AA787823
Topic Author
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The Weak US Dollar

Sun Jul 15, 2007 8:16 am

Why does every one get so upset about a weak US Dollar. The weak USD is actually better for our economy than a strong one because it makes our good cheaper overseas, which leads to more exports of domestic goods and more US jobs! The weak US Dollar makes the US more attractive as a destination to foreign visitors, which means more $$$ comming into the USA. I personally hope the USD drops another 20-30% against the world currencies which would really be great for our economy. GWB is a genious with our economy, the stock market is at an all time high, intersest rates are low, inflation is in check, and the deficit is under control (as long as we can make the monthly payments who cares how much debt we have???)

Lets go!
FOUR MORE YEARS!
F.U.R.P.....Families Under Reduced Pay
 
TUNisia
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RE: The Weak US Dollar

Sun Jul 15, 2007 8:30 am

What flavour of Kool-Aid have you been drinking lately? :P
Someday the sun will shine down on me in some faraway place - Mahalia Jackson
 
British767
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RE: The Weak US Dollar

Sun Jul 15, 2007 8:37 am

I love the rate we can get for the US $ at the moment. I've just got back a few weeks in the US, and I spent less on my credit card than I thought I would. Then considering U.S. prices were cheaper before it started to become weaker, we have an added bonus!!
 
RichPhitzwell
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RE: The Weak US Dollar

Sun Jul 15, 2007 8:45 am

Yay for the weak dollar that is still stronger than third world countries.  champagne 

Why are so few of you guys on the other side of the pond not coming over for a visit? Why are you guys not buying more of our goods?
Nonav.com kinda like Whiners except the lights are on and the pimps been paid
 
British767
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RE: The Weak US Dollar

Sun Jul 15, 2007 8:50 am

Quoting RichPhitzwell (Reply 4):
Why are you guys not buying more of our goods?

Don't forget, it's not a simple case of "I'm just popping to the States to get a pair of jeans." Weekend travels to New York are becoming more popular due to it being cheaper to fly to than anywhere else in the States, and the fact it's New York helps.
 
AsstChiefMark
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RE: The Weak US Dollar

Sun Jul 15, 2007 8:59 am

If the US economy is supposed to be so strong, why is our currency going down the shitter? Because everyone else's is stronger? If that's the case, how can the Republicans say our economy is strong?
Red tail...Red tail...Red tail...Red tail...Red tail...Red tail...Red tail...Red tail...Damned MSP...Red tail...Red tail
 
Arniepie
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RE: The Weak US Dollar

Sun Jul 15, 2007 9:09 am

Quoting AA787823 (Thread starter):
I personally hope the USD drops another 20-30% against the world currencies

It better stays going down that way because we (the whole family , mom, dad, sister+friend, Brother and GF and the 2 of us) have planned to go out Christmas shopping in NY and Chicago at the end of the year so let's all root for that 20-30% extra off by then
[edit post]
 
RichPhitzwell
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RE: The Weak US Dollar

Sun Jul 15, 2007 9:15 am

Quoting British767 (Reply 4):
Don't forget, it's not a simple case of "I'm just popping to the States to get a pair of jeans." Weekend travels to New York are becoming more popular due to it being cheaper to fly to than anywhere else in the States, and the fact it's New York helps.

Thank you for your support of our strong economy. Make sure to buy a cheap canon lens, or Levi jeans while you are here. Those products are made in the states, right?

On a personal note, thats one reason I want to move to the north east. "come on honey, lets pack up the kids and go to London for the weekend"

Us west coasters get alittle screwed in that department and we cant just say "lets go to Tokyo for the weekend"...Im jealous now.
Nonav.com kinda like Whiners except the lights are on and the pimps been paid
 
AirTranTUS
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RE: The Weak US Dollar

Sun Jul 15, 2007 9:18 am

Quoting AA787823 (Thread starter):
I personally hope the USD drops another 20-30% against the world currencies which would really be great for our economy.

But it screws Americans who want to travel overseas. Bad idea.
I love ASO!
 
Pyrex
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RE: The Weak US Dollar

Sun Jul 15, 2007 9:39 am

Quoting AA787823 (Thread starter):
Why does every one get so upset about a weak US Dollar.

I'm not upset at all, I hope it drops another 50% - I'll be studying in the US for the next 2 years and taking out my loan in Euros...

As for calling George Bush a genius...
Read this very carefully, I shall write this only once!
 
AA787823
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RE: The Weak US Dollar

Sun Jul 15, 2007 12:02 pm

Quoting AsstChiefMark (Reply 5):
If the US economy is supposed to be so strong, why is our currency going down the shitter? Because everyone else's is stronger? If that's the case, how can the Republicans say our economy is strong?

