why is the dollar dropping?

[BlahBlahYouToo]

we lower our interest rates. foreign investors no longer want to invest in US bonds & american business so they sell/exchange their dollars which increases the supply and further decreases the value.

now our products are cheaper relative to foreign currency, which causes the demand to go up. in order to buy our products, they need our dollars again which causes the supply to decrease and the value to come back up.

shouldn't there be some sort of equilibrium?

 

[Anubis]

because of the houseing market sub prime BS

 

[JulesMaximus]

Because George Bush hates black people.

 

[E equals MC2]

Isn't this also a good thing?

Because now the euro and pound is double and triple the worth in USD, tens of thousands of Europeans are visiting US JUST TO SHOP.

There was a big coverage on nbc. Once we hold all those foreign dollars then our dollars become strong, then we'll be filthy rich!

 

[Kadarin]

You're assuming that the US still makes products. Everything's made in China with lead paint, now...

 

[dainthomas]

Originally posted by: JulesMaximus
Because George Bush hates black people.

Bush isn't a racist! He just hates poor people.

 

[ElFenix]

Originally posted by: BlahBlahYouToo

shouldn't there be some sort of equilibrium?

yes there is. have we reached it? probably not. it takes a while for there to be goods for others to demand, after all.

 

[E equals MC2]

Originally posted by: dainthomas

Originally posted by: JulesMaximus
Because George Bush hates black people.

Bush isn't a racist! He just hates poor people.

but who doesn't hate poor ppl? I do.

 

[JS80]

IT'S CYCLICAL

Word on the street is Euro should be on downtrend.

 

[FoBoT]

the coming recession

 

[lozina]

oh... it's too bad America doesn't actually produce anything to export anymore- doh!

 

[lozina]

Originally posted by: JS80
IT'S CYCLICAL

Word on the street is Euro should be on downtrend.

How can it be cyclical? Can you point to the last time the USDX was at this level?

 

[Tempered81]

Originally posted by: JulesMaximus
Because George Bush hates black people.

hahahah

 

[Tempered81]

some aspects of the dollars decreasing value are good. buy euros, hope for it to go back up, exchange later. Usa exporters are doing well. but for the most part it sucks.

 

[upsciLLion]

Supply is up and/or demand is down! Duh!

 

[LegendKiller]

Originally posted by: lozina
oh... it's too bad America doesn't actually produce anything to export anymore- doh!

LOL. Goods and services.

 

[ElFenix]

Originally posted by: lozina

Originally posted by: JS80
IT'S CYCLICAL

Word on the street is Euro should be on downtrend.

How can it be cyclical? Can you point to the last time the USDX was at this level?

1976 the US$ and CA$ were at parity.

 

[SSSnail]

Gravity.

 

[chin311]

ugh ive gotten myself into a news/media/internet cycle of following all the economy news , currency news etc etc and its making my head implode

all doom and gloom really gets me down

 

[Miramonti]

nm

 

[meltdown75]

because i punched it in the face.

 

[JS80]

Originally posted by: lozina

Originally posted by: JS80
IT'S CYCLICAL

Word on the street is Euro should be on downtrend.

How can it be cyclical? Can you point to the last time the USDX was at this level?

Currently we're sending more dollars overseas than receiving it. That can't happen forever. Foreign holders of dollars will bring it back to US either as purchase of goods or investment.

 

[nakedfrog]

Originally posted by: meltdown75
because i punched it in the face.

That's hardcore, dawg. You show that economy who's the boss!

 

[meltdown75]

Originally posted by: nakedfrog

Originally posted by: meltdown75
because i punched it in the face.

That's hardcore, dawg. You show that economy who's the boss!

we were guests on Springer.

 

[moshquerade]

Originally posted by: meltdown75

Originally posted by: nakedfrog

Originally posted by: meltdown75
because i punched it in the face.

That's hardcore, dawg. You show that economy who's the boss!

we were guests on Springer.

you guys crack me up.

side note: it's nice being able to use those Canadian quarters i somehow acquire. it used to be merchants wouldn't accept them.