The US Government is letting the dollar fall against the Canadian Dollar just to ruin my vacation in Canada. I know it...
US dollar is getting pounded
- Thread starter Malibook
- Start date
Devaluation to head off deflation, very risky business, at best.
Another suggestion on making $$$$:
http://money.cnn.com/2004/12/07/markets/investing_weakdollar/index.htm
http://money.cnn.com/2002/06/03/markets/dollar_winners/
Another suggestion on making $$$$:
http://money.cnn.com/2004/12/07/markets/investing_weakdollar/index.htm
http://money.cnn.com/2002/06/03/markets/dollar_winners/
Boy what a difference living south of the Boarder brings. Canada will hold off on raising rates as it is being hurt by its strong dollar.
The US will hold off on rates as our growth is so low. New jobs creation is below the monthly need for jobs due to population growth - about 150,000/ month.
The US deficits do damage to the US' long term prospects as the world's reserve currency. The pound retained it influence 40 years after Britain lost it commercial leadership. It will take time and depends on how other countries do in comparison over time. The US population growth is strong enough (Europe's is well below replacement) that we at least have some prospect - if we cut our deficits - of being able to pay off our public debt. Unfortunatly, no one is really accounting for the fact that, like Japan, we have been pushing debt onto state and local governements (hiding it) ever since Regan.
With all your natural resources and good budget policies recently, you currency should remain a good investment - AS LONG AS you do not let everything become priced in dollars. You really need to stop the practice of pricing your internal contracts and services in dollars.
The US will hold off on rates as our growth is so low. New jobs creation is below the monthly need for jobs due to population growth - about 150,000/ month.
The US deficits do damage to the US' long term prospects as the world's reserve currency. The pound retained it influence 40 years after Britain lost it commercial leadership. It will take time and depends on how other countries do in comparison over time. The US population growth is strong enough (Europe's is well below replacement) that we at least have some prospect - if we cut our deficits - of being able to pay off our public debt. Unfortunatly, no one is really accounting for the fact that, like Japan, we have been pushing debt onto state and local governements (hiding it) ever since Regan.
With all your natural resources and good budget policies recently, you currency should remain a good investment - AS LONG AS you do not let everything become priced in dollars. You really need to stop the practice of pricing your internal contracts and services in dollars.
Even drug dealers are giving up on the dollar.
Even drug dealers are giving up on the dollar.
By Daniel Gross
Posted Tuesday, Dec. 28, 2004, at 3:20 PM PT
The dollar's decline against the euro shows no sign of ending. Clearly, currency traders have made a long-term judgment about the relative value of the currencies of the Old and New Worlds. That sounds bad enough. But now there are signs that we're losing some of the most devoted fans of the greenback: drug dealers, Russian oligarchs, and black-market traffickers of all kinds.
James Grant, of Grant's Interest Rate Observer, whose animadversions about the dollar and other subjects are as droll as they are pricey, highlighted the latest indignities to befall the once-mighty dollar in his Dec. 17 issue. (Alas, it's not available on the Web.)
People the world over—central banks, companies, and individuals—like to hold the dollar. It's stable, liquid, easily convertible, and never goes out of style. The dollar is popular in the official global economy—the money that changes hands through computer terminals, checks, and wire transfers. But it has also been extremely popular in the world's vast cash economy. For American tourists, Chinese smugglers, Ukrainian arms dealers, and African dictators, the dollar has long been the currency of choice. The fearful and shady, those who subsist on tourism, and residents of countries with unstable domestic currencies love the greenback. Citing Federal Reserve estimates, Grant writes that "between 55% and 70% of the $703 billion of U.S. currency outstanding circulates outside the 50 states."
The United States benefits greatly from the fact that the dollar is the world's reserve currency. Many of the $100 bills circulating throughout the globe are essentially loans that we never have to pay back. Americans use them to buy goods, services, or other currencies. But many of those bills never return to our shores to be redeemed for anything we make or produce. Instead, they stay under mattresses in Bogotá, circulate in Iraq, and are stashed in bank accounts around the world.
