Build Your Own Arcade Controls Forum
Main => Everything Else => Topic started by: Crazy Cooter on February 22, 2005, 01:37:08 pm
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http://moneycentral.msn.com/content/CNBCTV/Articles/Dispatches/P110182.asp
"The U.S. dollar took a pounding this morning, with traders worried about central banks moving away from the greenback. The dollar was trading at about $1.3232 per euro, up more than 1%. The greenback also fell against the yen, sinking to104.2 yen per dollar.
South Korea started the dollar selling. The country's central bank said it will diversify its holdings away from the dollar and Taiwan then said it would follow suit. In the past two weeks the dollar has given up more than half of its gains for the year, CNBC's Steve Liesman reported.
Central banks hold about 64% of their reserves in U.S. dollars and economists expect that percentage to fall, Liesman said."
Well it looks like the US dollar isn't "cool" to have anymore. The interest rates just took a jump too. I smell inflation... With the EU looking to open trading full time with China, I think the Euro is going to take over as the world currency. It would be wise for them (europeans) to start talking with Iraq & Saudi to start taking it directly. If they do, the US dollar is doomed. It looks like world confidence in the US economy is falling.
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For a second, I really thought this thread was referrencing my post here (re: Bejamin Port wine): http://forum.arcadecontrols.com/index.php/topic,32384.msg277278.html#msg277278 :)
'Cuz it *is* all about the Benjamins!
mrC
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The US$ has been dropping fast for the past year. All because of Bush spending and creating more of it to pay for the war.
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US currency??? I thought that it was plastic....that's what I use..... ;D
I never really carry cash anymore....and I have to plan it out ahead of time if I plan to use paper money.......
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America has no money. There are no longer any American dreams to follow. Do not leave your country.
If you need a better life move to France, or South Korea, then you will get what you deserve.
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You realize how bad the economy is when you have to travel abroad - the dollar really puts the squeeze on. I went home (to Ireland) in January, where $140 would only buy me 24 beers. The same money would have bought me at least 40 beers two years ago :'(
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http://moneycentral.msn.com/content/CNBCTV/Articles/Dispatches/P110182.asp
"The U.S. dollar took a pounding this morning, with traders worried about central banks moving away from the greenback. The dollar was trading at about $1.3232 per euro, up more than 1%. The greenback also fell against the yen, sinking to104.2 yen per dollar.
South Korea started the dollar selling. The country's central bank said it will diversify its holdings away from the dollar and Taiwan then said it would follow suit. In the past two weeks the dollar has given up more than half of its gains for the year, CNBC's Steve Liesman reported.
Central banks hold about 64% of their reserves in U.S. dollars and economists expect that percentage to fall, Liesman said."
Well it looks like the US dollar isn't "cool" to have anymore.
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Well thanks to George Bush's inept handling of the US economy I can now buy arcade parts from the states more cheaply.
I must say that was very considerate of him. Perhaps he's not such a bad chap after all. ;D
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Ya, but I own a few stocks that are in US funds. So I'm losing...
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I went home (to Ireland) in January, where $140 would only buy me 24 beers. The same money would have bought me at least 40 beers two years ago
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I spoke with my coworker who is going to Malaysia soon and he said it is already ~ 1 to 1 for buying power there.
i.e.: A $6 USD drink here costs $6 USD there. It used to be that you could leave the country with a couple bucks and live the high life. Not the case anymore. Are there any "cheap" countries to live in where you won't get caught up in a revolt/civil war/drug war?
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Is it better or worse for the US economy if the dollar falls?
Won't goods overseas sell better if the dollar is lower? What's the downside of the dollar falling? It's been 104 to the yen before, back in '94 I think.
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Is it better or worse for the US economy if the dollar falls?
Won't goods overseas sell better if the dollar is lower?
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Is it better or worse for the US economy if the dollar falls?
Won't goods overseas sell better if the dollar is lower?
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The downside is that American cost and inflation start to rise. Americans buy less foreign & american products, our economy slows and our buying power drops. As long as other countries do not really on American consumerism for THEIR economies, this will likely not affect them. If the country does rely on Americans buying their products, eventually their economies begin to slow as well.
In the short term, Americans get the short end of the stick, both at home and abroad. Only the current power of the economy mitigates this drop. If it continues to drop, however, inflation will rise at a more dramatic rate, and the economy may suffer a recession.
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Is it better or worse for the US economy if the dollar falls?
Won't goods overseas sell better if the dollar is lower? What's the downside of the dollar falling? It's been 104 to the yen before, back in '94 I think.
With a bum dollar, our exports sell easier. Our imports cost more. So if you produce stuff, it's good. If you consume stuff, it's bad. (generally speaking, it's much more complex than that)
The bad thing is this:
If we are running a deficit and need to borrow money, other countries can snatch it up for less. Good right? Bad. When the dollar increases, we have to pay them back.
Say 1 ruble buys $0.50 USD of stuff:
The US borrows 2 rubles to buy $1 of stuff today.
Tomorrow, the dollar is strong. 1 ruble buys $1 USD of stuff.
The US still has to pay back 2 rubles. Instead of having $2 worth of stuff, we only got $1.
The commies just ripped us of. That's how the game is played. Unless others consider you a "bad risk" (Like S. Korea & Taiwan yesterday). Then you can't get a loan... things get REAL ugly when that happens. Remember Mexico?
Another country will only be affected by a falling dollar if it holds a bunch of US currency. That's why S. Korea and Taiwan are "diversifying" by selling their US currency for the Euro. They have more faith in that economy over ours. The World Bank is following their lead. It's kind of like stocks in a way. The US gvmnt can hold the "value" of the dollar up only if it buys it's money back. Otherwise, the other countries have to find someone to buy it (just like a stock). If nobody wants it, it can plummet. That's what happened years ago with the peso.