The greenback.

Steve_Kow

Banned
The greenback.

As I'm sure most of you know, the U.S dollar has been steadily declining versus most of the world's major currencies, especially the Euro and British pound. What are your thoughts on this?
 

zodiac66

Diabloii.Net Member
Mad Merlin said:
At this rate, the Canadian dollar will reign supreme once again!
NONONO...that can't happen. I like going to Toronto and getting clothing cheap.
 

Corneo

Diabloii.Net Member
Perhaps Allan Greenspan can fix this. Put him on prime time TV and tell him to say "buy more stuff!" It's bullet proof!
 

rplusplus

Diabloii.Net Member
Corneo said:
Perhaps Allan Greenspan can fix this. Put him on prime time TV and tell him to say "buy more stuff!" It's bullet proof!
Prime example "Dow closes at highest level in more than 2.5 years as investors cheer Greenspan's views".

Linky

R++
 

CaptJoe213

Diabloii.Net Member
I love Greenspan, I wish I had that man's job...he gets on tv, says his wife didn't give him any love last night, and boom, the market crashes.

he says his colonoscopy went well, and we have the biggest market rally in years.

I wanna get on tv and say my butt iches and affect the stock market lol
 

Killfrenzy

Diabloii.Net Member
Living in canada i like this... the AMERICAN CURRENCY!!!! what time would you like your breakfast sir? situation may be over!!! hurray!
 

Corneo

Diabloii.Net Member
My HS econ teacher worshiped Greenspan. He made a poster of all the bills and placed Greenspan's picture in the portrait. "In Greenspan We Trust". I guess your pretty powerful when the show a graph of the stock market next to your picture. Every work that comes out of you mouth makes the graph go either up or down.
 

Mangoes-2003

Diabloii.Net Member
well if you caught Conan last night, Mike Myers showed how you can make Sir Wilfred Laurier into Spock on $5 CDN. People might wanna spend more money if you make it more fun to use, ya know?
 

Steve_Kow

Banned
The weaker dollar does make U.S products more competitive versus other nation's products, and because the Chinese and the Japanese have taken measures to align their currencies with the dollar, most of the correction in value has hit the Europeans. If the dollar doesn't gain value versus the Euro and pound I predict a further economic slump for the Europeans (and a signfigant gain for the U.S).

So on the one hand, U.S producers gain a competitive edge, at the cost of foreign investment capital and increased inflationary pressure.

What do you think the U.S should do?
 

rplusplus

Diabloii.Net Member
Steve_Kow said:
So on the one hand, U.S producers gain a competitive edge, at the cost of foreign investment capital and increased inflationary pressure.

What do you think the U.S should do?
The same Capitalists who invest in the US markets also Hedge their portfolios with offshore ventures and the equilibrium of the world markets usually will balance and nature abhors a vacuum. The trick is if you can 51% of the time lead the curve you can profit. Otherwise you be like me and stand by for the liquidation sale.

R++
 

maccool

Diabloii.Net Member
Isn't China's currency suppposed to be something like 20-40% undervalued? They keep it that way to attract foreign investors. Same thing with the U.S. A weak dollar here means the Euro buys more, which allows overseas investors to invest in U.S. corporations.

Of course, a weak dollar means foreign and domestic goods cost more for you and me because the material to produce said goods costs more. But a weak dollar also means U.S. goods cost less to foreign shoppers.

I'll wait for PLF to explain it all much better. Until then, back to the gold standard!
 

rplusplus

Diabloii.Net Member
A large factor is the labor costs. Europeans enjoy a nice wage IIRC and Americans even Minimum Wage is pretty decent depending on the local economy (Read California does not apply). In less developed nations the daily wage is a pittance and so thier costs are lower. That of course is the reason for the outsourcing of so many jobs overseas. The key to any economy is to constantly adapt to the markets. We saw that in the 90's downsizing. What's next? Guess right and it could make you the next billionaire!

R++
 

Sergeant

Diabloii.Net Member
Mad Merlin said:
At this rate, the Canadian dollar will reign supreme once again!
Pff, I wouldn't hold your breath or make a mass exodus to Canada just yet.

We're still stronger than many currencies and all it's indicitive of is fluctuations in the global economy caused by normal factors, war and so on. I'm not really all that worried.
 
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