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So does this mean that Europe is winning the struggle for economic supremacy?
With the US economy looking like it's going to nose-dive, is it the time where Europe provides the stable spring board for the new economies of China and India to move into pole position?
The AUD is also at a 23 year high.
Still not as good as the Euro though, and with the probable change in governemnt in a few weeks, our economy could take a downturn.
Im of the opinion the australian economy is about to die.
But as for the Chinese economy, it needs to stabalise before it can be revolutionary IMO.
Since when is a cheap dollar good for us?
i now currency being worth little makes exports more likely and gives you a nice exchange rate for going on holiday ect. but what are the downsides ?
Inflation, but america can just lower the whatsitcalled, can basicly keep printing them. And if it falls, so do we.Quote:
Originally Posted by LittleGrizzly
When oil is $90+/barrelQuote:
Originally Posted by Fragony
CBR
The :canada: dollar is worth $1.07 US.
I think I'm going to buy Vermont. :sunny:
It actually gives you a very bad exchange rate for going on holidays.Quote:
Originally Posted by LittleGrizzly
1 US Dollar = 0.68910 Euro
1 Euro (EUR) = 1.45117 US Dollar (USD)
That's the current exchange rate from here, as you can see, you will get only 0.68 Euros for one Dollar. Considering that what costs 200$ in the US, costs 200€ here very often, sometimes even more, you end up with little money on a trip to Europe.
but if im already in europe i'd have a lovely handful of dollars :beam: my friends going outto us soon as well lucky bastQuote:
Originally Posted by Husar
The reason the dollar is so low is that very few investors will touch it with a bargepole. The US economy is about to go tits-up for a long recession. The general opinion is that there will be a world slow-down, but perhaps Europe will have a slower and softer down-turn.
Keeping it low has always been a concious strategy, mercentalism thingy.
That's a dangerous game to play. You can either have small natural corrections over time or something large breaks... interference with supply and demand (which the value of the dollar is about) tends to result in the second version.
The US dollar will be truly in unstable ground when oil contracts are signed off in the Euro...
That'll be the shift that shows the US century is truely at an end - when oil is quoted in Euros rather than dollars.
Yeah it is but we have all the reason to nurse it, China owns how much? 800 billion dollar? Netherlands about 300 billion, same with England Germany and France we can't allow it to fall. No fun for the american common man who will feel it in his wallet but America being the economic playground it is.. It would be bad but it isn't going to happen.
No, Europe is heading towards a nose-dive too, but perhaps scheduled a bit later than the American one. China is going to win the struggle, as long as both America and Europe remain so self-destructive by allowing extreme growth of corruption and expenses at a time when income is expected to decrease by some percent.Quote:
Originally Posted by Idaho
LoL!Quote:
Originally Posted by Idaho
CR
Being British is always cool - cheap crap can be ordered from America. It also means if you buy games over Steam like i do, you make big savings.
Orange Box (physical copy) - £35
Orange Box (over steam) - £25
Gee Idaho, you really do have a big blindspot, where supposed bad news for the US is concerned. Why would the Federal Reserve pour gas on the fire, lowering interest rates, if a weaker dollar was truly hurting the US economy right now?
What's the US's biggest economic concern right now? Oh, I don't know, a huge, massive trade imbalance with China? Oil imports? OPEC trades oil in dollars. China pegs the Yuan to the dollar so that they never feel the impact of their trade surplus. How do we slow down both drags on our economy? Discourage exporters from shipping goods to your country. How do we do that? Allow our currency value to fall.
This comes up every 10 or 12 years or so. The last time the U.S was going 'tits up' as Idaho says, and all you little Euros were smugly breaking out victory champagne was 1993, and we were doing it to discourage Japanese real estate speculation. Now granted, it was a bit painful for us... but how's that Japanese real estate speculation going? How is the Japanese banking industry in general, for that matter? :skull:
Don, Don....Quote:
Originally Posted by Don Corleone
Stop trying to use logic. LOGIC IS BAD.
Remember, when one country's currency is worth more than then another's, it is a direct correlation to economic growth.
That's probably why the pound has always been worth more than the dollar. Great Britain has always had a superior economy.
Can you atleast try to make up these accusations with facts?
I'm going to admit, I'm not entirely sure what the full effects of a weak dollar will be, but exchange rates are a very complex thing and trying to simplify them like this is ridiculous.
I can tell you one thing for sure. Traveling to Europe right now if you are an American, blows. Save your money and travel domestically.
Where is all this hate coming from Don?Quote:
Originally Posted by Don Corleone
I don't think anyone has been firing potshots at the U.S.A, this wont end up being another case of anti-americanism will it?
From my knowledge, Idaho has a past history of being blatantly Anti-American.Quote:
Originally Posted by Bopa the Magyar
Again, just from my personal knowledge.