But among a subset of global cash connoisseurs, the dollar is losing ground to the euro—and it has nothing to do with concerns over U.S. multilateralism. First, the euro zone has been expanding with the addition of new countries and the continued integration between Eastern and Western Europe. So there are simply more people who accept and use euros now. Since 2002, the growth rate of euros in circulation has far outpaced that of dollars. Add in the euro's recent strength against the dollar, and the case for Eastern Europeans and euro-neighbors to use euros becomes more compelling. In the 1990s, the dollar was remarkably popular in Russia, where residents had long been deprived of coveted Western imports. But between January 2002 and August 2004, Grant notes, the percentage of private Russian currency transactions employing the dollar fell from 94.1 percent to 84 percent while the euro's share rose from nothing to about 15 percent.
Finally, in the past two years, euros have also become easier to carry, store, and hide than dollars. Generally, the largest denomination of U.S. currency readily available is the $100 bill. But in the past two years, the European Central Bank has started to print 200-euro and 500-euro bills. These larger bills thus allow for the concentration of wealth in smaller packages. At today's rates, a 500-euro note is worth $682.
So if you wanted to, say, hide cash by swallowing it temporarily, euros would the obvious (and more comfortable) way to go. And indeed, as Grant notes, in October a drug mule traveling from Spain to Colombia was found to have an unexpected form of contraband in his stomach: $197,000 in euro notes. The same month, Fidel Castro declared that the dollar, which is tolerated as a means for Cuban-Americans to support their relatives in Cuba, was officially currency non grata and that the euro was most welcome.
For most products, losing international drug cartels and corrupt Third World dictators as customers would seem to be a desirable outcome. But these guys represent part of our long-standing and faithful base. If you think pundits are fretting about the slumping dollar now, just imagine what might happen if we start to lose the arms dealers.
Daniel Gross (www.danielgross.net) writes Slate's "Moneybox" column. You can e-mail him at moneybox@slate.com.
Photograph of euro paper money from Royalty-Free/Corbis.
Even drug dealers are giving up on the dollar.
By Daniel Gross
Posted Tuesday, Dec. 28, 2004, at 3:20 PM PT
The dollar's decline against the euro shows no sign of ending. Clearly, currency traders have made a long-term judgment about the relative value of the currencies of the Old and New Worlds. That sounds bad enough. But now there are signs that we're losing some of the most devoted fans of the greenback: drug dealers, Russian oligarchs, and black-market traffickers of all kinds.
James Grant, of Grant's Interest Rate Observer, whose animadversions about the dollar and other subjects are as droll as they are pricey, highlighted the latest indignities to befall the once-mighty dollar in his Dec. 17 issue. (Alas, it's not available on the Web.)
People the world over—central banks, companies, and individuals—like to hold the dollar. It's stable, liquid, easily convertible, and never goes out of style. The dollar is popular in the official global economy—the money that changes hands through computer terminals, checks, and wire transfers. But it has also been extremely popular in the world's vast cash economy. For American tourists, Chinese smugglers, Ukrainian arms dealers, and African dictators, the dollar has long been the currency of choice. The fearful and shady, those who subsist on tourism, and residents of countries with unstable domestic currencies love the greenback. Citing Federal Reserve estimates, Grant writes that "between 55% and 70% of the $703 billion of U.S. currency outstanding circulates outside the 50 states."
The United States benefits greatly from the fact that the dollar is the world's reserve currency. Many of the $100 bills circulating throughout the globe are essentially loans that we never have to pay back. Americans use them to buy goods, services, or other currencies. But many of those bills never return to our shores to be redeemed for anything we make or produce. Instead, they stay under mattresses in Bogotá, circulate in Iraq, and are stashed in bank accounts around the world.
But among a subset of global cash connoisseurs, the dollar is losing ground to the euro—and it has nothing to do with concerns over U.S. multilateralism. First, the euro zone has been expanding with the addition of new countries and the continued integration between Eastern and Western Europe. So there are simply more people who accept and use euros now. Since 2002, the growth rate of euros in circulation has far outpaced that of dollars. Add in the euro's recent strength against the dollar, and the case for Eastern Europeans and euro-neighbors to use euros becomes more compelling. In the 1990s, the dollar was remarkably popular in Russia, where residents had long been deprived of coveted Western imports. But between January 2002 and August 2004, Grant notes, the percentage of private Russian currency transactions employing the dollar fell from 94.1 percent to 84 percent while the euro's share rose from nothing to about 15 percent.