The whole point to the original topic is that a weak US dollar is much better for our economy than a strong USD. A pair of Levi jeans that sells for $120.00 is only 60 GBP. The US company gets the sale, and the US company gets the profit.

Quoting AirTranTUS (Reply 8):
But it screws Americans who want to travel overseas. Bad idea.

The US government would rather have Americans stay home and visit America. The weak US dollar encourages that because a dollar will always be a dollar.
F.U.R.P.....Families Under Reduced Pay
 
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Acey
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RE: The Weak US Dollar

Sun Jul 15, 2007 12:04 pm

Made for some good shopping on my Alaskan cruise last week. Nearly on par with the loonie.
If a man hasn't discovered something that he will die for, he isn't fit to live. -- Martin Luther King, Jr.
 
Flygut
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RE: The Weak US Dollar

Sun Jul 15, 2007 6:05 pm

Quoting AA787823 (Reply 10):
The US government would rather have Americans stay home and visit America. The weak US dollar encourages that because a dollar will always be a dollar.

Sweet... I can go to Orlando, Six Flags and Dodge City again.  banghead 
Real men rotate from the taxiway
 
RobertNL070
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RE: The Weak US Dollar

Sun Jul 15, 2007 6:18 pm

Quoting RichPhitzwell (Reply 3):
Why are so few of you guys on the other side of the pond not coming over for a visit?

We're planning on coming over in October. Washington DC. Satisfied?  biggrin 

Robert
Born to be wild ...... until about 9 p.m.
Home = RTM, Rotterdam The Hague.
 
Klaus
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RE: The Weak US Dollar

Sun Jul 15, 2007 6:37 pm

Quoting AA787823 (Reply 10):
The whole point to the original topic is that a weak US dollar is much better for our economy than a strong USD.

For a country which still imports far more than it exports, a weak currency also means your costs will rise faster than your income. The currency is not so much a source of wealth, it's more an indicator of your current state of affairs...

With the falling Dollar, how will you motivate your foreign lenders to still buy your debt? Right: With rising interest. What does rising interest mean? Right: Even faster rising debt.

Your next substantial tax hike to pay down this debt is getting increasingly likely, and the longer it's delayed the higher it will become. It will of course have to be a democratic president who will have to clean up the gigantic mess since GWB will just continue to pretend everything couldn't be better as it is, with you following him in blissful oblivion.  hypnotized 

By comparison, Germany uses the strong and still rising Euro and still exports are booming and by far exceed the value of our imports. Which shows that fundamental strengths are much more important than mere currency exchange rates. If you don't have competititve products, lowering the value of your currency can't help you either.

I'm not so sure your home altar for GWB is really a good investment in this regard.
 
Mir
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RE: The Weak US Dollar

Sun Jul 15, 2007 7:01 pm

Quoting AA787823 (Thread starter):
(as long as we can make the monthly payments who cares how much debt we have???)

That kind of thinking has run a lot of individuals into a lot of problems in the US.

-Mir
7 billion, one nation, imagination...it's a beautiful day
 
Arniepie
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RE: The Weak US Dollar

Sun Jul 15, 2007 7:08 pm

Please disregard Klaus and Mir's comments ,they obviously don't know what they are talking about.
At least 30% off by December will just do fine so I can get that new OMEGA watch as we will be visiting the NY shopping scenery by then.
[edit post]
 
Klaus
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RE: The Weak US Dollar

Sun Jul 15, 2007 7:15 pm

Quoting ArniePie (Reply 16):
Please disregard Klaus and Mir's comments ,they obviously don't know what they are talking about.
At least 30% off by December will just do fine so I can get that new OMEGA watch as we will be visiting the NY shopping scenery by then.

Sure... but fire sales are such a short-term enjoyment...  mischievous 
 
AA787823
Topic Author
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RE: The Weak US Dollar

Sun Jul 15, 2007 10:58 pm

Quoting Klaus (Reply 14):
With the falling Dollar, how will you motivate your foreign lenders to still buy your debt? Right: With rising interest. What does rising interest mean? Right: Even faster rising debt.

Then we wont borrow foreign money, we will just crank up the printing presses and print more Benjamine and Jacksons at home!

Quoting Klaus (Reply 14):
Your next substantial tax hike to pay down this debt is getting increasingly likely, and the longer it's delayed the higher it will become. It will of course have to be a democratic president who will have to clean up the gigantic mess since GWB will just continue to pretend everything couldn't be better as it is, with you following him in blissful oblivion.