Hmm, dunno, Idaho is one of my favourite iconoclasts, (mwah, we prefer to call it free thinking rather than anti american) but I think Don called this one about right. Cheap dollar doesn't equate to economic victory for the Eurozone in any way that I understand. The "downside" is not being able to sell anything to America. Its another form of protectionism, really.Quote:
Originally Posted by Bopa the Magyar
Case in point.Quote:
Traveling to Europe right now if you are an American, blows. Save your money and travel domestically.
YEAH!!!!Quote:
Originally Posted by Beirut
Canada always gets forgotten, which is odd considering it's the best country.
Meh, oil prices are in $$, so good news for us. And I have already planned a holiday in America next September, so that's more good news.
It is bad news for European exports. But nothing special. As for any doom scenarios: maybe.
Let's hope the devaluation really stimulates the American economy. If not, than the lowered interest rates will only fuel inflation and further weaken the dollar. And confidence in the dollar. Combine that with the troubles in the housing and credit market, and there will be a problem. Which is bad news for Europe, any recession will hit as hard here as across the Atlantic.
As to the real gloom and doom scenario's (Iraq, debt, deficit spending, Dollar collapse, skyrocketing oil prices): well, I, for one, welcome our new Chinese overlords.
Quote:
Originally Posted by Bopa the Magyar
First, I didn't say anything that stated or implied I hated anyone. I like Idaho. He makes good points, which is more than I can say for some people. Just because I disagree with him vehemently at times doesn't mean that I dislike him. I bet he'd be a great guy to have a pint or 2 with and get red-faced with in real life.
Second, what I said, if you'll read, is that Idaho was giddy about the US taking a downturn, an area for which he has a blindspot. As proof of my statement, I offer the following:
As I read it, the US will tumble into 3rd world nationhood in Idaho's eyes, leaving Europe, China and India to dominate the world economic sphere. (Btw, Idaho, where does Japan lie in your fantasy? Buried with us?)Quote:
Originally Posted by Idaho in post 1
Translation: The most highly valued security exchanges in the world are being shunned, as are investments being traded there. In truth, it is the U.S.'s overindulge in treasury securities that's driving the dollar down, not a mass exodus from our financial markets.Quote:
Originally Posted by Idaho in post 13
Now, Bopa, I conclude with simple question. Can you explain to us where in my post, this one or the first, that you see the hatred you accuse me of?
It is, but not against you guys. I think its an attempt to force China to stop tying their currency to ours, to allow us a chance to balance out our trade deficit. I'm not sure how it will work out. With Japan, you had a large base of domestic (in Japan) investors, that were demanding exporters bring their profits home. With China, I don't think there will be the same push. They can ride out the devaluation as long as we can, possibly longer.Quote:
Originally Posted by English assassin
On the plus side, I'm actually really happy to see it. If this doesn't cure the average American's addiction to credit cards, nothing will. We should finally start to see a shift up in domestic savings. Let the industry and government spending carry the economy for a while. God knows, the consumer economy has been the gas in our engine for too long. We need to pay down personal debt for a while.
-Any country that doesn't similarly devalue their currency will see their exports rise in cost in American markets. What's more, foriegn exporters will see their profits shrink when they try to convert the devalued dollars back to their higher currency.Quote:
Originally Posted by Ice
-Credit markets will begin to tighten here at home, which should lead to a slowdown in domestic consumer spending as a whole, but also a decrease in personally held debt (some good, some bad).
-The US will find it somewhat harder to meet foreign obligations (not just interest payments, but things like leases on real estate, etcetera).
But the desired affect, a shift in the trade defecit with China.... I'm not so sure that will happen. China makes things we want... trinkets made cheaply. Our domestic manufacturing base is more geared towards high value products, something that Chinese consumers just aren't demanding. Besides, we're not going to out-protectionist the Chinese. You're not allowed to actually sell things to them directly. You have to set up a hybrid company with a domestic company, and the domestic Chinese company has to have a 51% or more stake. That's where companies like Putien & TD-Tech come from. Motorola and Ericsson and Nokia aren't allowed to sell into China directly.
It will give rise to the Ugly European tourist traveling to the US. :laugh4:
Never as bad as the Aussie tourists though. :embarassed:
I thought that Europeans (and Aussies) were afraid to travel to the US, because of all the shootings in our streets. :laugh4:Quote:
Originally Posted by Papewaio
For comparison purposes..
Country GDP/ Real Growth Rate/ Per Capita
European Union 11,650/ 2.4/ 26,900
China 7,262/ 9.1/ 5,600
United States 11,750/ 4.4/ 40,100
France 1,737/ 2.1/ 28,700
Germany 2,362/ 1.7/ 28,700
United Kingdom 1,782/ 3.2/ 29,600
Zimbabwe 24/ (-)8.2/ 1,900
Tuvalu 0.01/ 3/ 1,100
http://education.yahoo.com/reference...re/gdp/1a.html
I honestly don't know what to think about the falling value of the dollar.. which doesn't say much for my business classes.
What Don said seems to make sense though. The Fed is certainly not comprised of idiots.
With fairly equal GDPs and economic growth rates of 4.4 to 2.4, Im not sure how the Euro is winning the battle for economic supremacy.