Finally, in the past two years, euros have also become easier to carry, store, and hide than dollars. Generally, the largest denomination of U.S. currency readily available is the $100 bill. But in the past two years, the European Central Bank has started to print 200-euro and 500-euro bills. These larger bills thus allow for the concentration of wealth in smaller packages. At today's rates, a 500-euro note is worth $682.
So if you wanted to, say, hide cash by swallowing it temporarily, euros would the obvious (and more comfortable) way to go. And indeed, as Grant notes, in October a drug mule traveling from Spain to Colombia was found to have an unexpected form of contraband in his stomach: $197,000 in euro notes. The same month, Fidel Castro declared that the dollar, which is tolerated as a means for Cuban-Americans to support their relatives in Cuba, was officially currency non grata and that the euro was most welcome.
For most products, losing international drug cartels and corrupt Third World dictators as customers would seem to be a desirable outcome. But these guys represent part of our long-standing and faithful base. If you think pundits are fretting about the slumping dollar now, just imagine what might happen if we start to lose the arms dealers.
Daniel Gross (www.danielgross.net) writes Slate's "Moneybox" column. You can e-mail him at moneybox@slate.com.
Photograph of euro paper money from Royalty-Free/Corbis.
The Chinese would never dream of pegging the Yen to the Euro.
The Euro is so high that European countries, which used to be world leaders in exporting manufactured goods(Germany, Italy, France,etc.) are losing ground with each day to China and other Asian countries, even Vietnam is turning into a manufacturing powerhouse now.
The Chinese especially are so much more competitive(CHEAPER) selling their products in USD to the rest of the world they would be foolish to increase their prices by 35% by switching to Euros.
Just look at the Chinese trade balance with Canada, and with all the European countries. China exports 10 times more than it imports from any country in North American and Europe....and the only thing it does import is raw materials...so they can manufacture finish goods and ship them back to us.
The Euro is so high that European countries, which used to be world leaders in exporting manufactured goods(Germany, Italy, France,etc.) are losing ground with each day to China and other Asian countries, even Vietnam is turning into a manufacturing powerhouse now.
The Chinese especially are so much more competitive(CHEAPER) selling their products in USD to the rest of the world they would be foolish to increase their prices by 35% by switching to Euros.
Just look at the Chinese trade balance with Canada, and with all the European countries. China exports 10 times more than it imports from any country in North American and Europe....and the only thing it does import is raw materials...so they can manufacture finish goods and ship them back to us.
A real tragedy, after all the last time the USD was .83 against the CAD was in 1990 - 1992, and we know what terrible economic times followed those years...... The US accounted for 60% of WORLD growth (95-2000) - hate to see that happen again.
LOL
OTB
LOL
OTB
Now there is some mind numbing economic analysis. You must be liberal arts major.....Ranger68 said:
OTB
Here's my source:
"Some 60% of the world's economic growth since 1995 has come from America."
http://www.economist.com/displaystory.cfm?story_id=2172052
If you need an account, buy one, it would do you some good.
OTB
"Some 60% of the world's economic growth since 1995 has come from America."
http://www.economist.com/displaystory.cfm?story_id=2172052
If you need an account, buy one, it would do you some good.
OTB
I'll dig up my own percentage, thanks.
From a much more unbiased source than "the Economist".
LOL
Ah, of course a proper reading of that article points out what the author means - not that the USA is driving 60% of the world's economy - but that the US economy has been growing more relative to everyone else's.
Simple.
Pity you can't comprehend your subscription.
LOL
Naturally they are. At the cost of ballooning trade and budget deficits. Simple economics.
From a much more unbiased source than "the Economist".
LOL
Ah, of course a proper reading of that article points out what the author means - not that the USA is driving 60% of the world's economy - but that the US economy has been growing more relative to everyone else's.