We currently have no qualified Democratic candidates. We WILL have another Republican in 2008!
F.U.R.P.....Families Under Reduced Pay
 
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casinterest
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RE: The Weak US Dollar

Sun Jul 15, 2007 10:58 pm

The weak US Dollar has benefitted me a TON. Being young and involved in a 401K retirement plan, I have over 45% of my assets tied to MultiNational and International Stocks. The Weakening of the US Dollar actually makes my investments worth more since I not only get the benefit of the stock increases, I get the benefit of the currency exchange as well.

In such a global environment, there are many US companies that are seeing an increase in exports. Boeing is a Prime Example. Of course importing from SE Asia is still the cheapest way to get most goods, and Oil does have to be imported from the Middle East. The fall in the dollar will hurt imports of oil, but since India and China still have a pretty hard peg to the US dollar, those goods aren't increasing to much . However they are getting cheaper for Europeans, and this will cause competition for those resources between Europe and the US.
Where ever you go, there you are.
 
Mir
Posts: 19491
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RE: The Weak US Dollar

Sun Jul 15, 2007 11:10 pm

Quoting AA787823 (Reply 18):
Then we wont borrow foreign money, we will just crank up the printing presses and print more Benjamine and Jacksons at home!

Hooray for hyperinflation!  Yeah sure

Quoting AA787823 (Reply 18):
We currently have no qualified Democratic candidates. We WILL have another Republican in 2008!

You make the mistake of assuming that there are qualified Republican candidates as well. The democrats will win the White House in '08 for the same reason that they won the Congress in '06 - people are sick of the Republicans, and somehow believe that the Democrats will make things better. Perhaps this time they will. But I'm not getting my hopes up.

-Mir
7 billion, one nation, imagination...it's a beautiful day
 
Klaus
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RE: The Weak US Dollar

Sun Jul 15, 2007 11:22 pm

Quoting AA787823 (Reply 18):
Then we wont borrow foreign money, we will just crank up the printing presses and print more Benjamine and Jacksons at home!

With rapidly escalating inflation and plunging investor confidence (both domestic and international) that would be a perfect recipe for disaster!

Fortunately I don't think Bernanke would be stupid enough to embark on such a course, even if Bush might like him to.

Actual substantial solution of your problems is unfortunately the only way out of this, and it will require a substantial amount of work and quite a few pains on the way - the more the longer you're putting it off.
 
soyuzavia
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RE: The Weak US Dollar

Sun Jul 15, 2007 11:23 pm

Quoting AA787823 (Reply 18):
Then we wont borrow foreign money, we will just crank up the printing presses and print more Benjamine and Jacksons at home!

If you want to see firsthand what is it is like to live in Zimbabwe, where you need a wheelbarrow of money to buy a loaf of bread, then sure, go ahead and print all the money you like. Ever hear the saying, don't write cheques your arse can't cash.....same thing here......
 
AA787823
Topic Author
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RE: The Weak US Dollar

Sun Jul 15, 2007 11:35 pm

Quoting CasInterest (Reply 19):
The weak US Dollar has benefitted me a TON. Being young and involved in a 401K retirement plan, I have over 45% of my assets tied to MultiNational and International Stocks. The Weakening of the US Dollar actually makes my investments worth more since I not only get the benefit of the stock increases, I get the benefit of the currency exchange as well.

Me as well. I have invested into to different international funds, both are returing close to 30% YTD!
F.U.R.P.....Families Under Reduced Pay
 
UH60FtRucker
Posts: 3252
Joined: Tue Mar 29, 2005 9:15 am

RE: The Weak US Dollar

Sun Jul 15, 2007 11:36 pm

It seems like every month or two, someone makes a thread about the US Dollar:
The United States Dollar (by Derico May 18 2007 in Non Aviation)
Dow Getting Very Near 13,000! (by AA787823 Apr 20 2007 in Non Aviation)
How Far Will The US Dollar Drop? (by AA787823 Dec 4 2006 in Non Aviation)
Fiscal 06 Budget At $250Billion, Not $413Billion (by UH60FtRucker Oct 7 2006 in Non Aviation)
Fall 2007 Economic Forecast (by Allstarflyer Jul 6 2007 in Non Aviation)
Euro Hits Record High Against US Dollar (by UTA_flyinghigh Apr 27 2007 in Non Aviation)

....... and the basic conclusion is almost every one of those threads? A lot of people don't understand the basic economics of the issue. As shown by some of the posters in this thread... and especially the ORIGINAL poster!!  yuck 

Quoting AA787823 (Thread starter):
I personally hope the USD drops another 20-30% against the world currencies which would really be great for our economy.

Why?

Make a sensible economic argument of why we ought to let this happen. Weigh in the negative consequences, as well as any beneficial consequences, and prove to us that the benefits out weigh the negatives.

