Posted on 05/13/2006 12:52:27 AM PDT by wotan
The US dollar suffered a severe sell-off on Friday, taking it to its weakest level against a trade-weighted basket of currencies since October 1997, as fears about the US current account deficit crossed world markets.
Worries about US inflation, which have intensified since this week's meeting of the US Federal Reserve's rate-setting open market committee on Wednesday, sparked further sharp losses for US stock markets. The Nasdaq Composite fell a further 1 per cent in morning trading after its 2 per cent fall on Thursday.
(Excerpt) Read more at msnbc.msn.com ...
I was still able to spend my dollar at the store today. So what's the problem?
MSNBC has never seen a silver lining without a cloud
Actually there is absolutely no problem at all.
A weak dollar makes American goods more competitive internationally.
A weak dollar makes America a more attractive tourist destination
of course:
A weak dollar makes US bonds more unattractive and will likely cause interest rates to rise
A weak dollar also means Americans may pay a premium for oil in comparison to other nations - but that is more complicated.
Unfortunately, the U.S. economy is now managed via MAD MAGAZINE's ALFRED E. NEUMANN! The central theme is "WHAT ME WORRY?"...
We are very fortunate that foreign producers will accept our pieces of paper in exchange for their production. However, an increasing number of these folks are beginning to recognize that they are being short-changed! Look for this trend to build as the dollar depreciates to levels which will reflect its true value (a paper sanitary wipe).
The reason why China invests it's money here is because were are a sure bet. I remember reading a story about Pat (America is doomed) Buchanan approaching Ronald Reagan about the Japanese buying up our Banks and massive amount of real estate here in the U.S.
After hearing Pat (the death of the West) Buchanan was finished expressing his deeply felt fears to Ronald Maximus, Ronald Reagan kicked his head back in his usual way and said through a smile... "Well Pat, I guess the Japanese know a good investment when they see one"
Listening to John Stossel tonight, and I must agree with him, high gas prices in this country is not a bad thing. Like he said, think of the lives that will be saved?
I don't disagree with that at all. A real leader would begin a program to declare American independence from foreign oil. With sacrifices all around: including drilling in currently off-limit places and incentives to switch to alternatives. Energy prices would go up and stay up, but America and the world would be better off for it.
Of course that price of gasoline while intricately linked with the price of oil, is still not one and the same.
Like he said, think of the lives that will be saved?
Think of how much more it'll cost to get a can of soup on the supermarket shelves.
Stossel is a moron.
I don't agree. Why would America be better off? Because of the Al Gore doom and gloom scenario? If we weren't burning oil products today, tell me, how would that make my life better off?
I love it!
The USD has lost 7.5% of its value in the past 30 days.
Many people on FR decry "academics" as no-real-world-experience eggheads.
This guy Bernanke is a prime example, and I am concerned he's twice the pumper Greenspan was. This guy, IMO, is going to do some serious damage.
Media stunned by strength of US economy and astounded by increase in US exports. Fears of Tsunami caused by the tears of mourning liberals grows...
Everyone has their own perspective and guaranteed everyone is not going to agree. I already hearing the crying in the news about how much more it costs for people to go to work. Can you see my tears? NOT! Too many want their cake and eat it too. Time to get back to reality and quit living in a dream world. It is called Priorities. Something that hasn't been taught in schools for so long that many today don't know the meaning.
What matters most is the broader M2 money supply.
Too many want their cake and eat it too.
That cake must might get a whole lot more expensive.
must =just
Stossel is a Libertarian :-)
At least 50% of the petroleum products you are burning are coming from outside your own country. Much of that oil is from the Middle East. Governments get the majority of the revenues through oil. The Middle Eastern citizens and governments are financing the terrorists. Your oil purchases are helping to finance the terrorists.
The United States through greater energy production at home, the embracing of alternative energy sources and conservation measure could be energy self-sufficient.
Farmers in the Midwest could grow most of Americas liquid fuel needs.
Your money would then go to American farmers. the push to alternatives would make America more free and independent as well as create exportable technologies. Moreover, it would eliminate the need to continue playing the very dangerous global game for resources which is happening with China and India.
Maybe you can explain to me how reliance on foreign sources of energy from hostile nations is good for American?
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