This is the republican's economic plan. Waste all of our surplus money, set record deficits, create a tax break and then print some more money.
"41 are you sure money don't grow on trees?"
"Yes 43, I'm sure. It grows from printing presses - spend away son."
"41 are you sure money don't grow on trees?"
"Yes 43, I'm sure. It grows from printing presses - spend away son."
and so is the GBP... one of the effects of the declining USD is that it makes goods outside the US more expensive for US consumers... thus forcing US Industry to migrate back to the US plus makes it more cost effective for EU companies to send work to the US... in turn improving the US economy.
Well, I think it's all relative. Inflation hasn't changed and costs haven't really sored, so most of us wouldn't notice a thing ... but, yeah, in a sense we've all lost net worth (assuming we're all invested in USD).
I'm not sure anyone can prepare for currency fluxuations ... I guess gold or some other precious commodity would be your safest bet.
Phaedrus & Bill are pretty intune to this sort of stuff - hopefully they'll respond.
I'm not sure anyone can prepare for currency fluxuations ... I guess gold or some other precious commodity would be your safest bet.
Phaedrus & Bill are pretty intune to this sort of stuff - hopefully they'll respond.
Buddy,
I'm saying that blaming it on Canada is an illusion - they might be a small outcome of the problem, but they're not the problem and hardly the majority of the result. Thousands and thousands of IT jobs have been shipped to India, China, etc ...
It's happening everywhere.
I'm not trying to insult you - I was just making a point that this spans well beyond the Canadian exchange.
I'm saying that blaming it on Canada is an illusion - they might be a small outcome of the problem, but they're not the problem and hardly the majority of the result. Thousands and thousands of IT jobs have been shipped to India, China, etc ...
It's happening everywhere.
I'm not trying to insult you - I was just making a point that this spans well beyond the Canadian exchange.
It is really simple. We had a worldwide economic crises. The easiest thing for Bush was to do anything he could to lower the exchange rates. That causes lower imports due to higher prices for goods from abroad and more exports due to lower prices for selling them abroad. It is as simple as that. More exports mean more jobs are getting created. but he does not get that in the longterm it hurts the industry of your country because the export and import balances should be even.
If you live in the US and you want to base you net worth on the Canadian Economy then you are right. Compare the USD to the Euro or yen fine, but to compare it to the Canadian $ is a joke!. Please can someone give me the GDP # for Canada and the US.THe canadian $,Euro and yen have been getting hammered for years by the US$,does anybody remember when the Canadian $ was worth 93 cents? not surprising that some has been given back.
I love all the misguided theories
It is silly to think your net worth has changed one bit. Lander hit it 100% on the nail, unless inflation passes through as a result of the change in currency values then net worth of people in this country haven't changed a bit. The only way most of us has seen a change is that we are paying higher prices on energy than we should be. Oil prices have remained him, much of it attributed to the change in the dollar, but still there are other factors in that as well. Nor is the simplistic "we get more exports" argument all that true either. Jobs aren't going to come back to the US because of a better valued dollar, best we get out of that is that we lose fewer jobs in the near term. US manufacturing jobs that drive exports are very limited, much of them high tech products and very large capital items such as planes, cars and heavy machinery. Those items compete globally and due to modest demand for them everyone has priced their products to compete. Look at cars, has BMW repriced their cars to compete? Nope, not at all. So the idea that we will see big gains from exchange rates is overstated. The gains will be small. And so will those buying actual gold or any tangible products. The people who invested in the futures obviously have made good money, but those buying gold coins are kidding themselves. You ever try to sell those things? The commissions are huge relative to their value, they make selling a house at 6 or 7% seem like a bargain. It is not an efficient way by any means to make money from the trend.
So what to do about the problem? Nothing really. The most ironic thing about the whole thing is that if you ask most average Americans and say who is causing all this, guess what they say? The Chinese first, the Japanese would be high on the list as well. Now turn around and think about it, who is buying dollars right now to fight off the huge amount of speculative flow betting against the dollar? Number one it is the Chinese with their flows to guard the fixed rate, second it is the Japanese and their constant open market purchases.
So to make a complicated issue about as clear as it can get, the Chinese and Japanese are actually protecting our economy more than anyone, yet most Americans and hence politicians are out blaming them for economic woes. The fall in the dollar is being precipitated almost exclusively by speculative bets and low US interest rates. The thing is that the US interest rates are still the benchmark and no level of speculator in the world can break the US dollar in the fashion that George Soros broke the Pound Sterling not long ago. The Fed could just easily raise rates and the Chinese and Japanese could just continue their ways, maybe helped out by the ECB and next thing you know all these speculators will get hammered quickly. So don't pay any attention to the doom and gloom, it is not going to happen.
It is silly to think your net worth has changed one bit. Lander hit it 100% on the nail, unless inflation passes through as a result of the change in currency values then net worth of people in this country haven't changed a bit. The only way most of us has seen a change is that we are paying higher prices on energy than we should be. Oil prices have remained him, much of it attributed to the change in the dollar, but still there are other factors in that as well. Nor is the simplistic "we get more exports" argument all that true either. Jobs aren't going to come back to the US because of a better valued dollar, best we get out of that is that we lose fewer jobs in the near term. US manufacturing jobs that drive exports are very limited, much of them high tech products and very large capital items such as planes, cars and heavy machinery. Those items compete globally and due to modest demand for them everyone has priced their products to compete. Look at cars, has BMW repriced their cars to compete? Nope, not at all. So the idea that we will see big gains from exchange rates is overstated. The gains will be small. And so will those buying actual gold or any tangible products. The people who invested in the futures obviously have made good money, but those buying gold coins are kidding themselves. You ever try to sell those things? The commissions are huge relative to their value, they make selling a house at 6 or 7% seem like a bargain. It is not an efficient way by any means to make money from the trend.
So what to do about the problem? Nothing really. The most ironic thing about the whole thing is that if you ask most average Americans and say who is causing all this, guess what they say? The Chinese first, the Japanese would be high on the list as well. Now turn around and think about it, who is buying dollars right now to fight off the huge amount of speculative flow betting against the dollar? Number one it is the Chinese with their flows to guard the fixed rate, second it is the Japanese and their constant open market purchases.
So to make a complicated issue about as clear as it can get, the Chinese and Japanese are actually protecting our economy more than anyone, yet most Americans and hence politicians are out blaming them for economic woes. The fall in the dollar is being precipitated almost exclusively by speculative bets and low US interest rates. The thing is that the US interest rates are still the benchmark and no level of speculator in the world can break the US dollar in the fashion that George Soros broke the Pound Sterling not long ago. The Fed could just easily raise rates and the Chinese and Japanese could just continue their ways, maybe helped out by the ECB and next thing you know all these speculators will get hammered quickly. So don't pay any attention to the doom and gloom, it is not going to happen.