I don't think you'll be able to do it. Why? Because of this:

Quoting AA787823 (Thread starter):
GWB is a genious with our economy

Anyone who has studied basic economics knows that the president has very loose control over the economy. He can introduce legislation that may effect long term factors, but the here and now? Very little control.

There are a multitude of more important factors that control the economy. None of them being the US president. So that's why I don't think you'll be able to answer my above question. Because you clearly don't have a basic understanding.

-UH60
Your men have to follow your orders. They don't have to go to your funeral.
 
AA787823
Topic Author
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RE: The Weak US Dollar

Sun Jul 15, 2007 11:40 pm

Quoting UH60FtRucker (Reply 24):
Make a sensible economic argument of why we ought to let this happen. Weigh in the negative consequences, as well as any beneficial consequences, and prove to us that the benefits out weigh the negatives.

I don't think you'll be able to do it. Why? Because of this:

Because the USD is weaker our goods are cheaper over seas. For a EU airline to buy the 787 its like getting 30% off compared to the A350. Would Boeing have sold 600 787s if the dollar was stronger than the Euro? Dont think so.
It encourages Europeans to come to USA on vacation and pump more $$$ into our economy. The only negative is it makes it more expensive for Americans to import things..
F.U.R.P.....Families Under Reduced Pay
 
Mexicana757
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RE: The Weak US Dollar

Sun Jul 15, 2007 11:47 pm

Quoting AA787823 (Reply 18):

Then we wont borrow foreign money, we will just crank up the printing presses and print more Benjamine and Jacksons at home!

Not the solution. That would create more problems.

Quoting AA787823 (Thread starter):
I personally hope the USD drops another 20-30% against the world currencies which would really be great for our economy.

Are you serious??? A drop in the USD means our economy isn't doing so well. And countries who hold bonds (US debt) in USD will be looking to dump them, like China.
http://www.nydailynews.com/money/200...a_may_slow_buying_of_us_bonds.html

http://chinadigitaltimes.net/2007/03...ay_sell_us_bonds_william_sluis.php
 
UH60FtRucker
Posts: 3252
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RE: The Weak US Dollar

Sun Jul 15, 2007 11:55 pm

You know what amazes me?

AA787823... you're totally contracting yourself.

You said in this thread:

Quoting AA787823:
I personally hope the USD drops another 20-30% against the world currencies which would really be great for our economy.

But in a thread you started a few months ago: How Far Will The US Dollar Drop? (by AA787823 Dec 4 2006 in Non Aviation) - you said the following:

Quoting AA787823:
And sooner or later China will stop financing the US, OR sell the existing loan owed to another country to get a return on their investment with a stonger currency.

and:

Quoting AA787823:
The Chinese are likely to stop financing the US deficit.

---------------------------------------

And you further contradict yourself when you say:

Quoting AA787823:
GWB is a genious with our economy

But in your past thread you said:

Quoting AA787823:
Bush has screwed up big time with all his deficit spendign.

---------------------------------------

Then another member in your past thread says:

Quoting Prebennorholm:

If nothing is done rather quickly, then the money lending wells gradually dry up completely, then there is only one way to service old debts and keep the nation running - in popular world to speed up the money press. That leads directly to hyperinflation as it was known mainly a few decades ago in several Latin American countries.

.... to which you reply

Quoting AA787823:
I agree 100%.

and then:

Quoting Prebennorholm:
And that future is not far away. Six months to a couple of years depending on decisions in Tokyo and Beijing.

which you also:

Quoting AA787823:
I agree 100%.

---------------------------------------

In that past thread, you were schooled by numerous individuals, and your response? Nothing. You ignored the thread and allowed it to fade into the archives. So which is it AA787?? Is the weak dollar good or bad? Is President Bush a genius or a fool? Do you still "agree 100%" that we're headed for hyperinflation? Do you still "agree 100%" that we are 6-12 month away from a monetary implosion?

And one last question, have you heard about the spell check function at the top of the post-typing-block?

-UH60
Your men have to follow your orders. They don't have to go to your funeral.
 
JRadier
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Joined: Mon Sep 27, 2004 11:36 pm

RE: The Weak US Dollar

Mon Jul 16, 2007 12:13 am

Quoting AA787823 (Reply 25):
The only negative is it makes it more expensive for Americans to import things..

And you know what the biggest problem is...... The US imports far more then it exports!! The trade dificit of the US has been rising since 1991 and is currently (2006) at 758 billion dollars! So each year that amount goes outside of it's borders, increasing US debt. You tell me why a low dollar should be beneficial. Looks to me (and luckily a whole arsenal of economists with me) that a weak US dollar isn't exactly good. Let alone when China decides to revaluate the Yuan, then the end is near to the US as we know it.

