePersian

  A short term, slightly weakened U.S. dollar could actually be good for the economy because U.S. made industrial goods will be cheaper in foreign markets (think American cars being cheaper in Germany than German cars) so you could see an upsurge in American industrial output.

  In the long term though, a weak dollar could scare off foreign investment, which American industry is dependent on. So I don't think the issue is so much a weak dollar as it is how long it remains weak and how weak it gets.

  CyrusThePersian
• 

  5go

  Welcome to the club Nvr, Be prepared to get the nutjob label soon.
• 

  wha happened?

  I haven't heard so much rush about buying gold since 2000. All this talk about how the dollar will eventually only be worth a dollar in this country similar to what occurs in a lot of third world countries. 2000 came and went with hardly a whimper. The dollar stood and no need to bargain with gold and precious gems. One thing that is very concerning is that foreign investment in US Treasuries in the past sustained easy loans and low rates for a long time. That's gone for now, and the rise in the stocks after the Fed announcement only caused rates on 1st trust deeds to Rise, not fall. I do look to Fannie Mae and Freddie mac to increase, (at least temporarily), the current limit of $417k. Especially for home owners/buyers in the large metropolitan cities such as NY, LA or SF. Sorry Mr Bush, Current FHA limit is $314k. Who in Los Angeles has a loan that low? How will FHA bail them out. On the other hand, a bailout of the speculators that took a chance on 100% financing 2-3 years ago only to find their investment went bust is absurd. If they get a bailout, I want a bailout on my speculation at the craps table. I've been ranting too long. I forgot what the topic was.
• 

  nvrgnbk

  Very insightful, CTP.

  I'm ready for it, 5go.

  LOL!
• 

  CyrusThePersian

  Even though it seems ironic to us poor yokels, haven't you noticed how U.S. industrial big shots seem to jump for joy at the prospect of a weak dollar? Not only are their goods cheaper and therefore easier to sell in foreign markets, but foreign goods are more expensive in U.S. markets-a win-win situation! (for them not for us, for us it means higher prices for foreign made stuff that's not made in the U.S., like computers and other electronics, clothing items and other goods.)

  The key is whether the fluctuation is long term or not.

  CyrusThePersian
• 

  stillajwexelder

  If the dollar drops 30% that means imports will be 30% more expensive and exports 30% cheaper. It can actually help the economy short term.
• 

  Warlock

  The weak dollar is just simple currency manipulation by the U.S. government.

  Warlock
• 

  worldtraveller

  Prooves my point that you cannot borrow your way to prosperity. Aren't Republicans supposed to know that?

  And for all those bankers that told me to invest in stocks. Well, I didn't and Canadian money has increased in value by 30 percent in a few years. Thanks, George.
• 

  Homerovah the Almighty

  Personally I think it's good that the Canadian dollar is on par with the US, are economies are so closely arranged that it makes sense for both countries to have their dollars to have the

  same value. The free trade situation with both countries for exports and imports will be allot easier now and should help both economies in that account.
• 

  Clam

  One unfortunate industry sector is jokes poking fun at the Canadian Dollar. The following is now redundant. . .

  Bob, a middle-aged Canadian tourist on his first visit to
  Orlando, Florida, finds the red light district and enters a
  large brothel. The madam asks him to be seated and sends over
  a young lady to entertain him.
  
  They sit and talk, frolic a little, giggle a bit, drink a bit,
  and she sits on his lap. He whispers in her ear and she gasps
  and runs away! Seeing this, the madam sends over a more
  experienced lady to entertain the gentleman.
  
  They sit and talk, frolic a little, giggle a bit, drink a bit,
  and she sits on his lap. He whispers in her ear, and she too
  screams, "No!" and walks quickly away.
  
  The madam is surprised that this ordinary looking man has asked
  for something so outrageous that her two girls will have nothing
  to do with him. She decides that only her most experienced lady,
  Lola, will do. Lola has never said no, and it’s not likely
  anything would surprise her. So the madam sends her over to Bob.
  They sit and talk, frolic a little, giggle a bit, drink a bit,
  and she sits on his lap. He whispers in her ear and she screams,
  "NO WAY, BUDDY!" and smacks him as hard as she can and leaves.
  
  Madam is by now absolutely intrigued, having seen nothing like
  this in all her years of operating a brothel. She hasn't done
  the bedroom work herself for a long time, but she's sure she
  has said yes to everything a man could possibly ask for. She
  just has to find out what this man wants that has made her
  girls so angry. Besides she sees a chance to teach her employees
  a lesson.
  
  So she goes over to Bob and says that she's the best in the
  house and is available. She sits and talks with him. They
  frolic, giggle, drink and then she sits in his lap.
  
  Bob leans forward and whispers in her ear, "Can I pay in
  Canadian currency?"