Anyone notice the exchange rate of us$ drops rapidly recently ?

[jimmyhaha]

Anyone notice the exchange rate of us$ drops rapidly recently ?

hmm.... sign for economy recovery or it's just like every time b4 presidential election ?

 

[PoPPeR]

we were talking about this in my macroeconomics class today

I had no idea what she was talking about. And I have no idea what you're talking about.

 

[jimmyhaha]

we were talking about this in my macroeconomics class today

I had no idea what she was talking about. And I have no idea what you're talking about.

<- weak...

 

[KGB1]

China and Japan were forced to stop manipulating their currency. For decades they have kept it lower so they can have an advantage in trading. The 7 Largest Countries (including US) had made them release the real currency value and... well it backfired. The Chinese, Japanese currency is REALLY strong and made the once "mighty" dollar look weak.

LOL I mentioned it in my Micro Economics class today also. Dumb American's... mess with China's currency level and we lost value. LOL... really it is funny...

 

[jimmyhaha]

LOL I mentioned it in my Micro Economics class today also. Dumb American's... mess with China's currency level and we lost value. LOL... really it is funny...

lol.. but weak US$ should be good for US export, thus decrease the trade deficit and improve the weak economy ?

 

[Ladies Man]

Originally posted by: jimmyhaha

LOL I mentioned it in my Micro Economics class today also. Dumb American's... mess with China's currency level and we lost value. LOL... really it is funny...

lol.. but weak US$ should be good for US export, thus decrease the trade deficit and improve the weak economy ?

in theory yes

otherside of it is US businesses now lose more money when they import stuff though, and last i checked anything you buy has something from china or japan in it.

 

[KGB1]

Originally posted by: jimmyhaha

LOL I mentioned it in my Micro Economics class today also. Dumb American's... mess with China's currency level and we lost value. LOL... really it is funny...

lol.. but weak US$ should be good for US export, thus decrease the trade deficit and improve the weak economy ?

True, but you must understand, the US is a consumer based society. We depend primarily on foreign goods to support ourselves. It actually costs more to pay for the same thing now than last week. We produce, but not at a rate to support ourselves and foreign goods are sometimes (usually) cheaper than American made products

We do not export at the rate we import. (also due to the fact that others nations don't like American made products, not all but some) With the WTO, Nafta, almost tarrifless trade with asian nations, America is going to really be in a bind. Greed has lead the US in this direction....


/Going to change currency into Euro

 

[isaacmacdonald]

ehh... don't u worry. the cool thing about being the US is that assloads of foreign debt and reserves are denominated in USD so the worlds creditors (the first world countries) have a vested interest in preventing a giant slide in the value of the USD for the sake of investment and generally preserving the liquidity of the world financial markets.

 

[Miramonti]

Originally posted by: KGB

Originally posted by: jimmyhaha

LOL I mentioned it in my Micro Economics class today also. Dumb American's... mess with China's currency level and we lost value. LOL... really it is funny...

lol.. but weak US$ should be good for US export, thus decrease the trade deficit and improve the weak economy ?

True, but you must understand, the US is a consumer based society. We depend primarily on foreign goods to support ourselves. It actually costs more to pay for the same thing now than last week. We produce, but not at a rate to support ourselves and foreign goods are sometimes (usually) cheaper than American made products We do not export at the rate we import. (also due to the fact that others nations don't like American made products, not all but some) With the WTO, Nafta, almost tarrifless trade with asian nations, America is going to really be in a bind. Greed has lead the US in this direction.... /Going to change currency into Euro

the euro is where its at. aint seen nothin yet.

 

[ElFenix]

the change in value favors the US exporting more, and its not like capital can't be moved really easily or something. the currency manipulation had to come back eventually anyway. which way did you really expect it to move with the huge surpluses japan does? this is adam smith's exchange rate redux.

 

[DeeKnow]

all the recent action has been a direct result of the comments issued at the recent G7 meeting ... i wouldn't say anyone 'made' China and Japan stop doing what they have always done, but that is indeed what it seems they will do.

besides, there has been a noticeable (although unsaid) abandonment of the official strong $ policy. add to that the fact that the Iraq adventure is costing about 4B a month and doesn't look like it will end for a few years at least and you have the makings of $1.20 or even $1.25 Euro ....

 

[Eli]

Originally posted by: DeeKnow
all the recent action has been a direct result of the comments issued at the recent G7 meeting ... i wouldn't say anyone 'made' China and Japan stop doing what they have always done, but that is indeed what it seems they will do.

besides, there has been a noticeable (although unsaid) abandonment of the official strong $ policy. add to that the fact that the Iraq adventure is costing about 4B a month and doesn't look like it will end for a few years at least and you have the makings of $1.20 or even $1.25 Euro ....

4B a month? :Q

links?

 

[Tetsuo]

w00t, now maybe sometime soon the Canadian Dollar and the American Dollar will be the same

 

[DeeKnow]

Eli

there's about a hundred stories out on Yahoo and Google News about the 87B Bush has requested for the ongoing wars in Iraq and Afghanistan

here's just one link from USA Today... search on Google for many more