(source trade deficit: US Cencus Bureau, Foreign Trade division, http://www.census.gov/foreign-trade/statistics/historical/gands.txt)

[Edited 2007-07-15 17:24:10]
 
Falcon84
Posts: 13775
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RE: The Weak US Dollar

Mon Jul 16, 2007 12:30 am

Quoting AA787823 (Reply 18):
Then we wont borrow foreign money, we will just crank up the printing presses and print more Benjamine and Jacksons at home!

Which, even a know-nothing on economics like myself realizes, causes hyper-inflation, dude.

You want to see the dollare weakended so much that it hurts the American consumser and causes inflation? Where did you get your degree from? Bob Jones U?
Work Right, Fly Hard
 
nosedive
Posts: 2176
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RE: The Weak US Dollar

Mon Jul 16, 2007 12:33 am

Quoting AA787823 (Reply 25):
Would Boeing have sold 600 787s if the dollar was stronger than the Euro? Dont think so.

You're setting one industry as an example of the entire scope of trade. Could it be that Boeing just made a damn good product that still would have been worth buying in the USD Euro exchange was still at 2005 levels? Maybe the fact that airlines want a replacement for older frames, plus the fact that Airbus is behind the ball, could also be a factor?
Furthermore, if your analysis holds any water, shouldn't the 737 kick the A320s ass every day of the week and twice on Sunday?
Acting like one factor explains everything is bull.
 
LH423
Posts: 5923
Joined: Sun Jul 11, 1999 6:27 am

RE: The Weak US Dollar

Mon Jul 16, 2007 1:09 am

Quoting Pyrex (Reply 9):
I'm not upset at all, I hope it drops another 50% - I'll be studying in the US for the next 2 years and taking out my loan in Euros...

HA! I'm in school in Canada and the 'comfortable' 15-17% I enjoyed back in January is now down to 5%. Meaning my tuition just jumped 10% in six months (that's over $1000 difference). No, I'd much rather see a stronger dollar. I think we can find a middle ground. Not necessarily back to the days of the USD0.85 Euro or USD0.60 Canadian dollar (though, for me that'd be lovely) but I think the USD is treading the fine line between having trade advantages and being too low.

Quoting AA787823 (Reply 18):
Then we wont borrow foreign money, we will just crank up the printing presses and print more Benjamine and Jacksons at home!

Yes, because Zimbabwe and Germany in the 1920s are such excellent examples of what hyper-inflation can do for your economy.

Quoting AA787823 (Reply 25):
The only negative is it makes it more expensive for Americans to import things..

And given that the US imports quite a bit more than it exports (something that is not going to change anytime soon), the weak dollar is actually somewhat of a detriment.

LH423
« On ne voit bien qu'avec le cœur. L'essentiel est invisible pour les yeux » Antoine de Saint-Exupéry
 
SJCRRPAX
Posts: 961
Joined: Wed Dec 21, 2005 2:29 am

RE: The Weak US Dollar

Mon Jul 16, 2007 3:06 am

Quoting UH60FtRucker (Reply 27):
AA787823... you're totally contracting yourself.

Quoting UH60FtRucker (Reply 27):
And one last question, have you heard about the spell check function at the top of the post-typing-block?

A corollary of Murphy's law is that if you point out spelling errors on line you will create one yourself. It's con·tra·dict·ing.

[Edited 2007-07-15 20:09:29]
 
UH60FtRucker
Posts: 3252
Joined: Tue Mar 29, 2005 9:15 am

RE: The Weak US Dollar

Mon Jul 16, 2007 3:18 am

Quoting SJCRRPAX (Reply 32):

lol... well that's more of a grammar error than a spelling error. Something that the "check spelling" feature would not highlight.

However, the feature does catch words like "stonger" "genious" "spendign" etc.

-UH60
Your men have to follow your orders. They don't have to go to your funeral.
 
baroque
Posts: 12302
Joined: Thu Apr 27, 2006 2:15 pm

RE: The Weak US Dollar

Mon Jul 16, 2007 3:26 am

Quoting SJCRRPAX (Reply 32):
Quoting UH60FtRucker (Reply 27):
And one last question, have you heard about the spell check function at the top of the post-typing-block?

A corollary of Murphy's law is that if you point out spelling errors on line you will create one yourself. It's con�tra�dict�ing.

Spell checks are only available if your name is Merlin, or presumably Spitfire, Mosquito, Lancaster or Mustang!
 
