Dollar falling hard and fast!

Korgoth

Korgoth

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Who didn't see this coming, no matter how much we try and hammer this through the thick heads of our fellow countrymen, they will not see it until it smacks them in the face.

http://www.washtimes.com/upi-breaking/20050222-101328-6410r.htm

Numerous economists have been warning the U.S. balance of payments deficit and budget deficit, both at record levels, are exposing the dollar to extreme downward pressure.
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This is only going to get worse and clearly Bush isn't doing anything to fix it. More countries continue to cash in their bonds and more investors are refusing to buy new bonds; this can easliy become a disaster.
 
Innervision961 said:
Who didn't see this coming, no matter how much we try and hammer this through the thick heads of our fellow countrymen, they will not see it until it smacks them in the face.

http://www.washtimes.com/upi-breaking/20050222-101328-6410r.htm
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What is "it"?

A weak dollar isn't all bad. A weak dollar encourages foreign investment and decreases the trade deficit, increasing out GDP as a result.
 
So your saying the selling of bonds and investors dumping the dollar and switching teams is a good thing? Your blind.... WAKE UP
 
Quote where I said that.

All I did was make the observation that a weak dollar isn't all bad.
 
All I did was make the observation that a weak dollar isn't all bad.
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Ouh... I disagree... it's not that useful to the world market... well, at least not ours. With the Dow Jones our figures fall also...
 
Wow, who'd have foreseen the rise of the Euro at the time time?

Ahem
 
Recoil said:
Ouh... I disagree... it's not that useful to the world market... well, at least not ours. With the Dow Jones our figures fall also...
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So decreasing the trade deficit is bad? Increasing our GDP is bad? Foreign investment is bad?

Not that useful to the world market? Ok, fine, but if we are so concerned about the world, why does innervision bring it up?
 
Bodacious, you'd rather the dollar was up, right? :|
 
Both articles say that the dollar going down is bad long-term. And one says that it's good to invest abroad right now.

Seriously, you'd rather it was up, huh.
 
Bodacious said:
How about this:

Asian Banks 'will not dump any dollars'
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quote from article:
But analysts questioned the appetite for funding a US current account deficit of $2bn a day, 83 per cent of which was financed by central banks in 2003.

“Nobody is suggesting [central banks] sell dollars, but all they have to do is buy fewer dollars and that will put downward pressure on the dollar,” said Tony Norfield, global head of foreign exchange strategy at ABN Amro.
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you just proved our point.

Only looking at asia is not enough you need to include other parts of the world, although asia is the most important for you.

Like I said asia is very important, they buy from you a lot and you from them, therefore they need a lot of doallrs, and wil hold on to them even if they are worth shit.

And finally, a weak dollar aint that bad, cause it makes your shit cheaper, and ours more exensive, which is good for economic growth, but a falling and ceratinly a constantly faliing dollar is bad, becasue it means that a lot of people don't want it, and since you need it to buy stuff from you it meens you are exporting to little and your economy is ****ed up, so it is bad.
 
A strong dollar can be a bad thing. Here in Canada there is a lot of concern that if the CAD doesn't start to drop and the USD doesn't start to rise, it could have long lasting economic repercussions. Already the CAD rising to $0.80 US has caused many factories to close etc. The Canadian economy cannot support it over a long period of time. From what I have read, experts seem to agree that a $0.66 US CAD is best for the economy.

So as many have pointed out before, a strong dollar isn't nessicarily a good thing. In fact I think previously the USD was overvalued and needed to drop a bit. In fact the Fed's encouraged it. That doesn't mitigate the danger it now faces of being devalued, but it does put it in perspective.

Biggest secret in economics right now is the fact that the US economy is actually in very good shape. Which should make everyone happy becuase most of the world is tied into the US market.
 
GhostFox said:
A strong dollar can be a bad thing. Here in Canada there is a lot of concern that if the CAD doesn't start to drop and the USD doesn't start to rise, it could have long lasting economic repercussions. Already the CAD rising to $0.80 US has caused many factories to close etc. The Canadian economy cannot support it over a long period of time. From what I have read, experts seem to agree that a $0.66 US CAD is best for the economy.

So as many have pointed out before, a strong dollar isn't nessicarily a good thing. In fact I think previously the USD was overvalued and needed to drop a bit. In fact the Fed's encouraged it. That doesn't mitigate the danger it now faces of being devalued, but it does put it in perspective.

Biggest secret in economics right now is the fact that the US economy is actually in very good shape. Which should make everyone happy becuase most of the world is tied into the US market.
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Hvae you paid any attention to the thread above yours,
a weak dollar= can be good
a falling dollar= always bad
that the dollar keeps falling means that your economy is not in a vey good condition, it means that it is in a shit condition, a really shit condition they way it is now, the strengt and stability of the currency of a country shows the streng of it's economy, if the economy is doing better then the dollar will rise, since the dollar is falling it means your econmy is going to hell, now how can that be so hard to understand.
further more you are draging the rest of the world with you.
 
hopefully for the US economies sake atleast, the bush administrations middle east oil cash in, and caspian sea pipeline will stabalise the dollar in the coming years, dont know how exactley, but it could make petrol cheaper, if that has any influence.
 
Is this guy really trying to defend the dollar being down? Holy crap, partisan politics at its best.

The dollar dropping is never a good thing and never has been, its as simple as that.
 