Simple.
Pity you can't comprehend your subscription.
LOL
Naturally they are. At the cost of ballooning trade and budget deficits. Simple economics.
Listen little insult monkey, I said economic GROWTH, it is who can't read. I'm sure you'll souce that 12% from the same place you get the rest of your nonsense - your *ss.
The economist biased, that's rich.
OTB
The economist biased, that's rich.
OTB
Bush weakening the US Dollar to stop sex!
That bastard tsunami has now halted those plans (see how long it took Bush Jr. to react to try and keep the US Dollar weak as long as possible, until President Clinton finally convinced him that you cannot stop sex).
The US Dollar will strengthen in all currencies this year so the relief effort can yield more money in the affected countries and all of Asia and the world as everything is supplied in US Dollars. A stronger US Dollar is a stronger relief effort (and not to take away corruption as well....a stronger US Dollar not only helps those in need there, but helps the crooks controlling the money). So I expect the Thai Baht to be 42.5 in 2 months. The yen at around 109, the CAD around 1.32 in 2 months.
So be ready for a break and good sex coming, at least the first 6 months of this year. Bush Jr. will try and stop it the second half of the year, but it won't work as the next "scandal" will come to light. Then the election and Bush Jr. and the GOPs will be lame ducks.
It's always good to know that getting laid will help the relief effort more than contributing a dollar to an organization (of course every little bit DOES help, but actually being there, making friends, helping re-build and getting relief at night with girls sounds a lot better than hitting pot holes in the USA, getting mugged by US terrorists from ghettos at night by guns and knifes, or being forced to watch jobs getting shifted overseas....hell, I'll go "overseas"!). Bush Jr. said ALL Americans should contribute something to this relief effort.
Okay, strong US Dollar and I'm in. Profit, sex, help.
Yes, that's the real reason. Bush Jr. has been weakening the US Dollar so American males can go into bigger debt, not get huge incomes to simply pay it off and make fortunes, and to stop their interest in sex.ocean976124 said:
That bastard tsunami has now halted those plans (see how long it took Bush Jr. to react to try and keep the US Dollar weak as long as possible, until President Clinton finally convinced him that you cannot stop sex).
The US Dollar will strengthen in all currencies this year so the relief effort can yield more money in the affected countries and all of Asia and the world as everything is supplied in US Dollars. A stronger US Dollar is a stronger relief effort (and not to take away corruption as well....a stronger US Dollar not only helps those in need there, but helps the crooks controlling the money). So I expect the Thai Baht to be 42.5 in 2 months. The yen at around 109, the CAD around 1.32 in 2 months.
So be ready for a break and good sex coming, at least the first 6 months of this year. Bush Jr. will try and stop it the second half of the year, but it won't work as the next "scandal" will come to light. Then the election and Bush Jr. and the GOPs will be lame ducks.
It's always good to know that getting laid will help the relief effort more than contributing a dollar to an organization (of course every little bit DOES help, but actually being there, making friends, helping re-build and getting relief at night with girls sounds a lot better than hitting pot holes in the USA, getting mugged by US terrorists from ghettos at night by guns and knifes, or being forced to watch jobs getting shifted overseas....hell, I'll go "overseas"!). Bush Jr. said ALL Americans should contribute something to this relief effort.
Okay, strong US Dollar and I'm in. Profit, sex, help.
USD Bottoming out ?
Bottom fishing is always tough as you may get hooked. But I have the feeling that the USD is bottoming out. It is not out of the woods yet, but it will probably trade in the band between 78 cents and 83 cents for the remaining of the year, unless the crude oi price shoots up to $63 and beyond, which is unlikely at this time.
I am not saying that it is time to buy USD, but I will definitely not to short it.
Bottom fishing is always tough as you may get hooked. But I have the feeling that the USD is bottoming out. It is not out of the woods yet, but it will probably trade in the band between 78 cents and 83 cents for the remaining of the year, unless the crude oi price shoots up to $63 and beyond, which is unlikely at this time.
I am not saying that it is time to buy USD, but I will definitely not to short it.