N174UA
Posts: 1010
Joined: Thu Jun 01, 2006 4:17 pm

RE: The Weak US Dollar

Mon Jul 16, 2007 5:04 am

Quoting Klaus (Reply 14):
Your next substantial tax hike to pay down this debt is getting increasingly likely, and the longer it's delayed the higher it will become

 checkmark  Even without Bush's tax cuts, tax increases still are required, as more and more baby boomers in this country retire. The generation following (me included) the Baby Boom are not large enough to offset the lost tax revenue. Increasing corporate taxes will have a very negative effect on the economy (i.e. even more of an incentive to outsource overseas) and so that leaves little people like me to pay more.

Quoting Klaus (Reply 14):
By comparison, Germany uses the strong and still rising Euro and still exports are booming and by far exceed the value of our imports. Which shows that fundamental strengths are much more important than mere currency exchange rates. If you don't have competititve products, lowering the value of your currency can't help you either.

Pick up this week's edition of The Economist. It discusses in depth about Europe's "recovery" and the likelihood of how loing it can continue. More specifically, there is an article about Germany's turnaround. Again, the article talks about what Germany must do to sustain it.

Quoting CasInterest (Reply 19):
Being young and involved in a 401K retirement plan, I have over 45% of my assets tied to MultiNational and International Stocks.

Good for you. I'm positioned in a very similar fashion, and Int'l. is leading the way.

Quoting Klaus (Reply 21):
Fortunately I don't think Bernanke would be stupid enough to embark on such a course, even if Bush might like him to.

If anyone deserves credit for the economic success we've seen over the last 20 years, it's Alan Greenspan and his disciple, Ben Bernanke. Greenspan's policies to establish price stability and targeted inflation have been key. The recessions we've had since 1980 have been shorter in duration, and the time in between them have been longer. Tax cuts that Bush pushed through were a short-term band-aid to get us past the recession of 2000, but they will end. Bush hasn't made many good choices (I say this in hindsight after voting for him twice) but nominating Bernanke as Fed Chairman was one of the few highlights, along with John Roberts for Chief Justice and Samuel Alito to replace O'Connor. But I digress there.
 
rwsea
Posts: 2515
Joined: Sun Jan 30, 2005 2:23 pm

RE: The Weak US Dollar

Mon Jul 16, 2007 5:59 am

So many ignorant comments, so little time ...

Quoting AA787823 (Reply 18):
Then we wont borrow foreign money, we will just crank up the printing presses and print more Benjamine and Jacksons at home!

Yeah, why don't you go visit Zimbabwe and see how well that's working for them right now.

Quoting AA787823 (Reply 25):
Because the USD is weaker our goods are cheaper over seas. For a EU airline to buy the 787 its like getting 30% off compared to the A350.

Airbus prices everything in dollars - no such advantage whatsoever.

Quoting AA787823 (Reply 25):
It encourages Europeans to come to USA on vacation and pump more $$$ into our economy.

Except for the fact that they're treated like criminals getting booked at a police station (photos, fingerprinting, etc.) on their way in, thus keeping many of them away.
 
Mir
Posts: 19491
Joined: Mon Jan 05, 2004 3:55 am

RE: The Weak US Dollar

Mon Jul 16, 2007 6:19 am

Quoting RwSEA (Reply 36):
Yeah, why don't you go visit Zimbabwe and see how well that's working for them right now.

I posted this in another thread, but it bears repeating: Zimbabwe's inflation rate is close to 1000% (not a typo, that's three zeros). The next-worst inflation rate in the world is a "mere" 64% (Iraq).

-Mir
7 billion, one nation, imagination...it's a beautiful day
 
N174UA
Posts: 1010
Joined: Thu Jun 01, 2006 4:17 pm

RE: The Weak US Dollar

Mon Jul 16, 2007 6:41 am

Quoting RwSEA (Reply 36):
Yeah, why don't you go visit Zimbabwe and see how well that's working for them right now.



Quoting Mir (Reply 37):
I posted this in another thread, but it bears repeating: Zimbabwe's inflation rate is close to 1000% (not a typo, that's three zeros). The next-worst inflation rate in the world is a "mere" 64% (Iraq).

Check out Pg. 50 in the 7/14-7/20 edition of The Economist. The article states that the "official" inflation rate is estimated to be 3,700%, but could be TWICE that. The economy is expected to completely collapse within 6 months, probably sooner. The article references the fact that President Robert Mugabe ignores the Governor of the Central Bank there, because Mugabe apparently "despites bookish economics". That ignorance is a very harsh reality in Zimbabwe today.
 
