Good post!
Hmmm......ok......so why is the price of gold at about $800 / oz?
Why is the price of oil at about $90?
Where’s M3?
Me thinks they doth protest a bit too much.
Weak Dollar = Higher exports.........Our company has suddenly gotten loads of inquiries from overseas companies for quotes on new equipment...........Coincidence?......I think not!............
Good article. It seems that the sky isn’t falling thanks to the weaker dollar. Manufacturing is coming back too, which is good for national security.
IMHO, there’s no question that floating exchange rates are a necessity in a global economy. In that sense, a lower dollar is “better” than one pegged at an artificially high level.
However, don’t be lulled into thinking that a lower dollar is any sort of panacea. It isn’t. For one thing, a lower dollar leads to less capital investment (because labour is now cheaper) — which, in turn leads to lower productivity — and lower productivity leads to a lower dollar. It’s too easy to be sucked into a vortex of decline.
Ping for later.
Good post, that weaker dollar is one of the reasons that the local news has been reporting on all of the foreigners shopping here.
I would also bet dollars to donuts, that it is American Businessmen, that are buying up the Euros, driving up the price of them, and making it easier for them to sell their products overseas. Win-Win situation, as long as we can keep the dollar strong against good and services here.
Well, sure, some importers and merchants will need to tighten their belts and adjust their service economy talents toward serving newer domestic technological companies. Some changes in progress aren’t going to reverse without terrible consequences. Speaking of consequences, the lower dollar and higher oil are consequences of our business leaders’ movement to put their manufacturing in foreign countries. The currency and commodity trends can’t be reversed now without instigating big wars. We’ll have to live with the trend toward being less anti-American and toward manufacturing more here, in the USA.
The tide comes in, the tide goes out ... and still you catch fish.
“er,uh yea that’s what we are running with O.K.?”
Yes the weak dollar is doing somebody some good. But the average Joe is still putting up with a loss of buying power greater than 3%. The fact that Vincente Fox let it slip on CNN’s Larry King that the “plan” is to have a single currency between Canada, Mexico and the USA doesn’t seem to register with too many folks who are too busy just trying to keep up. But the dollar’s days are numbered. Things are not permanent.