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  mdvaldosta11 months, 1 week ago

  When will it end?

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    bumbaklotartattack11 months, 1 week ago

    Why would anyone want to hold dollars at 4.35% when they can hold Euros at 6-plus%? The only way this is going to fix itself is when the Feds raise rates to make the dollar more attractive, but the public just regurgitates what the idiots on fox news say, and think low interest rates are good.

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      capecoralM11 months, 1 week ago

      http://www.american.edu/academic.depts/cas/econ...

      The current decline in the dollar will provide a much-needed stimulus to the U.S. economy. The

      falling dollar will bring especially welcome relief to the internationally competitive U.S. manufacturing

      sector, which has suffered disastrous consequences—lost jobs, reduced profits, and decreased

      investment—as a result of the dollar's overvaluation for the past several years. However,

      although the dollar has come down significantly from its peak in February 2002, it has not yet

      fallen nearly enough to reverse the damage caused by its high value since the late 1990s.

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        bumbaklotartattack11 months, 1 week ago

        Haha, yeah, sure, tell that to GM, who's laying off some 35000. Seriously, if you think the decline in the dollar is going to help the USA exports, I've got WMD in Iraq to sell you. That's akin to saying the weakened peso should boost Mexico's economy, and we all know what the general economy in Mexico is like. While the weakened dollar will help some businesses, it doesn't nearly offset the flight from the dollar of various countries, including Saudi Arabia, Dubai, China, and Japan. I seriously doubt Canadians are going to spend 1 trillion while shopping at wal-mart, but you're real good at regurgitating mainstream media.

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          capecoralM11 months, 1 week ago

          At the global level, the euro was the second most actively traded currency in April 2007, as it was on one side of 37% of all foreign exchange transactions. The most traded currency was the US dollar with an 86% share. The Japanese yen, with less than 17%, was third and the pound sterling fourth, with 15%.

          U.S. consumers benefit from a strong dollar, but U.S. exporters are hurt. A strong dollar means that it takes more of a foreign currency to buy U.S. dollars. U.S. goods and services become more expensive for foreign consumers who, as a result, tend to buy fewer U.S. products. Because it takes more of a foreign currency to purchase strong dollars, products priced in dollars are more expensive when sold overseas.

          Weakening Dollar Advantages

          U.S. firms find it easier to sell goods in foreign markets.

          U.S. firms find less competitive pressure to keep prices low.

          More foreign tourists can afford to visit the U.S.

          U.S. capital markets become more attractive to foreign investors.

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            capecoralM11 months, 1 week ago

            A Different Lesson from the '90s

            During the autumn of 1995, the U.S. dollar began to weaken significantly against both the Japanese yen and the German d-mark. The U.S. economy was still recovering from the 1990-91 recession, although many were concerned about the weakness of the recovery. When the dollar began to fall, this increased investors' and consumers' concern about the strength of the recovery. There were even calls for the Treasury to direct the Federal Reserve to buy dollars and sell yen and d-marks in an attempt to strengthen the dollar.

            However, the dollar was not falling because the U.S. economy was weak. Rather, the rising value of the other currencies reflected improving economic conditions within those countries.

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              capecoralM11 months, 1 week ago

              For Example:

              As the dollar weakens against the euro, it could dampen European exports to the United States, making European-made products from automobiles to consumer appliances more expensive for American buyers.

              The strength of the currency is becoming a political issue, particularly in France, which has repeatedly demanded that the ECB ends its nearly two-year rate hike campaign.

              "I don't criticize Trichet," Sarkozy told French television on Thursday. "But I'm saying: look at what's going on," adding "in the current economic situation, the Fed cuts rates, the ECB doesn't cut them."

              But others want to see the bank move, quickly.

              "Such a strong euro cannot do good to Europe's economy and not even to the feeble signals of recovery of Italy," Eni CEO Paulo Scaroni was quoted

              Airbus CEO Fabrice Bregier, said in an interview Friday If the euro rises to $1.45, he said Airbus would have to seek another $1.4 billion in savings.