Arniepie
Posts: 1445
Joined: Thu Aug 04, 2005 11:00 pm

RE: The Weak US Dollar

Mon Jul 16, 2007 6:44 am

There are greater consequences to be considered too regarding the $-value.
Some oil and gas producers (initiative led by IRAN) are pushing their larger customers (ex. Japan and china) not to use the almighty greenback as the currency for oil&gas purchases but pay in Yen's or Euro's.
As for Japan this means a direct need for more yens and Euro's and therefor they will be pushed to get rid of the $ which will lead to a further dollar devaluation and a more expensive yen.
For Japan this will mean a 10-12 billion $ trade per year that in the future will have to be payed in other, stronger, currencies.
Also if this is a trend that will be picked up by the other large energy exporters (Russia,S.Arabia, Venezuela,...) the price for a barrel of oil or gas that goes to the US will heavily depend on its value against the other large currencies (Euro, RMB, GBPound,Yen) and will most likely skyrocket to a 100$+ price not far in the future.


This is off course with a lot of ifs and buts ,but the Iran/Japan/China issue is going on as we speak and a lot of countries that control these oil- and gas-reserves are not really favorable towards the US so it could be used as a political weapon too.
[edit post]
 
N231YE
Posts: 2620
Joined: Tue Jul 25, 2006 9:24 am

RE: The Weak US Dollar

Mon Jul 16, 2007 7:14 am

Quoting UH60FtRucker (Reply 24):
Quoting AA787823 (Thread starter):GWB is a genious with our economy
Anyone who has studied basic economics knows that the president has very loose control over the economy. He can introduce legislation that may effect long term factors, but the here and now? Very little control.

There are a multitude of more important factors that control the economy. None of them being the US president. So that's why I don't think you'll be able to answer my above question. Because you clearly don't have a basic understanding.

I agree. I remember in an economics class, the instructor once stated that the Federal Reserve Charmain is arguably more powerful then the president.

Quoting Falcon84 (Reply 29):
Quoting AA787823 (Reply 18):Then we wont borrow foreign money, we will just crank up the printing presses and print more Benjamine and Jacksons at home!Which, even a know-nothing on economics like myself realizes, causes hyper-inflation, dude.

Agreed again. That is why we have taxes. The government can't spend the very money it produces, it can only spend "public money"...otherwise, we'd have France a la pre-revolution.
 
greasespot
Posts: 2967
Joined: Sat Apr 24, 2004 10:48 am

RE: The Weak US Dollar

Mon Jul 16, 2007 7:22 am

Quoting UH60FtRucker (Reply 27):
In that past thread, you were schooled by numerous individuals, and your response? Nothing. You ignored the thread and allowed it to fade into the archives.

Which will behis response in here as well.....Smart money says he does not reply to your points...

GS
Sometimes all you can do is look them in the eye and ask " how much did your mom drink when she was pregnant with you?"
 
Klaus
Posts: 21364
Joined: Wed Jul 11, 2001 7:41 am

RE: The Weak US Dollar

Mon Jul 16, 2007 7:28 am

Quoting RwSEA (Reply 36):
Airbus prices everything in dollars - no such advantage whatsoever.

Well... it is certainly a difficult reality for Airbus as they are paying most of their costs in Euros but only get Dollars in revenue... with their primary (and basically only) competitor paying costs mostly in Dollar and keeping prices constrained it does affect Airbus' bottom line. Their restructuring effort under way right now is at least in part owed to the falling Dollar...

Quoting Arniepie (Reply 39):
Also if this is a trend that will be picked up by the other large energy exporters (Russia,S.Arabia, Venezuela,...) the price for a barrel of oil or gas that goes to the US will heavily depend on its value against the other large currencies (Euro, RMB, GBPound,Yen) and will most likely skyrocket to a 100$ price not far in the future.

Many oil-exporting countries are buying a significant (and growing!) part of their imports in Euro or other non-Dollar denominations, so a falling Dollar will for sure see the oil price very reluctant to follow down. In Dollars it will probably rise rather rapidly in such a scenario, with the possible end point in the oil producers abandoning the Dollar completely as the reference currency for the oil business.

This trend has been delayed with american political pressure thus far (some say even the Iraq invasion was in part related to Saddam's rebadging iraqi oil in Euros), but with the shrinking american weight on the global scale there may be too many political bills to pay for the next US presidents for being able to throw their weight around as needed to keep the Dollar as the near-exclusive oil currency.

And in that case the Dollar value might well enter yet another rapid descent when the formerly oil-bound Dollars come flooding back home, with further skyrocketing energy prices in the USA.

I don't think that is anything any american could want, as probable as a slower shift away from the "oil Dollar" may be already now.
 
