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US Dolar sinks, what do you think?

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  • User profile image
    Ping



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    I think this is good for the world trade though, however, this will cause inflation, price will go up,
    Bank can raise the interest to solve it, well, not that easily.
    what do you think? People in EU and US?

  • User profile image
    Bas

    I know very little about economics. However, as an EU resident, all I know is this: cheaper importing of DVD's.

  • User profile image
    Sven Groot

    Bas wrote:
    I know very little about economics. However, as an EU resident, all I know is this: cheaper importing of DVD's.

    Yep Tongue Out

    However, a weak dollar means that the Euro is relatively expensive which makes Europe a less attractive place to buy stuff so it hurts our export.

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    Sven Groot

    Double post

  • User profile image
    Tensor

    That it is a deliberate plan by the US to get rid of the current massive deficit.

    Also has nice spin-offs for US industry as all those cheap imports cease being cheap.

    The biggest loser is like to be China, I would think.

  • User profile image
    Ping

    This teaches most people a important lesson: US dollar do change, we shouldn't buy US dollars in just for keep the price. The only stayble money is gold and silver.

  • User profile image
    Bas

    Sven Groot wrote:
    
    Bas wrote: I know very little about economics. However, as an EU resident, all I know is this: cheaper importing of DVD's.

    Yep

    However, a weak dollar means that the Euro is relatively expensive which makes Europe a less attractive place to buy stuff so it hurts our export.


    True, but due to my selfishness and my being completely oblivious to economies or the effects of decreased European export, I don't worry about that too much. The only way in which this noticably affects me is in lower prices for Region 1 DVD's. Wink

    If only the 360 supported region free movie-playback...

  • User profile image
    Tensor

    Ping wrote:
    

    This teaches most people a important lesson: US dollar do change, we shouldn't buy US dollars in just for keep the price. The only stayble money is gold and silver.



    Even the price of gold fluctuates. Currency tneds to fluctuate more, but if it teaches us anything it is, dont put all your eggs in one basket.

  • User profile image
    Ping

    yeah, don't put all eggs in one basket, a country should have different countrie's currency.
    This remind me of South Korea, they used to have this problem, and the whole country donate or sold their gold jewellery,
     well, they quite unite, and now they are strong.Smiley

  • User profile image
    JohnAskew

    Tensor wrote:
    That it is a deliberate plan by the US to get rid of the current massive deficit.

    Also has nice spin-offs for US industry as all those cheap imports cease being cheap.

    The biggest loser is like to be China, I would think.



    G.W. Bush Administration's plan: offload all responsibility for everything to anyone else.
     
    I am officially embarrassed and I apologize.

    China's (and Saudi's) massive trade imbalance with the USA is all offset with Treasury Bonds -- which means the USA has the ability to cheat them with currency games.

    It is a shameful strategy that the Republicans will not apologize for.

    I miss Bill.

    FWIW, the US middle class will be greatly affected with inflation, which is the inevitable result of the weaker dollar, as you pointed out, Ping.

    At least Wal-Mart is the biggest loser on the corporate side... yeah, they deserve it.

  • User profile image
    Antitorgo

    JohnAskew wrote:
    
    Tensor wrote: That it is a deliberate plan by the US to get rid of the current massive deficit.

    Also has nice spin-offs for US industry as all those cheap imports cease being cheap.

    The biggest loser is like to be China, I would think.



    G.W. Bush Administration's plan: offload all responsibility for everything to anyone else.


    I fail to see how this is Bush's fault. The President doesn't have much control over the economy. Since Bill was President in 2000 can I blame him for the dot.com bust? No, because he didn't have anything to do with it.

    If you want to blame a President then put the blame on Roosevelt, he's the one who took us off the Gold Standard and allowed the banks to play games with our currency (it has its good and bad points).

  • User profile image
    Charles

    Don't wind this thread into a political debate. Move along.
    C

  • User profile image
    Angus

    Having a weak dollar could cause some pretty large world economy issues. Comparing the dollar to the Pound Sterling shows that Britain will not be a good place to export from as the US will not want to buy so expensively, this could have a bad effect on some industries; but cheaper imports are nice. Tongue Out

    Gold tends to move in cycles, I know a few people who have invested in gold, it can be fairly good for a steady earner if you know the market well enough.

    Lots of people in the UK are now investing in wines, etc. as this can be a good store of money, and even bring quite a large turnover when sold. The problem is that for one to be able to invest properly in wine, one needs a proper wine cellar as the real wine investments come in barrels, not bottles. (This is as/more true for whisky.)

    It is a very interesting issue though.

    Angus Higgins

  • User profile image
    JohnAskew

    Antitorgo wrote:
     Roosevelt, he's the one who took us off the Gold Standard and allowed the banks to play games with our currency.


    I remember Richard M. Nixon doing this in 1972.
     
    Roosevelt?

    No politics, ok, Charles.
    This is simply an error correction, imho.

  • User profile image
    ScanIAm

    Ping wrote:
    

    This teaches most people a important lesson: US dollar do change, we shouldn't buy US dollars in just for keep the price. The only stayble money is gold and silver.



    Until recently, China held it's currency in step with the dollar and did so artificially.  This allowed chinese imports to be cheaper than US products.  But it also gave chinese investors some pretty strange expectations of the value of the US$.

    All money fluctuates in value over time.  If you want to make a profit, buy when the dollar is low vs. the yuan and sell when the dollar is high. 


  • User profile image
    JohnAskew

    JohnAskew wrote:
    
    Antitorgo wrote:  Roosevelt, he's the one who took us off the Gold Standard and allowed the banks to play games with our currency.


    I remember Richard M. Nixon doing this in 1972.
     
    Roosevelt?

    No politics, ok, Charles.
    This is simply an error correction, imho.


    http://en.wikipedia.org/wiki/Bretton_Woods_system

    Sweden abandoned the gold standard in 1929, the US in 1933, and other nations were, to one degree or another, forced off the gold standard.

    Nixon's edict was to no longer allow dollars be converted to US gold reserves.

    I see now and stand corrected.

  • User profile image
    ScanIAm

    Gold Standard, Silver Standard, Oil Standard, or Pokemon standard, having your money depend on a supply of stuff is pointless until the entire rest of the world does the same.  Further, what happens when you discover a huge cache of Gold?  Is all the currency suddenly worth less?  or more? 

    The underlying bargain of currency is labor and so when countries are willing to trade their labor for less, they sell more of that labor.  Westernized economies act like they are removed from this process because we get paid by managing the labor of others, but ultimately the world runs on labor.

    I propose a new world monetary standard called the "kilocalorie" Smiley

  • User profile image
    JohnAskew

    ScanIAm wrote:
    I propose a new world monetary standard called the "kilocalorie"


    I second the motion.

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