Grey Fox said:
Only looking at asia is not enough you need to include other parts of the world, although asia is the most important for you.
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Why are you telling me? My response was to innervision, he is the one so concerned abou asia.


...but a falling and ceratinly a constantly faliing dollar is bad, becasue it means that a lot of people don't want it, and since you need it to buy stuff from you it meens you are exporting to little and your economy is ****ed up, so it is bad.
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I would think the dollar has a long way to fall before we start seeing any adverse effects.
 
I thought I would take you two, jondyfun and no limit, off ignore to see what you had to say and just as I thought, what you said wasn't worth reading, just more misinterpritation of what I said based on preconceived notions due to my previous posts.

Pardon me for making observations. They sky isn't falling because the dollar is weak. Everything has it's ups and downs and the dollar isn't anything special in regards to that. All I did was bring to light the other side of something that is negative and all I get is greif from other posters. Partisan politics indeed.
 
Bodacious said:
I thought I would take you two, jondyfun and no limit, off ignore to see what you had to say and just as I thought, what you said wasn't worth reading, just more misinterpritation of what I said based on preconceived notions due to my previous posts.

Pardon me for making observations. They sky isn't falling because the dollar is weak. Everything has it's ups and downs and the dollar isn't anything special in regards to that. All I did was bring to light the other side of something that is negative and all I get is greif from other posters. Partisan politics indeed.
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Ah, you show you face. From your own CNN source (which is an opinion BTW):

Or to be more precise, while a continuously falling dollar is bad, a low dollar is good -- for the moment.

The plain fact is that the current U.S. budget deficit is unsustainable for more than a few years. In fact, the weak dollar will likely become a serious problem within the term of this Administration, unless President Bush does begin cutting the deficit, as he repeatedly insists he will.
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look at this chart:

http://futures.tradingcharts.com/hist_US.html

the dollar has been falling since late 2001; this is not a short decline that can stimulate an economy.

Your second source dealt with investing; not with the overall economy and what this does to it.

What is happening today is our deficit keeps growing, inflation keeps growing, and oversea markets are dumping US bonds while not buying new ones. Again, there is absolutely nothing good that will come out of this.
 
wow, almost $2 to every pound haha cool for us brits who fancy getting stuff on the cheap now :E
 
I know, its funny, even when I show positives, they are still bad. Partisan politics indeed.
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How is that partisan politics? Your statement was factually incorrect. The Canadian economy depends on a low dollar. As far as other economies, while a weak dollar over a long period can be detrimental, short term a falling dollar can have many economic benifits, as long as the descent is controlled.
 
The Dark Elf said:
wow, almost $2 to every pound haha cool for us brits who fancy getting stuff on the cheap now :E
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I know, it's f'kin great, I have a new photog set-up for like half-price :)

Nice of you to take time out of your busy schedule, Bodacious, to take me offof 'ignore' :D. Yup, you're right, there are some good short-term effects of a low dollar.

In a long-term context, however, if these problems don't go away it isn't going to be an easy ride over at Wall Street :) Course, I'll be sitting pretty with cheap imported electronics, so I don't really give a damn :D
 
One dollar is apparently only worth 6 SEK (swedish kronor or 'crowns') as opposed to 11 like it was before, which means people here think about spending lots of money on american stuff. :)
 
Same thing happend when the pound went up from the dollar, I think it was something like 1.93 dollars for every pound.

I suppose that's one benefit in a short term currency lapse, your Businesses get more foreign consumer trade.
 
buy them out :D. before the US tycoons take over all of Birtains company's, like what happened to Asda .
 
I still don't see how investors losing trust in the dollar can be a good thing, Bodacious, do you realise just how much of our economy is owned by asia? Namely China?

Sure I don't deny that there may be short time positives, but in the long rong a constantly decending dollar, and constantly uprising inflation etc is not a positive.
 
clarky003 said:
buy them out :D. before the US tycoons take over all of Birtains company's, like what happened to Asda .
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Yeah, that ASDA thing takes the piss, Wal-Mart should keep its shit on just the one continent
 
Innervision961 said:
I still don't see how investors losing trust in the dollar can be a good thing,
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Never once have I argued that it was a good thing. I defy you to quote where I said anything of the sort. All I did was make the observation that there are positives to a weak dollar.

Sure I don't deny that there may be short time positives, but in the long rong a constantly decending dollar, and constantly uprising inflation etc is not a positive.
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I don't deny that either. I defy you to quote where I have said anything of the sort.
 
its not that you said it straight out, your spiining this, and i don't understand how or why
 
Never once have I argued that it was a good thing. I defy you to quote where I said anything of the sort. All I did was make the observation that there are positives to a weak dollar.
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:rolleyes: :rolleyes: :rolleyes:
 
CrazyHarij said:
One dollar is apparently only worth 6 SEK (swedish kronor or 'crowns') as opposed to 11 like it was before, which means people here think about spending lots of money on american stuff. :)
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Last time I checked it was 7 SEK, which was about the highest in 3 months, so it isn't falling steadily, but still, it's a huge fall, but that's also beacause of a strong crown.
 
Innervision961 said:
its not that you said it straight out, your spiining this, and i don't understand how or why
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Oh, so everything you accused me of saying is something you interpreted and made assumptions about? Ok,
 
Bodacious said:
Oh, so everything you accused me of saying is something you interpreted and made assumptions about? Ok,
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Please stop this crap; you were clearly trying to defend the dollar dropping. It's posts like that that cause threads to be locked.
 
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