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| Dollar Decline | |
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| Tweet Topic Started: Dec 6 2004, 01:23 AM (118 Views) | |
| ds9074 | Dec 6 2004, 01:23 AM Post #1 |
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Admiral
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A while back we were dicussing the decline in the dollar and when we would start talking about the risk of economic damage. The figures I heard back then were $2 to £1, $1.50 to €1 and 100 Yen to the dollar. Tonight the 24 hour news was on in the background but during the business report I looked up. The dollar hit $1.94 to the pound, $1.34 to the Euro and 102 Yen to $1. This seems like its getting close to those danger levels. The report went on to say that the EU growth estimate has been cut by 0.3% because of the fall in the dollar alone. This is the graph for the last 3 months Please, its time to reign in your overspending for the sake of the rest of the world and in the long term yours. Those twin deficits have to be closed. |
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| somerled | Dec 6 2004, 02:04 AM Post #2 |
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Admiral MacDonald RN
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They aren't likely to (reduce borrowing) and debt anytime soon. The lower the $US gets cf other currencies , the cheaper USA made goods become overseas. Making them more compeditive without actually having to improve cost of manufacture - so the USA will benefit while the rest of the world , especially their compeditors suffers. Now if the greater bulk of the borrowings were for plant expansions and improvements then this would be good (for the USA economy) in the long term, but it seems much of it is not. Irrespective eventually these borrowings will have to be repayed , or the USA will soak up all the available credit, then the shit will hit the fan. |
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| Admiralbill_gomec | Dec 6 2004, 12:42 PM Post #3 |
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UberAdmiral
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Sorry, but this has very little to do with trade deficits and lots to do with currency manipulation. Why? Because the very countries we import most from are making a concerted effort to weaken the dollar, which makes their goods more expensive, but in the short term helps their own currency without having to make any changes. Case in point the Chinese Yuan, which is still devalued by approximately 30%, on purpose. Considering our growth rate exceeds the EUs, and our unemployment rate is roughly half, the Euro is actually dangerously overvalued. We can thank our friends and allies, the French and the Germans, for that. It is the EU that needs to take some drastic steps, not us. |
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| Fesarius | Dec 6 2004, 06:02 PM Post #4 |
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Admiral
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Thankfully, the U.S. doesn't have knee-jerk reactions too often. I don't forsee any drastic changes in the way we do things in the near future.
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| ds9074 | Dec 6 2004, 07:48 PM Post #5 |
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Admiral
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So your saying that other countries are manipulating the currency markets in order to suppress their own exports and cut their own GDP growth? Sorry but you are dillusional in your attempt to show that the USA is never in the wrong. |
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| doctortobe | Dec 6 2004, 07:51 PM Post #6 |
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Speak softly, and carry a 57 megaton stick!
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But we aren't, didn't England get the memo? |
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| Admiralbill_gomec | Dec 6 2004, 09:07 PM Post #7 |
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UberAdmiral
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No, that isn't what I said. The CHINESE especially know that they have us over a barrel when it comes to importing their goods. They are going to "get while the gettin's good". If that brings in a hundred billion more in foreign currency, so be it. They can always buy dollars later. The Japanese tried the same thing in the early 1980s. It worked. DS, you really have no idea how bad trade is with China right now. As an example, if Wal-Mart was a country, they would be China's SIXTH-LARGEST trading partner. We're hooked on cheap Chinese goods. As for my "DELUSION," I'd suggest you look outside your window once in a while, Mr. Rule Brittania... |
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| ds9074 | Dec 6 2004, 09:12 PM Post #8 |
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Admiral
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I prefer to go outside and look around rather than peer from behind the glass :lol: (not to be taken seriously plz)
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| somerled | Dec 6 2004, 10:57 PM Post #9 |
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Admiral MacDonald RN
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Some interesting claims Bill . Care to back them up with some facts and links ? |
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(not to be taken seriously plz)
3:18 AM Jul 11