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Aaron747
Posts: 10384
Joined: Thu Aug 07, 2003 2:07 am

RE: The Weak US Dollar

Mon Jul 16, 2007 7:35 am

Quoting UH60FtRucker (Reply 27):

In that past thread, you were schooled by numerous individuals, and your response? Nothing. You ignored the thread and allowed it to fade into the archives. So which is it AA787?? Is the weak dollar good or bad? Is President Bush a genius or a fool? Do you still "agree 100%" that we're headed for hyperinflation? Do you still "agree 100%" that we are 6-12 month away from a monetary implosion?

Another classic UH60 slam dunk. Do you really expect an answer? He's still trying to find where the light switch went...
If you need someone to blame / throw a rock in the air / you'll hit someone guilty
 
MD11Engineer
Posts: 13916
Joined: Sun Oct 26, 2003 5:25 am

RE: The Weak US Dollar

Mon Jul 16, 2007 7:52 am

Quoting N174UA (Reply 38):
Check out Pg. 50 in the 7/14-7/20 edition of The Economist. The article states that the "official" inflation rate is estimated to be 3,700%, but could be TWICE that. The economy is expected to completely collapse within 6 months, probably sooner. The article references the fact that President Robert Mugabe ignores the Governor of the Central Bank there, because Mugabe apparently "despites bookish economics". That ignorance is a very harsh reality in Zimbabwe today.

My grandmother (now 95 years old) could have given Mugabe a few hints about what hyperinflation really does to ordinary people (she experienced it in the 1920s) or alternatively he could watch the first 10 minutes or so of "Kuhle Wampe" by Bertolt Brecht about the life of unemployed in Germany during the big economic crisis in the late 1920s (now unemployment benefits back then).

Jan
Je Suis Charlie et je suis Ahmet aussi
 
Falcon84
Posts: 13775
Joined: Fri Sep 10, 2004 11:52 am

RE: The Weak US Dollar

Mon Jul 16, 2007 8:23 am

Quoting Aaron747 (Reply 43):
Another classic UH60 slam dunk. Do you really expect an answer? He's still trying to find where the light switch went...

Hell, the light was never one, and no one's been home there for years, sounds like.
Work Right, Fly Hard
 
allstarflyer
Posts: 3264
Joined: Mon Jan 10, 2005 7:32 am

RE: The Weak US Dollar

Mon Jul 16, 2007 9:04 am

Quoting AA787823 (Reply 18):

You got more than owned here - more like bought and sold. In any case . . .

Quoting UH60FtRucker (Reply 24):
A lot of people don't understand the basic economics of the issue.



Quoting UH60FtRucker (Reply 24):
Because you clearly don't have a basic understanding.



Quoting UH60FtRucker (Reply 27):
Is the weak dollar good or bad?



Quoting Aaron747 (Reply 43):
Another classic UH60 slam dunk.

Really? I don't doubt that's what he did with the threadstarter, but I've not seen his own take on what the deal is, because neither this . . .

Quoting UH60FtRucker (Reply 24):
Weigh in the negative consequences, as well as any beneficial consequences, and prove to us that the benefits out weigh the negatives.

. . . nor this . . .

Quoting UH60FtRucker (Reply 24):
There are a multitude of more important factors that control the economy.

. . . tells me jack about his opinion on the actual issue.

IIRC, you mentioned a long time ago you were an economic and/or financial major in college. I'd like to hear your take.

-R
Living the American Dream
 
Falcon84
Posts: 13775
Joined: Fri Sep 10, 2004 11:52 am

RE: The Weak US Dollar

Mon Jul 16, 2007 10:12 am

Anyone find it amazing that the author of the thread just kind of dissapeared under the weight of the facts?

That's always quite amusing.
Work Right, Fly Hard
 
Klaus
Posts: 21364
Joined: Wed Jul 11, 2001 7:41 am

RE: The Weak US Dollar

Mon Jul 16, 2007 10:38 am

Quoting Falcon84 (Reply 47):
Anyone find it amazing that the author of the thread just kind of dissapeared under the weight of the facts?

That's always quite amusing.

I think you can still hear him moan weakly somewhere under that pile...!  mischievous 
 
Marcus
Posts: 1665
Joined: Fri Apr 20, 2001 5:08 am

RE: The Weak US Dollar

Tue Jul 17, 2007 5:10 am

Quoting Mexicana757 (Reply 26):
Quoting AA787823 (Thread starter):
I personally hope the USD drops another 20-30% against the world currencies which would really be great for our economy.

Yay....that will make my weekly shopping trips to the US less expensive.........hurray for the 20-30% drop!...........oh wait, my salary is in dollars.........errrrr nevermind.
Kids!....we are going to the happiest place on earth...TIJUANA! signed: Krusty the Clown

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