Fucking bush... He is going to bury my savings! :feels-hot

I understand why those not in the US getting paid in dollars are feeling the pain of a weak dollar.

But what is the danger to the United States' economy with the weaker dollar? I know there are some, but I can't think of any.

Some Positives I see are:

-US stock market becomes more attractive to overseas money
-Exports go up/imports go down
-Interest rates are low, which will push expansion

Negatives?

Thanks.

Since the people here championing the strong dollar can't/won't answer, I?ll give you one...

Foreign investment.

While investing in the US has long been attractive to foreign investors, it has been due to the strength of the USD and it's stability. A weak dollar that fluctuates somewhat 'wildly' undermines that and would cause foreign investors to think twice.

:1orglaugh We have another economic expert here folks! Real TOP economic experts constantly debate and disagree on the pros and cons of a weak dollar but this guy is above that! He definately knows whats up.. 'cause he listen to Fox News!! :thumbsup :helpme

I see what you mean, though the investment is cheaper now for foreign money, if the dollar continues to devalue, their investments/returns would as well.

Also, if the central bank lets the money supply get too large, inflation will be a problem during a recovery. I think the Feds have done a great job, or just been lucky, with the money supply since the 70's...hope they keep up the good job there!

Thanks!

What was wrong with his post? He was asking a question and stating his observations based on basic economic theory. Did you fall asleep in economics 101 or something? I don't see anything about fox in his post, do you?

Please wise one, enlighten me.

:1orglaugh

Clueless? Wanna compare sheepskins pal?

See... stupid people break things down as simply as possible, and use general statements to justify the fact that they're wrong. Sure a lower dollar CAN be a way to cut the deficit, but if that's your only plan, then you're fucked. If you can explain how increasing the dept by borrowing as much as possible for bullshit reasons then keeping the dollar down is helping the economy, then I'll hire you to sell swampland in Florida to Donald Trump.

If you think the way this administration is handling the economy is in any way, shape, or form a positive thing for the country, then here's the gun pal, save the world from further generations of your ignorant children.

What have you offered to the thread shithead? Other that fox news this and fox news that...

What's your economic policy?

That's right... you don't have one, but want to champion a strong dollar. Hell -- I've given more negatives to a weak dollar than you have.

Carry on... Hannity and (who is his partner) this and Hannity and his partner that.

Blah blah blah

US stock market is unattractive to foreign investors. Yes the dow, nasdaq etc have gone up, but if you adjust for the depreciation of the USD the market has shown anaemic growth.

http://www.minimumeffort.com/djiavseuro.gif

Imports are actually going up faster than exports, because the US is further ahead in the economic recovery phase. Foreigners are still feeling the hurt, intensified by the USD fall, so they're not buying USD goods.

Interest rates are low, but the money supply M2, M3 is actually srhinking, what does this mean? people aren't borrowing money, even though the Government is giving it away

http://www.minimumeffort.com/M2_5yrs.png

One negative from US perspective is that foreigners will more likely buy US tangible assets like property, or maybe takeover some corporations.

Good thing Alan Greenspan reads this Board before he goes to FMOC meetings or else I'd say you're just wasting your time.:winkwink:

I see we've finally got someone here that is capable of discussing the issue. I apologize for the clueless comment, but at the same time I'm glad I made it.. as it elicited an intelligent response.

Of course a lower dollar cannot be the only plan.

Borrowing on a declining dollar (for whatever reason) and sinking the dollar is surely not any sort of an economic plan.

I haven't mentioned anything about this administration.

I also don't think they are doing a very good job of handling the economy. The premise of my posts in this thread is that the weak dollar is not in and of itself bad for America and Americans in the near future.

I haven't seen anyone able to dispute that...

Investment....thanks for the helpful informed responses :thumbsup

My economic policy? :1orglaugh

THis one is too much....

Cant you take the clues air head?!

