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Record Low US Dollar Concerns  
User currently offlineWardialer From United States of America, joined Sep 2001, 1183 posts, RR: 0
Posted (6 years 9 months 1 week 4 days 8 hours ago) and read 1529 times:

Hi folks,

Just a question to you guys here.

How many of you will think that the US Dollar will equal $2.0000 mark??? WIll it even go higher than that like let say...2.5555 ?

Is there a set limit on how low the Dollar would get????

[Edited 2008-03-13 22:19:32]

[Edited 2008-03-13 22:20:38]

11 replies: All unread, jump to last
 
User currently offlineArniePie From Belgium, joined Aug 2005, 1265 posts, RR: 1
Reply 1, posted (6 years 9 months 1 week 4 days 3 hours ago) and read 1487 times:



Quoting Wardialer (Thread starter):
US Dollar will equal $2.0000 mark

1$ equalling 2$ , don't think that will ever happen except for in a casino.

1€ equalling 2$, might be possible but that won't be good for the both of us I think.



[edit post]
User currently offlineCasInterest From United States of America, joined Feb 2005, 4789 posts, RR: 3
Reply 2, posted (6 years 9 months 1 week 4 days ago) and read 1460 times:

If the US $ tests the 2 Euro level, then there will be some VIOLENT swings in the economy between Europe and the US.

Airbus, VW, Alacatel-Lucent, Dahmler, and others will be forced to open more factories in the US instead of Europe. Goods and services will be cheaper in the US, and consequently, there will be a heavy swing back into the dollar.

I am an advocate of a strong dollar, but a weaker dollar may be the best thing to pull the US out of a recession.

the danger of course is inflation, hopefully the fed will get it right soon.



Older than I just was ,and younger than I will soo be.
User currently offlineWardialer From United States of America, joined Sep 2001, 1183 posts, RR: 0
Reply 3, posted (6 years 9 months 1 week 4 days ago) and read 1456 times:

Is there a limit on how low the dollar can actually fall to? Or can it just keep falling and falling???

User currently offlineCpd From Australia, joined Jun 2008, 4881 posts, RR: 37
Reply 4, posted (6 years 9 months 1 week 4 days ago) and read 1453 times:

It won't go into freefall because the USA just isn't like that.

It will drop down a bit and then plateau out and eventually start to pick up once the credit crisis starts to go away.

But in the mean time, this is fantastic news for me - I can buy camera gear really cheap from the USA! Big grin


User currently offlineSacamojus From United States of America, joined Dec 2006, 228 posts, RR: 1
Reply 5, posted (6 years 9 months 1 week 3 days 23 hours ago) and read 1432 times:

Technically the dollar can fall to zero because we have a floating currency I believe. The low US dollar is a good thing for U.S. exports however but bad for our imports. Don't worry, the dollar will appreciate once we get some more foreign investment.

User currently offlineAg92 From India, joined Jul 2006, 1317 posts, RR: 0
Reply 6, posted (6 years 9 months 1 week 3 days 23 hours ago) and read 1416 times:

To be honest I really don't care about the US economy because it has no effect on me and plus I don't know how this works, except things from America are getting cheaper for people here in Singapore!

User currently offlineAirTranTUS From , joined Dec 1969, posts, RR:
Reply 7, posted (6 years 9 months 1 week 3 days 23 hours ago) and read 1406 times:

Every prediction I see has the dollar gaining strength by this summer. I hope they are right.

User currently offlineCasInterest From United States of America, joined Feb 2005, 4789 posts, RR: 3
Reply 8, posted (6 years 9 months 1 week 3 days 23 hours ago) and read 1406 times:



Quoting Ag92 (Reply 6):
To be honest I really don't care about the US economy because it has no effect on me and plus I don't know how this works, except things from America are getting cheaper for people here in Singapore!

How can you say, no effect, and cheaper for me in the same sentence?



Oh well some people don't get it.

that's how Economics work. Supply Demand, Opportunity Cost....

The US still has one of the most powerful economies in the world. The fall of the dollar at such an accelerated rate is going to come back and whiplash a lot of manufacturer's in other countries within five years when the US comes flying out of the recession.



Older than I just was ,and younger than I will soo be.
User currently offlineBaroque From Australia, joined Apr 2006, 15380 posts, RR: 59
Reply 9, posted (6 years 9 months 1 week 3 days 22 hours ago) and read 1381 times:

To put a bit of perspective into the matter, the devaluation of the pound stg from $4.03 = 1 pound on 19 September 1949 to $2.80 = 1 pound (-30.5%) did not exactly turn the UK economy around.

OK, the US economy might be in a better condition now than the UK one was around 1950, but then again one major problem the UK had at that time was debt from WWII and the US currently does have a major debt problem. So perhaps the analogy is not so irrelevant.

Inflation in the US will rise quite markedly. That will start to raise US cost structures, partly negating the benefits from the devaluation. By contrast, there will be some downward pressure on inflation in the Euro zone.

If/when the will the US dollar rise? If the fall is due to debt, that is not going to go away any time soon. Just as the UKs debt did not disappear magically when Churchill won the next election in the UK. So an instant recovery might not be a given.


User currently offlineL-188 From United States of America, joined Jul 1999, 29832 posts, RR: 58
Reply 10, posted (6 years 9 months 1 week 3 days 10 hours ago) and read 1307 times:



Quoting Baroque (Reply 9):
To put a bit of perspective into the matter, the devaluation of the pound stg from $4.03 = 1 pound on 19 September 1949 to $2.80 = 1 pound (-30.5%) did not exactly turn the UK economy around.

It didn't help that the brits where nationalizing everything under the sun during that period.

They never really recovered until Thatcher.

But I do agree with you that there is a comparison there.

But it should also be realized that most economics is just a study of perception, and several different perceptions are effecting the economy, fuel prices, the debt, the housing bubble, the oil bubble.



OBAMA-WORST PRESIDENT EVER....Even SKOORB would be better.
User currently offlineBaroque From Australia, joined Apr 2006, 15380 posts, RR: 59
Reply 11, posted (6 years 9 months 1 week 3 days 1 hour ago) and read 1267 times:



Quoting L-188 (Reply 10):
They never really recovered until Thatcher.

Nothing to do with Thatcher and everything to do with living off N Sea Gas and exporting a large proportion of N Sea oil at giveaway prices.

How much will it cost the UK now to import what they previously exported? She also sold off British Gas which was fast getting a reputation for having the best oil discovery rate in the UK, and it took a bit to beat BP at that stage.


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