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                bumbaklotartattack11 months, 1 week ago

                The Zimbabwe Stock Exchange (the ZSE) is the best performing stock exchange in the world, the key Zimbabwe Industrials Index up some 595% since the beginning of the year and 12,000% over twelve months.

                http://www.mises.org/story/2532

                How Bad Is Inflation in Zimbabwe?

                http://www.nytimes.com/2006/05/02/world/africa/...

                But whatever, man. It's your money. LOL!

                edit: Oh wait, you actually think the USA economy is doing well. LOL! I'm not going to even bother talking to you. You obviously have no clue as to what's going on, no clue whatsoever. You'll learn in time. Have fun.

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                  Goppy11 months, 1 week ago

                  Capey is the orginal VooDoo economist!!!

                  He Luuuuuvs Goerge W. Bushs economic policy of vastly increasin spendin while cuttin income!!

                  I tried that onct.

                  I had a $1,200 a month mortgage - which me and the wife just covered with the both of us workin.

                  But when GW cut taxes for the wealthy - and increased spendin - we figured that must be good economic policy!!

                  So, we took out a second mortgage, and I went to part-time.

                  Woulndt ya know it?!!

                  The bank foreclosed on our house!!!

                  I rote an angry letter to Karl Rove.

                  Now Im on some kinda list with Homeland Security.

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          Jaydee4011 months, 1 week ago

          Canadians are pi$$ed because prices here don't represent the current value of the dollar. A class action law suit is happening against GM, Chrysler, Honda, and Nissan because their prices in Canada have not dropped to resemble US prices and the manufacturers have told US dealers if they sell new cars to Canadian customers they will loss their dealership. The amounts are anywhere up to 20 thousand dollars that you can save if you can find a dealer that will sell to you. The case is to be heard next year some time.

          http://www.citynews.ca/news/news_15167.aspx

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            capecoralM11 months, 1 week ago

            Buy American your money will go a lot further! Now is the time to get real estate to. We love you Canadians in Fla.:-)

            But really I have a lot of family in Canada and they are saying the same thing. Now that they can better afford it they are on their way to the warm weather this winter. Come join them in Sunny Florida!

            The Canadian dollar has experienced a summer of record highs on soaring crude prices and a strong economy. Retail prices, however, have yet to adjust, according to an economist at one of Canada's large banks.

            Doug Porter, deputy chief economist at the Bank of Montreal, released a study Friday that indicates Canadians are paying roughly 24 percent more than Americans on identical goods despite parity in the U.S and Canadian dollars.

            Porter compared 17 goods sold in Canada and the U.S., finding that retail prices in Canada have not yet responded because most are set a year in advance.

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              Jaydee4011 months, 1 week ago

              Just goes to show price gouging is not only an American practice, maybe we should send the people doing this south and revoke their citizenship before they come back.

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    deathray11 months, 1 week ago

    Remember, currency valuations are metrics of the strength of one economy relative to another.

    The dollar is collapsing relative to others because:

    1)our economy is growing more slowly than the world economy,

    2)we have terrible fiscal discipline,

    3)our savings rate is dismal,

    4)our monetary policy is oriented towards providing cheap money to deals that do not add real growth to the economy.

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      mossback11 months, 1 week ago

      Tell me then, why is the stock market going up, exports are going up, imports and the trade deficit are going down, and inflation is low? Is your definition of a good economy one that makes it cheap to go buy stuff in Canada? Are you upset because you can't buy an overpriced BMW as cheaply as you could two years ago? The fact is, we are finally getting our financial house in the proper order and our currency is floating freely in the world market making our goods and services priced competitively. Unemployment is the lowest it has been in decades but the liberals whine no matter what the news.

