Posted on 11/07/2007 8:24:29 AM PST by SubGeniusX
Actually, the higher the Canuck buck, the more goods they buy from America...
I just picked up a nice bonus due to the influx of business because the US dollar is low...
Yes it is! Free-floating currencies are an abomination! How can we ever withstand the blow to our collective ego!
Bernake’s two rate cuts didn’t help.
Exactly, a cheap dollar means our exports are now less expensive to purchase.
It does seem strange to see the Dollar worth less money then the Canadian Dollar though.
What is new about this. It was like this in the early 70’s. reminds me of when I was stationed in Germany. The Mark was 4:1. No one there looked starved, the stores were booming with shoppers and there was pleanty of food in the markets. Life goes on.
too bad the hollywood writers went on strike, there are many jokes to be had of this
“It does seem strange to see the Dollar worth less money then the Canadian Dollar though.”
Not really, I’ve liven here in the USA since March of 2000... the US dollar has been eroding for a while now...
Just glad I paid off our Canadian Student loans last year, otherwise I’d been in deep poop now!
Doesn’t common sense tell us it’s not quite that simple? If it was, why has Bush promoted the so-called strong dollar policy? Why don’t we just push the dollar down another 50%? The answer is that while what you say is true, there are also negatives to a falling dollar. For example, China & Japan have about $2 trillion of USD denominated reserves, held mainly in US Treasuries. Do we really think they are going to sit there and watch the real value of their holdings decline w/o taking any kind of action? As they diversify out of USDs, what do you think will happen to interest rates? What’s to stop a downward spiral where diversification out of the USD pushes the USD down further causeing further diversification out of the dollar?
Indeed! Good thing to as you would hve lost .10 cents on every dollar..lol!
The only thing that can stop a dramatic decline is either Budgetary Discipline in DC...(BWAHAAGGAA..cough cough..)
Or Banks and the Treasury or Fed can buy up dollars propping up support for it, a weak dollar is double edged sword indeed, Japan and China can now buy US assets for half price now.
Conspiracy Theory #1:
The gov’t is deliberately allowing the dollar to fall. Once it gets below the Peso then the President will declare it worthless and we’ll switch to the Amero.
Discuss.
Unfortunate for those of us that are in jobs that do not produce anything.
That’s an advantage; there are disadvantages too. Ultimately a weak dollar is not good.
Strange conspriracy kind of theory, but may not be too far from the big plan. Maybe that is the untold story of immigration reform. Get the dollar so low Mexicans will WANT to move back to Mexico for higher wages.
Had a purchasing manager from a large Canadian firm call me last week - wanted to know how fast he could resource almost all of his non-US purchases south of the border. Hurt my ego terribly.
You’ll get over it, I hope. :)
What difference does that make?
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