The subject is too complex for any of us to have an opinion even worth mentioning... If experts cant agree.. what makes you believe your opinion is worth a fucking cent!?! Broke..? Is that what you are!? I though so...

"Negatives?

Thanks."

Can be interpretated in 2 ways... if this was an honest question.. sorry

I know it's hard to understand, but not everyone here is an idiot.

Some of us have economics degrees and some of us have advanced economic degrees. You have a hatred for fox news. :1orglaugh

'Experts' told people the earth was flat and the flight was not possible and other experts disagreed. 'Experts' not examined are nothing but rulers of thought for the masses.


I'm honestly surprised it took you so long to attack the 'nick' you must be so proud. Yes -- I'm so broke... I may lose my internet access in a few.

:1orglaugh

I'm looking too... :)

I give up.. you're too much!! economics degrees :1orglaugh

So you have some knowledge!?
Do you know what economic experts working for governement/opposition or studying every damn thing the governement does, 7 days a week are!?! THey study in DEPTH everything and use their extensive experience and brain to make decisions... And even in that group... whether republican, democrates or 3rd party observer... they disagree!

Continue thinking that your "knowledge" is worth a cent... Your knowledge is only good for entertainemnt purposes... small talks if you prefer.. making you feel intelligent somehow... :1orglaugh

btw.. you have an economic degree? Did everyone in your class had the same opinion on all the different economic issues!? Maybe... since so few of you are qualified to think! Knowledge is only a tool..

Well every time you invest your money somewhere you have an opportunity cost. By keeping money in US denominated assets it is a relatively poor utilisation of capital.

The lower the dollar falls the stronger the US economy gets. The only question is which eu welfare state will go belly up first, france or germany.

:Graucho

\
Why in the hell didn't you guys do that earlier????

:2 cents: , think about : debt to pay, interest to pay. China to pay for imports, oil ....

I do not say it is good or bad for the US, it is just more complicated and part of a big picture. The future will tell us...

weak dollar increases exports. a strong dollar does not do much to jump start the economy... particularly when Europe is hurting

which is why China intentionally has kept its currency weak for years.

I'm so impressed by your intellect.

The only thing you have to offer is that intelligent people disagree.

Bravo.

Does talking shit and offering nothing do something for you? Still waiting for any info you have on a strong or weak dollar.

Yes.

Of course not -- but the people that didn't have the same opinion could discuss it. Unlike some in this thread....

Go ahead...

fox new, hannity, fox news, hannity...

:1orglaugh

which is a bit scary actually.. If China floated their currency that'd bring huge sell side pressure on the USD :/

it sure is a strategic move from the US, rather than a result of economic failure.

as long as it doesnt affect the inflation, it's good for the US economy and bad for others. but what it will cause in the long run is questionable, yet irrelevant to Mr. Bush's plans.

i wonder when they present the % of economic growth as a major success of the current government, do they take into account how much value the money has lost? the volume in dollars might have gone up, yet it has less buying power now overseas.. this is not gonna be good for such a heavily consuming country who imports so many products. how long before prices start going up?

btw, imagine the chinese workers wanting to get paid based on the euro now, instead of the usd.

one of the main reasons of the recent war was to keep the oil prices indexed to usd, right after saddam tried to change that. the first betrayal he ever did to the people that gave him the dictatorship power for the purpose of keeping the war economy in middle east profitable to the US.

:ugone2far

I said I give up... doing it right now!

hrm i don't know if strategic move is exactly the word. With the twin deficits the dollar pretty much had only one direction to go.
It's something they've decided they can live with though.

I really sucks for me except it keeps mortgage rates in Canada low

fucking useless piece of shit currency bump..

1.2756 against the euro.

A low dollar has both negative and positive effects on various economical and social factors. The most important is to identify why the currency is weak now, since this is gonna play a major role in determining future changes and trends. I doubt there's any kind of strategy and i believe it's an outcome of bad handlings.

damn:(