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        joeblowe11 months, 1 week ago

        Many of these things are BECAUSE the dollar is low. Stock market goes up in response to ... well, who knows really? If the stock market made any consistent sense, wouldn't we all be rich? Exports are going up because the foreign currency is able to buy MORE U.S. goods - they are a "bargain." Trade deficit same thing - more exports. I can't think why inflation is low - with the cost of fuel going up so much this last while, the price of EVERYTHING should be getting inflated. I'd GUESS it's because the regular JoeBlowe's salary isn't really going up fast enough to cover the increased costs of everything, so the low inflation rate is here at the expense of the citizen's discretionary income. Which might also help to explain why savings rates are low.

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          capecoralM11 months, 1 week ago

          http://www.federalreserve.gov/pubs/bulletin/200...

          The value of the Dollar is more related to international trade competitiveness than it is to the domestic economy. In a global market a lowering of the dollar spurs foreign investment, hence foreign liquidity flowing into US economy via the stock market and M&A activity. Because of the trade imbalance with US trading partners and the manipulation of the value of that currency there is need to balance the values. This in turn makes the US exported products more competitive in foreign markets. So the inverse of what many claim is a true reflection of the dollar. Meaning a high Euro, or inflated Euro can now purchase more of the higher valued US products. Most who engage in selling US products in foreign markets welcome this competitive advantage, finally. In the same vein those wanting to attract foreign capital to US markets also welcome the adjusted exchange rate.

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            joeblowe11 months, 1 week ago

            Personally, I'm not so much wanting to get FOREIGN capital into the U.S. - I'd like to get our OWN money back and reduce our foreign debt.

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            Jaydee4011 months, 1 week ago

            "Most who engage in selling US products in foreign markets welcome this competitive advantage,"

            That would be the arms dealers who can not compete with the Russians for third world clients. As for other manufacturers so many jobs have been outsourced the advantages are not what they should be.

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              capecoralM11 months, 1 week ago

              Why were the jobs outsourced to lower areas that have a lower cost of doing business?

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                Jaydee4011 months, 1 week ago

                To increase profits, but those profits don't help the country.

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        Justice4All11 months, 1 week ago

        Brilliant. Except that we are a net importer. And if it wern't for a slowing economy the deficit would be even worse.

        Times may be good if you work for Halliburton, but the rest of us are seeing our houses lose value.

        People whine about the high price of gas but don't realize that oil is traded in US dollars so it's not the price of oil going up, but rather the value of the dollar going down.

        But I guess this is all Clinton's fault for making the economy too strong.

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          Jaydee4011 months, 1 week ago

          Just wait for foreign investwers to come in and drive up real estate so that it's all owned by outsiders, just look at Banff for an example.

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          Jaydee4011 months, 1 week ago

          Just wait for foreign investors to come in and drive up real estate so that it's all owned by outsiders, just look at Banff for an example.

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        bumbaklotartattack11 months, 1 week ago

        The stock market is going up because there is excess liquidity. The markets are so flush with dollars that the market is artificially being pumped upwards, but this is just a band-aid on a lacerated aorta. There is nothing that supports the dollar. There is no reason why big institutions should buy dollars or USA treasuries when they can get better rates elsewhere. So once the big institutions dump their stocks at high prices on the stupid public, the market will fall again.

        Unemployment is rising. This is despite the fact that the government is employing hundreds of thousands over in Iraq.

        Inflation isn't low. It's actually around 15%. The reason the government says it's low is because basic necessities, such as energy, food, housing, are factored out of calculating inflation....Oh why do I even bother? You'll learn on your own.

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        deathray11 months, 1 week ago

        mossback -

        The market index (I assume you mean the Dow) is not an accurate reflection of the economy. The Russell 2000, which outperformed the Dow today, is much more accurate, because it looks at a larger range of companies.

        The bulls in the market today basically reacted positively to bad news from Citi and UBS, because guidance from these companies said that they had priced the credit collapse into their portfolios, even though the wrote down several billion dollars of expected bad loans.

        Also, the Fed released the total household net worth figures and they are basically a trillion plus dollars greater than they were for the last years reporting cycle. Of course, the reporting cycle ended before the credit crunch ensued.

        Basically, today's rally was not really based on fundamentals, but on behavioral economic predictions. The risks of inflation, recession, further dollar devaluation and further credit market woes are still very real.

