The dollar hits a new low against the Euro :(

...and why are you only citing the negative things? Sure, foreign goods cost more, but US goods are cheaper to foreigners. Therefore, the dollar is protected against extreme devaluation.
US firms may hesitate to invest overseas, but foreign investors will invest here due to the higher rask-free rate.

 

and that will good with foreigners owning all our companies

hey our dollar is almost the same as the Canadian dollar now!

 

The dollar tumbled to a new all-time low against the euro after today's Feds rate cut, because lower rates make the dollar less attractive to foreign investment. Crude oil futures also rose 94 cents to $81.51 a barrel, and gold prices rose to a multi-decade high.

 

It IS a currency devaluation. The dollar is being devalued against the Euro. Why do you make excuses for the decline of the dollar, instead of just accepting the fact that the dollar is declining, and the cost of goods will continue to rise? Americans are already in debt up to their eyeballs, how can rising prices due to inflation be a good thing?

U.S. goods are only cheaper to Europeans, not so much to the rest of the world. The individual American loses though, because they will have to struggle to pay for basic necessities that will only increase in price. The problem with U.S. goods is that because we've lost our manufacturing base due to outsourcing, we're not pushing the limits of innovations like we did in the past.

Nobel Prize Winner Joseph E. Stiglitz agrees with my point of view, and so does economists Paul Craig Roberts. There is nothing good about having a weak currency. Don't let anybody convince you it is. It is all a load of BS. When your currency goes down, your living standard goes down..........look at Latin American countries, or countries in Africa. Compare their currency to the U.S. dollar, Pound, Euro, or Yen, and then look at the difference in living standards...

 

Yeah, if you don't make anything it is hard to innovate. And you have to import what you need. Eventually people figure out they don't need you any more and you're out of luck.

It seems to me a strong currency, at least in part, reflects investors confidence in the government.

 

Here is a news update guys. The Fed just cut interest rates, and there is no doubt that the Chinese will be pissed. The London Telegraph, the most respected paper in Great Britain, has made it clear that the Chinese have threatened to dump their dollar reserves, which will lead to an economic collapse in America:http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml

Some members in this forum such as Mia have said that the Chinese are unlikely to do this, because it would hurt them if Americans suddenly "stopped buying Chinese goods."

LOL!!!!!!! Americans are so strapped for cash and in debt that they don't have much of a choice but to keep buying cheap Chinese goods from Walmart, so this doesn't scare the Chinese at all. Hell, they made it clear in the London Telegraph they they aren't afraid to remove the dollar out of their reserves, and China might even pressure the U.S. to allow them to invade Taiwan.........or else.

You have to give it to the Chinese, they are ruthless, cunning, and smart, and they are clearly using Sun Tzu's Art of War against the U.S. Win without fighting, thats the main treatise of the book, and that is exactly what they are doing.

 

Great, If they want porn, cheeseburgers or XXXL t-shirts. The limit of ameircan manufacturing these days.

 

ROFL!!!!!!!!!!!!!!!!!!!!!!!..................oh wait, that isn't really funny when you think about it.

 

It is true that we are primarily an importing country. However, thing may change if the USD does collapse.

 

The dollar took another fall on currency markets Thursday, reaching one-to-one parity against the Canadian dollar for the first time in 30 years and hitting a new low against the Euro.

Why are some many people in denial that the US dollar is in a devaluation.

 

Well, they are the same people in denial about a lot else besides.

I am amazed at how many people bought this whole "free-trade" mantra, when it was only an end-run around the social contract and left the US dependent on countries like China

 

The dollar has just fallen below the Canadian dollar.

Dubai is buying the NASDAQ stock exchange

When you have a weak currency you become a banana republic and export raw materials and cheap labor. Your standard of living decreases. Foreign countries buy your assets on the cheap.

 

no, its the special "weak dollar is good" economics

 

Examples?

Think about this... You owe the bank $10,000, they own you. You owe the bank $1,000,000, you own the bank...

Countries with our debt, need us, as much as we need them... When are some of you going to begin to realize that we live in a global economy... ?

 

Umm, What are you talking about? How can you own the bank when you owe them $1 million...........you're in debt, and debt is debt. Actually, the bank owns you either way. I know what you're thinking. You're thinking that because you owe $1 million, that must mean you have much more than this, since the bank wouldn't loan you this much any other way. The same can be said for the $10,000...the bank won't loan you $10,000 unless you have $30,000 or more. The reason for this is because if you should somehow become default, they can take your wealth to recovery their loss.

Here is the fatal flaw in your argument. If you should get into a bind, or file for bankruptcy, the bank will take everything you have, and you end up with nothing. It happens all the time. Millionaires go bankrupt, even Trump's business went bankrupt. The bank always has a contingency plan to deal with millionaires who run out of money.

You own the bank when you have $1 million, and you open your own bank or payday loan service, and you start loaning out money to other people. Then and only then do you "own the bank."

Debt is bad.......it even says it in the Bible, and I'm not Christian. I get so tired of hearing people talk about how borrowing money can make you rich, when common sense shows it can't. I mean, I was just reading a financial article on Yahoo yesterday, and they were advising people to get "a better credit card." Its stupid advice like this that keeps Americans broke and in debt.

America shouldn't be tied into other countries, America should be independent. This is why globalization sucks, because everyone is dependent on everyone else, and this is exactly what the globalists want, so they can bring in their one world government. Nationalism is what we need.......scew globalism.

I'm not against trading with other countries, but being too dependent on them is dangerous.

 

One more thing Mia. When you have money, the bank wants to loan you money, but when you don't have any money, and you're low income, the bank won't loan you anything. Do you know why?

Simple. Because when you have "real" wealth, the bank can loan you money with interest, and they get to securely make back the money that loaned you plus interest, so you end up paying more than you would have paid if you simply used your own wealth.

The bank essentially prints money out of thin air, loans it to you at a certain interest rate, and then extracts your "real" wealth through monthly principal and interest payments.

When I go into a bank, they offer me credit cards all the time.....and my answer is always the same...why should I borrow money from you, when I have my own? That always shuts them up.........

Anyone who borrows money to start a business is an idiot, because they play the bank's game. The bank is smart enough to know that 80% of all businesses fail in the first five years, but they loan out money to start businesses anyway, because whether your business succeeds or fails, you owe them the money plus interest. If your business fails, you officially become an economic slave to the bank. Is it not smarter to use your own money, or pool your money with a group of other investors?

 

Or they just repackage the debt and sell it on to the highest bidder. Countries could theoretically end up being in hock to just about anyone.

Claiming that being hugely in debt to someone is a good position to be in just shows a lack of understanding of basic economics.

 

But of course, a country that dumps foreign government securities at once would be guilty of currency manipulation.

 

Wow Tesla, I had seen your responses to people like Mia about them being crazy before, but had never seen her posts until now. Mia, you have NO idea what you are talking about. I'm amazed that someone who runs their own ISP and can justify charging $50/hr thinks being in debt is good business. I weep for your customers.

 

Mia gets the dumbest post of the week award for that one.......that borrowing money and being in debt, is the key to becoming financial independent............yeah, and I'm Barnie the Purple Dinosaur.

ROFL.......wow, that really cracked me up. I'm about to sign off and go buy some groceries, but I'll check back into DP later. You know I've read quite a few books on finance, and in none of them did I ever read the advice that Mia just gave.......