Dollar falls to fresh record lows

Discussion in 'Politics, Religion, Social Issues' started by zimv20, Dec 2, 2004.

  1. zimv20 macrumors 601

    zimv20

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    #1
    link

    thank god bush has aliented most of our allies. think of the embarrassment to him if the european bank had decided to help, after all.
     
  2. Hoef macrumors 6502a

    Hoef

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    #2
    Hey zimv20 .... A reasonable post afterall! :D
     
  3. edesignuk Moderator emeritus

    edesignuk

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  4. Desertrat macrumors newbie

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    #4
    Who knows? Maybe there'll be a return to the days when the Pound Sterling was worth five USD. I remember then...But I remember Yen at 360 to the dollar, as well.

    Some have expectations of $1.50 to the Euro. Quite possible; same for Yen at 90.

    The fly in that ointment is that as the world's largest consumer market, folks selling higher-priced items into the US will see sales dropping. That leads to turmoil in Europe and Asia--which is part of why China hasn't divorced the renmimbi from the USD.

    Hey, great times for tourists to visit the US. Y'all come! Keep America green; bring money! And go to the auctions, and buy back all that stuff the Rich Yanquis hauled here!

    :), 'Rat
     
  5. pseudobrit macrumors 68040

    pseudobrit

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    #5
    The $50 in leftover Canadian cash I've kept in my car since I last was there in Spring is worth about $10 more than when I bought it.

    I'm coming to think of it as a wise investment.

    I think I'll frame it, like a businessman who mounts his first dollar earned.
     
  6. takao macrumors 68040

    takao

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    #6
    i remember how the analysts said "more than 1.30 will not happend the next months" a few months ago ;) now they seem to talk about 1.40-1.50 like it's far away...
     
  7. Zaid macrumors 6502

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    #7
    There's probably not much the ECB could have done even if they wanted to, other than delaying the inevitable and making the eventual fall sharper and harder
     
  8. bousozoku Moderator emeritus

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    #8
    I remember seeing the dollar at 85 yen years ago, so it should be interesting if it falls further. The week I left Japan in 1985, Pres. Reagan devalued the dollar which caused it to fall from a almost perpetual 230-239 yen to 214 and of course, continue its horrendous slide to where it is today.

    Did it ever help sell more U.S. goods outside North America?
     
  9. Desertrat macrumors newbie

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    #9
    bousozoku, I remember the devaluation against the Yen in 1985, but my memory's numbers are a bit different, not that it matters. Anyhow, I vaguely recall coming down from around 180, +/-, with a target of 125 or so. The drop on down to around 85 scared the bejezeesus out of a bunch of folks.

    As far as helping US exports, yes, it helped Caterpillar against Komatsu, for one. It slowed US imports somewhat, which helped our savings rate. However, Asian-made machine tools were already overwhelming the US market--lathes, milling machines, etc.

    'Rat
     
  10. Xtremehkr macrumors 68000

    Xtremehkr

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    #10
    Well, it beats those stale, past the used by date lows.
     
  11. Desertrat macrumors newbie

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    #11
    zim, don't confuse friendship with money-matters. It doesn't matter how many central bankers worship at the Altar Of Bush, or if Soros made a practice of neck-hugging on Dubya. When it comes to money, they all look to their own good, first and foremost.

    And never forget that a primary endeavor of government is to create a system of fiat money and thereafter reduce its purchasing power. No bank, central or local, is ever gonna be your friend with your own best interests at heart.

    'Rat
     
  12. bousozoku Moderator emeritus

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    #12
    Well, I haven't been back to Japan since then. I couldn't afford it. The flight is still relatively cheap, it's living there that's so tough.

    As far as the 180, I assure you it was later than September 28, 1985. Besides, I bet I still have my money exchange receipts. :D I save too much.
     
  13. Xtremehkr macrumors 68000

    Xtremehkr

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    #13
    Apparantly the belief in Detroit (aka Car Companies) is that prices have made the difference and Japanese have suceeded based on solely on a weaker dollar.

    That was a theory presented on NPR today anyway. Do people want cheaper crap? I don't think so, try competing on the qualities people like Detriot.
     
  14. Desertrat macrumors newbie

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    #14
    Xtremehkr, have you ever worked in the auto industry? Ever worked alongside UAW folks? They're part of the reason that the number of hours per car is higher in the US than in Japan. Any way you slice it, if it takes longer to produce a car, you can't do as well for a given sales price.

    That said, note that the consumer-oriented magazines have reported that there are fewer warranty "comebacks" for US-made Hondas than for Japanese-made Hondas. Go figure...

    You can always buy a US-made BMW or Mercedes, though.