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          deathray11 months, 1 week ago

          The Bush consumer "recovery" is largely financed through debt. The question is whether or not the consumer economy will be negatively impacted by the credit crunch.

          Both Alan Greenspan and Dick Syron, the CEO of Freddie Mac both predict the possibility of a US recession in the next 12 months to be greater than 40%. Lowering the relevant Fed interest rates will cause inflationary pressures.

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    marshx11 months, 1 week ago

    when indeed? its sucking energy out of alot of people.

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    engineer11 months, 1 week ago

    We've shipped our jobs, We've shipped our technology. we have nothing worth offering. We are the biggest debtor in the world. Why would you invest in the US in its present state?

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    buzzsaw11 months, 1 week ago

    Not gonna happen. Dollar will be worth toilet paper in a year or two. At least it will more valuable then the Constitution thanks to GW and friends.

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      buzzsaw11 months, 1 week ago

      Google Amero, North American Union, Security and Prosperity Partnership Of North America. Why do you think GW doesn't want to close the borders? Why doesn't he stop the flood of illegal immigrants? Why doesn't he want to get us out of Iraq? Why has he bankrupted our nation? Why has he trashed our Constitution? Check out these videos to find out:

      http://www.youtube.com/watch?v=6hiPrsc9g98

      http://www.youtube.com/watch?v=T74VA3xU0EA&NR=1

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        Teech11 months, 1 week ago

        Why? Because he could. His campaign supporters have netted billions in tax cuts and incentives, war profiteers have netted billions by supplying munitions and materials in Iraq, and the Bushtapo has looted the country and borrowed 10 trillion to finance the war.

        Too bad this money wasn't spent on our own infrastructure, medical care for all Americans, schools, jobs, etc.

        Iraq has nice new pipelines to ship oil into Saudi Arabia and beautiful new bridges.

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  crespi11 months, 1 week ago

  AMERICA FIRST!

  Well, right after Europe and Canada...

  But we are still a fiercely (stupidly) PROUD nation.

  Bush is our GOD. HE will provide.

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    earthlingerer11 months, 1 week ago

    ..and China and India and...

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  nikkibabe11 months, 1 week ago

  Thanks to the cowboys who took over White House and Congress, here is a grim note:

  In 2000 US$1 = CAN$1.38

  Today CAN$1 = US$0.99c

  The idiot sitting in the oval office says the economy is booming. There are still 38% who say he is doing a good job. I wonder where they live and what they do for a living?

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    Dionys11 months, 1 week ago

    For a living?

    Maybe no-bid contracts and shoddy construction work?

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    earthlingerer11 months, 1 week ago

    Here's another historical comparison...

    Bush's inauguration was $1 to 4 Lithuanian Litas. Today it is $1 to 2.4 Lithuanian Litas.

    Yup, since day one of Bush. Mission accomplished.

    And according to CBS, the last poll released last month put him at 29%. Don't inflate the figures, you'll excite the hyenas.

    Lithuania is a small EU country with no natural resources, and has actually had more than 10% of it's population emigrate in the last three years. The GDP is so bad that politicians are beginning to draft laws to restrict the formerly round-the-clock sales of alcohol in order to get the GDP comparable to Slovakia or Romania.

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      Jaydee4011 months, 1 week ago

      I looked it up and since the shrub took office the US has lost about 40% to every developed country in the world. I think the war is a prime reason and the fact that you needed to borrow the money and now can never hope to repay the money the country owes.

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    pongping11 months, 1 week ago

    And since Canada is the largest exporter of oil to the U.S. we pay more for that oil. Who controls that oil anyway?

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  simonsez11 months, 1 week ago

  I don't think you understand how helpful this situation is to American manufacturers of all products, but particularly auto companies like GM, Ford and Chrysler. The low interest rates and low currency conversion allow them to rebuild their brands and compete against Japan and the Germans.

  The low dollar helps American companies ...

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    earthlingerer11 months, 1 week ago

    I don't think YOU understand.

