Weaker Dollar

[mbossman2]

The dollar tumbled to a near 15-year low against sterling yesterday on fresh signs of economic trouble in the United States.

An 8.3pc crash in US industrial orders and an admission by the Federal Reserve chairman that Washington does not know how bad housing really is set off another day of wild gyrations on the currency markets.

Article (http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2006/11/29/cndollar29.xml)

There are times when have a weaker currency can serve a good purpose (slow down, stop or even reverse the import/export traffic) and making strategic moves to strengthen or weaken your currency can also make sense.

But even this has limits...the interesting thing'll be if the dollar stabilizes and lights the fuse on an economic recovery (like it did in the early 90's) or if it continues to slide...

if it continues to slide and the economy stumbles and stays stumbling, this'll be something for the right to hang on the left at presidential election time, especially if the left takes some growth inhibiting steps (like raising taxes and increasing regulations).

[troysvihl]

The terms "strength" or "weakness" in currency are misnomers. What one currency trades against another has very little to do with economic wellbeing.

[mbossman2]

in a perfect text book world, you are correct, but as a currency devalues and you wish to attract investors, you must pay a premium to entice those investors.

this leads to increased interest rates which leads to decreased borrowing which leads to decreased spending....

[troysvihl]

...which leads to currency inflows and increased savings, which decreases interest rates and inflates currency value, and on and on and on.

It's a giant cycle that has domestic winners and losers at every stage.

On the macro stage, however, currency value has very little to do with economic wellbeing.

[Computer Hobby]

Of greater concern is the flatness in consumer sales at WalMart and other retail outlets. Of course, that could be offset by dramatically higher cyber sales. More people are buying on-line. I know I am.

More troubling last month was the downturn in manufacturing (http://money.cnn.com/2006/12/01/news/economy/ism/index.htm?postversion=2006120113). "In its report, (the Institute for Supply Management) said new orders, production and employment all fell in November, although exports showed strong growth on the recently weakened dollar."

Of course, such corrections are normal in a healthy economy.

Bossman, I love the attempt to blame the Democrats for the economic slide. Always trying to find a silver lining for your band of theives. A knee jerk Republican to the end.

For those playing at home, the Democrats haven't even taken over yet.

[mbossman2]

Bossman, I love the attempt to blame the Democrats for the economic slide. Always trying to find a silver lining for your band of theives. A knee jerk Republican to the end.


I am truly sorry that you don't understand the word "if" and it's use in a sentence...

what I'll do is I'll explain, in really small words so even a moron like you will understand:

after the 1st of the year, the democrats will have some control and impact and IF (there's that word again, get out your Funk and Wagnall's dictionary) the economic slide continues, the right will have exactly the same opportunity to run their mouth that the left had in 2000: "look, you elected XXXXXX and see what happened to the economy!"

Of course, I have FINALLY come to the conclusion that your head is so far up your ass that any comments you make and conclusions you draw are, at best, highly suspect.

[drisley]

I arrived at that conclusion some time ago, and it was rammed home even more when he shit all over my views on Iran without taking even a minute to read up on anything I was talking about.

[mbossman2]

and to think back, he was such fun....now well...

[Gintaras]

I've posted same before...:

Congressman's Ron Paul of Texas speech before the U.S. House of Representatives, February 15, 2006:

http://www.house.gov/paul/congrec/congrec2006/cr021506.htm

Concern for pricing oil only in dollars helps explain our willingness to drop everything and teach Saddam Hussein a lesson for his defiance in demanding Euros for oil.

And once again there’s this urgent call for sanctions and threats of force against Iran at the precise time Iran is opening a new oil exchange with all transactions in Euros.

The only thing that still hold "almighty dollar" you can see from Ron Paul's speech.

Also, it explains about "WMD's in Iraq" and "nukes in Iran"

I don't think, anyone of you taking this seriously.
If, it would start again with mbossman's "links", Dris believing in what nut says, troy's unlogical "thinking", etc.

When you make/produce something- you get paid for. What you buy today is made....WHERE?

The whole United States with Wall Street today is like a bigger version of Enron.

[Computer Hobby]

Bossman, you used the word "especially" in your post when referring to what you perceive to be democratic policies. What part of "especially" don't you understand? Clearly your post was intended to set up placing the blame for any future downturn in the economy on the democrats. Since there are signs the economy is already slowing as part of a natural cycle, it is pretty clear that you injected political partisanship into this discussion for some imagined political gain.

In truth sometimes taxes need to be raised, and sometimes industries need to be regulated. Otherwise the government can't pay its bills and industries get away with murder (sometimes literally.) While reality means little in your daydream world of right wing ideology, facts sometimes have to be confronted. The last election was in part a recognition by the electorate that government by right wing ideology alone is impossible. That is why the incompetent right wing ideologues were thrown out and grownups were elected. Regardless of what you believe ideology never succeeds unless it supports reality.

The trick is to raise taxes only and to regulate industries only when necessary. Oh, since you have never asked, I am for small but effective and efficient government that actually delivers needed services requested by regular folks.

You might not have noticed but I was mostly supportive of your post.

What is sad about this site is that even when I do try to carry on a reasonable conversation, you guys have to resort to personal attacks. Maybe that is why you have about 6 regular readers.

Bye. And then there were five.

[mbossman2]

Bossman, you used the word "especially" in your post when referring to what you perceive to be democratic policies. What part of "especially" don't you understand? Clearly your post was intended to set up placing the blame for any future downturn in the economy on the democrats. Since there are signs the economy is already slowing as part of a natural cycle, it is pretty clear that you injected political partisanship into this discussion for some imagined political gain.

please note the "if" after the especially...

"Clearly my post..." only the world of CH is that true.

Since there are signs the economy is already slowing as part of a natural cycle, it is pretty clear that you injected political partisanship into this discussion for some imagined political gain.

and yet, the democrats, with the same situation in 2000, placed the blame at the feet of the republicans and you expect the republicans to do no less than return the favor? awfully naive.


If you chose not to come back and post, I wish you well...

[Gintaras]

In truth sometimes taxes need to be raised, and sometimes industries need to be regulated.

Pretty soon(if dollar will drop at pace it is now), mbossman might not to experience for himself why people in Sweden(where biggest taxes in the world), live way better financially than americans do, while taxes in US are lowest.