    :), 'Rat
     
  15. Ugg macrumors 68000

    Ugg

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    #15
    Today the dollar closed at 1.33999 to the euro. It had picked up a bit last week, but the continuing weak employment figures make it clear that gw is going to have a lot fewer tax dollars to be paying for all his "Greedy Society" programs.

    Any bets as to how low that poor greenback is going to go?

    I think it'll be around 1.55 to the euro by the end of the summer. Especially once gw tells the world how much his SS upheavel is going to cost. The currency markets are going to be shunning the dollar like last weeks leftovers.
     
  16. takao macrumors 68040

    takao

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    #16
    i think at 1.5 the US administration can't ignore it anymore

    summer really seems to be a really hot bet for 1.5 i agree...
     
  17. Nermal Moderator

    Nermal

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    #17
    Now's the time to import stuff from the US! :D ($1 NZD = $0.72 USD, normally it's around $1 = $0.65)
     
  18. Desertrat macrumors newbie

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    #18
    Yeah, the kiwi has been doing well, along with the Aussie dollar and the Loonie. Those countries selling into the China market are in good shape, both economically and in currency-strength.

    Amazing changes over the last 25 years, here in the US as well as elsewhere. Our savings rate has gone into the toilet, and our tax expenditures for social spending have soared. You can avoid the inevitable consequences of this latter as long as your exports exceed imports and there is ample economic activity to support the requisite tax-take.

    Right now, the biggest US export is money...

    I've long been puzzled about why so many people feel such a strong emotional need for new and shiny stuff, or, seems like, just "More!" This is a philosophical arena where I'm at a loss.

    Recalling the inertia effect of a very large economic system as it applied to oil prices in the late 1970s where it took several years for our changes in cars and light-bulb wattage finally wrecked the oil industry, I wonder what happens to those who sell to us when we eventually quit buying...

    'Rat
     
  19. pseudobrit macrumors 68040

    pseudobrit

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    #19
    I remember fresh out of high school I took a job working at a Kmart. They had a few savings plan options, and one or more had included company stock purchasing options.

    I vividly recall the managers raving about how wise an investment Kmart stock was at $5, then $4, and so on. "Bargain" was the word used most. O'course we all know how that ended up...
     
  20. mactastic macrumors 68040

    mactastic

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    #20
    Aw come on 'Rat, you've never had an internal argument with yourself over whether or not to buy a shiny new rifle to add to your collection?
     
  21. skunk macrumors G4

    skunk

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  22. themadchemist macrumors 68030

    themadchemist

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  23. themadchemist macrumors 68030

    themadchemist

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    #23
    It's the ol' bait and switch, isn't it? Conservative administrations overspend on defense and cut taxes too drastically and dig us into financial ruin. Then, when it becomes suddenly obvious that the economic situation is untenable, they don't cut back their own indiscretions but rather target the "vast spending on social programs," which have always been the very core of our government's wasteful spending. Yes, these are the same programs that serve to help all those folks whom conservatives would rather leave to the way side...

    And it's a real thorn in the sides of conservatives who know that Democrats' support of these programs helps them at the polls.

    So why not kill two (or more) birds with one stone? Launch ridiculously expensive programs that forward one's own neoconservative agenda, ruin the economy, blame it on social programs, get rid of said social programs out of "necessity," remove the Democrats' advantage by "proving" that those programs were the cause of economic injury to the country, and punish the folks who don't typically vote for Republicans.

    Social spending, indeed, 'Rat.
     
  24. Desertrat macrumors newbie

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    #24
    Yeah, sure, I've looked at lots of new toys. But: My pet rifles are mostly 35 years old or more*. My "most favorite" truck is an '85 Toy PU 4WD; 288,000 miles on it. I'm still using my 1978 Case 580C backhoe; it works just fine, thanks--and I don't want to work hard enough and often or long enough to pay that $44,000 for a new one. I've owned four new cars in my life: One of the first-ever IROCs, two pickups and a 3/4-ton van. Hey, my road grader was new in 1954. :)

    Lordy, I don't even want a new woman! (I look with appreciation, of course, at the sweet young things with whom the Lord has favored my old eyes.) :D

    tmc, consider: The budget deficit is some $500 billion. The Bush tax cuts cause the government to forego tax revenues of some $100 billion per year. The military share of the budget is up some $100 billion per year. So, on what sorts of programs are the other 300 billion dollars spent? They don't all favor Senator Pork's state of West By God Virginia. (Note: I agree with anybody that military spending beyond R&D commonly conveys no positive results to economic well being, absent outside attack.)

    'Rat

    * Exception: I spent the money for a new Remington 700 Titanium. Fully dressed out it weighs 6-1/2 pounds. My old legs appreciate the 33% reduction in weight from Ol' Pet. A dozen miles of hunting in mountain country isn't as easy as it once was.
     

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