    Japan and Germany, as well as all those other countries depend on exports to the US to survive, and prop up the dollar to no small part.

    A lower dollar means their CD players, cars, consumer goods, cheeses, wines, and tourism industries are in dead float.

    They are thanking whatever deities for the Chinese and Indians.

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    deathray11 months, 1 week ago

    The low dollar makes profits American companies make abroad more value, when valued in dollars.

    However, as pointed out above, the US is a net importer, and requires significant FDI to maintain our lifestyles, which, in turn, is demanding higher returns on investment, putting pressure on interest rates of Treasuries.

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    NoWayMan11 months, 1 week ago

    so, according to you we shold let the dollar drop until it equals the peso, right?

    a weakend dollar might be good in the short term. but in the long term the lower dollar is not going to help america.

    and now with the euro being the new standard of choice, other countries don't need to help us prop up our currency.

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  gsmaster11 months, 1 week ago

  Yeah they help Corporate America but it certainly does not help you, the final consumer

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  pongping11 months, 1 week ago

  Does anyone else think that this story, and a bunch like it, is mislabeled?

  Would not, "Dollar Continues Slide at Record Low Levels," or something like that be better? Help me out here.

  Guess I'm being petty!

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  saneman11 months, 1 week ago

  Hopefully, people, here, are taking advantage of this on the Forex Currency Market. Talking about it, instead of actually buying into the EurUSD currency pair doesn't make anybody any money. As a tip, before the Europeans get out of bed in the morning, buy about 100 lots at $50 per lot of the EurUSD currency pair. Then if the EurUSD advances only about 10 Pips, the reward would be about $50,000 in one day. Do what the banks do all the time.

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  markmawn211 months, 1 week ago

  YOu know we're about to go bust when we're measured against the peso. What's next the Egyptian Pound? Oh yeah, that's fixed against the dollar. Not good being Egyptian right now either. Gag!

  Let's make a run on Tiajuana before there prices go up!

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    Jaydee4011 months, 1 week ago

    At least some body has their head on strait.lol

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  mamasan11 months, 1 week ago

  oh the s hit is going to hit the fan very soon

  The New President will inherit another

  Rebuplican mess.

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  Uriah4411 months, 1 week ago

  One point to consider is that "valuations"(such as housing)are based upon a pile of IOU's that derivitives traders and their ilk have flipped over and pronounced to be "assets".In reality there are hundreds of billions, probably trillions of dollars of these "assets"(not just in real estate)tied through the dollar to the major currencies of the world. The recent panic attack in mortgage lending and related securities are a perfect example(of phoney asset values)with firms going bankrupt or cancelling major transactions for lack of cash or credit. Citibank cut out all lending to mortgage companies over a month ago. It may seem like the crisis has abated, but this is because the Fed, Bank of England, and European Central Bank all pumped about $100 billion in liquidity into the credit markets in September, thus averting a major panic. See http://www.larouchepub.com/eiw/public/2007/2007... for a more complete picture.

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  HateKoolAid11 months, 1 week ago

  Hey stop all this negativity. If Hannity, Fred Barnes and good old Brett Humes say the economy has never been better that should be good enough for you naysayers.

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  canadianrancher5711 months, 1 week ago

  JUst reading through the above posts one can notice that some are consumers and some are producers, I am a producer and I have already started to hurt because of our higher Canadian dollar. If our dollar continues up it will make my business a nonprofit event. Yet on the other hand if I run down to Minot I can get more bang for my buck. The multinationals can move production from one country to another in very short order, I'm like capecoralM, I believe this lower dollar will greatly improve your economy. For those who try to bring the political aspect into this it is more of a world situation, If it was a political thing I doubt if your government would have allowed all those companies to outsource jobs.

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  kedirian11 months, 1 week ago

  Just think - with the cheap dollar millions of Europeans will go shopping in the Us.... and, perhaps, civilize their erstwhile colonies!

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  saneman11 months, 1 week ago

  This article is now absolete due to the dollar regaining 120 Pips overnight versus the Euro.

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