The weak dollar, by making U.S. goods more competitive overseas,
will sow the seeds of future growth through booming exports, more
domestic jobs and a new surge in investment from overseas to snap
up bargains in the U.S.
That's not a cause for concern, but of celebration.
Well, it sure makes me feel better knowing that the dollar is still a better deal than the Vietnamese piaster.
Big Mac's?
Seriously.
What you'll really see is that those "partners" have been pegging their currencies to the dollar on a temporary basis, China for industrialization and Arab countries for political reasons. The result has been increasing inflation in those countries as they print more and more of their currency to keep up with the plunging dollar. Now that is coming to an end, not overnight, but inevitably.
ping
He has the cause and effect relationship backwards. We are seeing less investment because out currency is declining in value.
The decline of the dollar is a positive thing and relatively speaking is not out of the ordinary just like our soaring defecit is not at a record amount when compared to a percentage of overall GDP.
I so much hate conventional wisdom, because well it is so conventional.
I would agree to a point with this article and in the end believe our greatest fear should be not the dollar failing, but the tides of socialism sweeping across America. That is what investors will be looking for. Have any idea how many big corporations and individual investors invested the great USSR? We elect a democrat and implement any of there socialist ideas and then you’ll see “big” money flee from the US. Then we’re in real trouble. These fluxuations in the dollar don’t concern me too much, they’ve been there before. What does concern me is the devalued dollar coupled with socialist policies. When and if that occurs (i.e. Hillary, Edwards, Obama), then we’re in trouble.
It wouldn’t surprise me if some of our seasonal Canadian Snowbirds step into the local real estate market, and actually buy that condo or second home they’ve dreamed about for years.
They come by the carloads and busloads to play the slots and shop at Wally World, Sam's Club, Target and Home Depot. I've never seen so many Canucks in ten years living here.
That's it folks, leave your dough and get out!
By the way, if you're driving behind one and they put on a turn signal, be careful. New Brunswick drivers have a bad habit of making a false move in the opposite direction, so they can make a nice w i d e turn...
What a load of crap. The best condition is a dollar that is fairly stable, not overly strong or weak, both domestically and on the foreign exchange market.
If they run that chart back to the 1960's, or even back to the 1930's one can see the dollar collapsed and never recovered, so anybody regardless of their position can make a case depending on the time period chosen.
Why people, especially politicians have such a fondness for exports, I don't know. Perhaps there is a genetic bias for mercantilism. Even countries that are known as big exporters like Japan, have an export market that is a little over 10%. Doing something that's good for exports only ignores the other 90% of the economy. When one subtracts out the negative effects on imports (higher prices), the economic impact is nil, or negative for a country like America.
Articles like this are making apologies for one of the worst economic presidents we've had, though one of the luckiest. If it weren't for congressman Bill Thomas saving his butt in 2003, he never would have won a second term.
It’s a commodity and like all commodities it will rise and fall based on a variety of world wide factors.
There is one thing I feel comfortable saying though and that is that for the foreseeable future the dollar will be the currency of last resort if and when the sh*t truly hits the fan.
Bush has been beset with a lot of economic challenges not of his own making, like the recession he inherited, the corporate accounting scandal perpetrated on the Clinton watch, 911, the war, high oil prices, Florida hurricanes, and then Katrina, and drought. He’s also had the subprime mess to deal with, and the credit squeeze.
Despite all this, he inherited a bad economy, made it into a good economy, and has kept it going. One of the main reasons his policy has worked is that he’s let the markets do the heavy lifting. He’s resisted the Dem-preferred approach to manipulate oil prices, and run the economy by bureaucratic fiat. The markets have made the necessary adjustments, and that has kept us out of recession.
it’s called a “cycle”
It all depends on wether a conservative (fact driven) or liberal (agenda driven) is describing it.
EADS's Airbus plans radical measures to respond to strong euro - FORBES 11.22.07
FRANKFURT (Thomson Financial) - EADS's Airbus unit plans radical measures to respond to the weakness of the US dollar, chief executive Thomas Enders told a workers council today in Hamburg, the website of Der Spiegel reported, citing attendees of the meeting.
Enders said the decline of the dollar has passed the 'pain barrier'.
'That is life-threatening,' Enders was quoted as saying.
He said Airbus is expecting 'massive losses' due to the weak dollar.
Airbus's current restructuring program 'Power 8' is based on a rate of 1.35 usd per euro.
The euro traded at 1.48 usd in London noon trade today.
Airbus said in late September that the company needs to find an additional one billion euro in savings if the euro stands at 1.45 dollar to achieve the 'Power 8' target of 2 bln eur savings per year by 2010.
Enders said the European plane maker will decide over the coming weeks which cost -cutting measures will be taken.
'We need to question our business model. It is no longer sustainable,' he said, according to the report.
He also said Airbus will increasingly consider outsourcing production.
Airbus's parent company EADS on Nov 8 posted a third-quarter loss of 776 mln eur, widening from a loss of 189 mln a year earlier.
The strong remarks from Enders come three days after EADS's chief executive Louis Gallois said in an interview with the Financial Times that the weak dollar is a 'sword of Damocles hanging over our heads' and said it is his main concern for the future.
Gallois said EADS's corporate strategy 'Vision 2020' targets US acquisitions to reduce the company's exposure to the weak dollar.
Enders himself said in mid-October that Airbus will not rush into more cost-cutting measures in light of the weak dollar.
Ghost of America’s future, I fear thee most of all. Or put another way “It’s the inflation, stupid.”
bttt
http://hpj.com/archives/2004/aug04/aug23/Japantoraisetariffsonporkim.CFM
Japan to raise tariffs on pork imports
TOKYO (AP)—Japan will hike tariffs on pork products to curb a sharp increase in imports and protect domestic producers, the government said July 29.
Tariff increases averaging 25 percent will be imposed over the eight-month period beginning Aug. 1 through March 31 next year, Agriculture Ministry official Yuichiro Watanabe said.
The hike was a result of a sharp rise in imports from major exporters including the United States, Canada and the European Union, during the April-June quarter, Watanabe said.
The increase is the fourth since 2001, he said.
The step is allowed under WTO rules that say Japan can impose emergency tariffs when quarterly imports exceed 19 percent or more of the average amount imported for the same period during the previous three years...
___________________________
under WTO rules, what?
American pork must be more efficient cause of free-trade. Our pigs are bodybuilders cause of free-trade. Actually fat is good. Our pigs are orka fat cause of free-trade. Our pigs are the size of cows cause of free-trade. Our pigs are genetically superior to Japanese pigs cause of free-trade. Actually its not free-trade it is unilateral suicide.
How does this stuff work at the WTO? Japan raises tariffs on pork so the US gets 10 dollars in monopoly money to raise tariffs somewhere else, or does someone just flip a coin.
Excellent chart. The dollar was at it highest against the Euro during the last economic recession.
Yes, the real collapse is yet to come, as all this “keeping us afloat” ends.