The dollar hits a new low against the Euro :(

Here is the link:

http://news.bbc.co.uk/2/hi/business/6992570.stm

I don't see any sign of the dollar gaining value anytime soon. Anyone have some links with a better outlook on the US dollar?

 

And this affects you how? Weak dollar helps us exports to europe. And brings tourism here as well.

 

It effects me because I travel to Europe many times a year. So the weak dollar hurts me when I convert to Euros.

Are you for a weak dollar? Do you think it is weak enough or would you like it to get weaker? If so, how weak?

 

I just sold an old domain at SEDO. The guy bought it for 65 Euros instead of 60 USD. I was rapped about that!!

Col

 

The U.S. economy is about to enter a serious recession, and there is no telling how far it will fall. Actually, it will probably completely be wiped out, destroying the U.S. economy in the process. I hope this doesn't happen, but there is some evidence which show it is likely.

 

I see a recession happening in the future but as far as the US Economy being wiped out, I don't think there is anyway that can happen. Too many nation's economies are dependant on their trade relations with the US. A recession? probably. Total colapse, I don't think so.

 

Oil imports and Americans running the roads with SUVs are killing the dollar

Oil imports average 9,983 million barrels per day @ $80 per barrel

Ethanol production is depleting wheat stocks worldwide and grain prices are soaring. World grain stockpiles are at their lowest level in 33 yearsdown to 48 days of consumption.

The grain required to fill a 25-gallon SUV gas tank with ethanol will feed one person for a year. The grain to fill the tank every two weeks over a year will feed 26 people.

 

It's funny what happens when they destroy a country's manufacturing base and make no effort for a sane energy policy.

 

So your concern is more selfish than the actual interest of the economy. That's quite interesting.

I'm not sure. I know that I don't base my opinion of the economy on my exchange rate when I go traveling though

 

This is another important thing that a lot of Americans don't think about. When you have a country which allows its manufacturing base to be sent overseas, and you have a weak currency, it spells big trouble.

Inflation is serious, and a lot of people don't understand it. Inflation is a tax which is worse than the income tax(which is pretty amazing, because the income tax is pretty bad). Inflation robs you of all your money because you have to pay higher prices for just about everything.

Those of you who downplay the fall of the dollar don't understand what happened in Argentina, Germany, or Yugoslavia. You think there can't be a banking collapse here, but I assure, it can, and is likely. Anyone studies the American banking system understands why this is happening.

I've had people on this forum like zman tell me that the economy is in great shape. How can our economy be in great shape when:

1. The housing market has popped, leaving millions of Americans without homes.
2. The Banks have reduced the amount of credit they lend out, forcing the fed to put billions into the market.
3. Many of our jobs have been outsourced.
4. The dollar is at a record low against the Euro, and continues to fall.
5. The U.S. has a near billion dollar trade deficit with the Chinese, and our government owes the Chinese money.

Yeah, anyone who thinks our economy is great is leaving in dreamland.

 

The subprime market bubble burst. People who get stupid adjustable rate mortgages and didn't refinance after their arms kicked in. Bad consumers combined with bad lendors. Happens now and again.

As a result of #1. People not being able to pay off their arms. (and legs *rimshot*!)

US gains more jobs than it loses through outsourcing. The jobs we gain are better than the ones we lose.

Irrelevant. As discussed yesterday.

For 50 years now.

 

You asked how it effects me and I told you one way that should have been simple enough for you to understand, but it went right over your head or you prefer to simply ignore the facts.

It seems you base your opinion of the economy on how weak the dollar is, the weaker the better in your mind, don't be too suprised but a lot of Americans actually prefer a strong dollar. Go figure

 

No, I base it on actual economic figures - economic growth, unemployment, inflation etal. You know, the kind of things that really matter to this economy.

No I totally understood what you meant. You are mad cuz it costs a little more to vacation in Europe. Which would mean you are mad at more US imports going to Europe as well, because that is a side effect of a "weak" dollar. Our imports to europe cost less for them to buy. Weak dollar also helps bring jobs over here as well. So there is a benefit to us and while it may tick off the europeans a little, I'm not going to cry about it.

 

Yeah, the value of the dollar doesn't matter to the economy. What was I thinking.

Are you sure, because you sound like it. Do you need a tissue?

 

The value of the dollar to the euro does not matter. Glad you've finally come to your senses. The more important numbers are the xchange rate with china and japan - where we get far more imports. If the dollar falls on those indexes (which it hasn't its been pretty steady), the cost of goods goes up here, which has a direct impact on our economy. Whereas, I believe we have a trade surplus with europe because of the lower dollar - making our goods cheaper for them, and hampering their ability to import here cuz it makes the cost prohibitive as opposed to american made products. It's not too difficult, really.

you're the one whining about your vacation price. Not I

 

What's even more interesting is that you asked him how it effects him and when he gave you valid ways of how it effects him you call him selfish for thinking about himself above his nations economy. Perhaps you should have asked him how it effects his economy if that is what you wanted to know.

Sorry, For a second there i was mistaking you for someone who is actually interested in a reasonable discussion.

 

The dollar is falling on the expectation that the Federal Reserve is going to cut interest rates which means the return on dollars is going to be smaller which effects demand for dollars. One could say that the dollar was over valued in the early 2000s which in part lead to the recession in 2001-02.

 

The last serious recession we had was in the Late 1970s early 80s. The last two recessions have been the mildest recessions in history in large part due to technology in which companies are better able to forecast demand and respond more quickly to it so they don't create excess capacity. In my opinion I don't see a recession coming. I see a slowing of the economy but with the global economy growing at 5% a year and with a weak dollar which is helping our exports and helping our manufacturing base I don't see it happening.

 

I would just like to add that one the subprime market made up a very small percentage of the overall mortgage market.

Two some of these people how got these loans should of never took out loans in the first place.

Three Banks are still loaning money to people with good credit and proof of their economy.

 

Yeah, they were stupid to get the mortgages, but guess what? Now we are all effected by it. Because millions of Americans now don't have houses, they will move into apartments, and the laws of economics means apartment prices will shoot through the roof, and this is exactly what has happened. Since I'm a renter, this hurts me to! Come to think of it, now is a great time to buy a house!

It is a domino effect. It starts with the subprime mortgage crisis, but it gradually causes other things to occur.

Since we owe money to the Chinese, they will gradually begin to dictate our foreign policy. How can America call itself a super power when we're in debt to another country?

Says who? Paul Craig Roberts, an economists who worked under the Reagan Administration, doesn't agree with you on this:http://www.vdare.com/roberts/061009_newface.htm Roberts says the exact opposite, that outsourcing is killing this nation.

You don't see a recession coming? Do you know that our paper currency isn't backed by gold or silver, and we have over $700 billion dollars in circulation? An apartment cost you $80 per month to rent in the 1960s, and today it costs over $800 to $1000 in major cities. You don't see a problem with this?

Do you understand the nature of inflation? I see a serious recession coming. Actually, I think we're headed towards another Great Depression. Our country is in so much debt it is not even funny. There is no way our economy can continue with paper money not being backed by gold, and the extension of credit.

My Grandmother told me that in the 60s $25 per week allowed her to pay her rent and keep food on the table. Today, you will starve and be homeless with this amount! Inflation is central problem. When you live in a society that is based on paper money and credit, you can only expect the price on everything to rise faster than your income, and eventually, the Middle Class will get wiped out.