Re: US dollar keeps sinking endlessly--worth the same as the Canadian dollar now
- From: "Avenger" <avenger@xxxxxxxxxxxxxx>
- Date: Sun, 23 Sep 2007 00:08:33 GMT
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Over $1.40 per Euro. I should have moved to Europe before this--it's
unaffordable to visit now.
Just because the Euro gained 20%? lol You have a very poor grasp of
economics. Exchange rates are relative. A US dollar is not the same as a
HK,
Canadian or Australian dollar despite using the same name.
The BP is now about $2 US dollars and of course they will be worth
slightly
less in England. But that's not the reason for the high prices in UK. I
can
remember when the BP was worth US $2.80 and the price of things was
cheap.
The lower exchange rate for the US dollar will make US goods more
attractive
to overseas buyers.
Moscow is the most expensive city on earth but this only means that the
standard of living is lower because the average salaries are still a
fraction of the US. If the average salary in the US is $50k for example,
you
would need $100k in Moscow to live at the same level.
The economy in the US is good because salaries are higher and prices are
lower.
Agreed Avenger. You have a pretty good grasp on economics here.
The weak dollar is due to the Fed trying to clean up the mess that Alan
Greenspan made by using the housing industry as a kind of Keynsian ATM
machine.
But one benefit to the people in the US is that the prime rate has just been
lowered so now mortgage rates will go down. Unfortunately, the real estate
market is high and will probably drop. So even though the mortgage rates are
low you may be buying something that will be worth only 90% what you paid
for it in a year or two.
I don't think it worked any better than just letting the
dot.com industry redefine itself and move on. Yes, some people were
able to borrow against fictional paper gains in their homes but they
lost income through having to pay those loans back AND in taxes.
Not to mention the fact that if the RE market drops (it will) they will have
0 equity and in effect own nothing. If they were smart they would have taken
those low % home equity loans and put it into something paying higher.
Turning the US $ into the US Peso is GWB's only plan to balance the
trade deficit. Nothing about actually doing something to improve what
the US has to trade.
You're forgetting that the US has always, and especially since WWII, had
it
easy. Europe was being rebuilt and the US had an advantage and people
became
used to this. Now, when other countries have developed their industries
and
the US has to actually compete it's going to be a whole new world.
Yes, but that rebuilding was done about 1960 or so therefore Western
Europe's financial woes are clearly due to something else.
Actually it took until the 80's to really show any effect about the time
Thatcher was in office and in the East it really wasn't until about 2000.
Foreigner's who move to the U.S. say that what they think is so great
about the country is the ability to start new small businesses easily
and quickly. In addition, taxes are far lower. The German tourists who
traverse the U.S. countryside in their strong Euro's are largely a
minority as most Europeans don't have a lot of money in spare income
(those that are employed, that is.) It's basically a big theme park
with a lot of workers who are comfortably fed and housed, but don't own
a lot.
That's because they don't save and put at least 1/2 down on a property and
take a shorter term 15 yr mortage. And don't borrow any money on your
property.
In addition, Europe is getting saddled down with the same ugly form of
marxism that we have in the form of feminism and political correctness.
Italian men are going to jail for kissing girls on the cheek. France is
projected to be an Islamic nation in about 40 years or so.
I don't think they're that dumb. You'll notice that many countries are
making very tough laws on immigrants.
You're right: It will be a whole new world but then again, that's been
the case for the last 50 years or so. So it's a good for ANYONE who
thinks they can rest on the status quo.
The ONLY unchanging thing throughout all of this is that men run things.
Men will always run things, it's Nature. Sure, you may get a prime minister
here or there but it's not in a female's nature to be in charge.
That plus massive outsourcing of professional positions and massive
illegal immigration is turning the US into a 3rd world country with
low-paid domestic workers, a debased currency and a low interest rate.
That low interest rate will make foreign investors turn away from the
US
Why would they turn away from investing in the US? Land and real estate
would be more attractive to them.
--and pull their money out in favor of countries that can pay more.
And seeing as how the US has been living on money from foreign
investors for a long time, and is incredibly in debt (they're about to
hit the current debt ceiling, $8.695 trillion, I think, Oct 1), the
outlook is seriously bad.
US corporations, which long ago became multi-nationals, make most of
their money, or at least most of their growth, overseas (which has
been leading to the rise in the Dow--the US component of their growth
has been small), and don't give a hoot about the domestic situation.
In real terms, US workers have been making successively less each
year, and their savings rate has gone negative.
US always had a low savings rate. Besides, what you earn is relative to
what
you have to pay for goods. Prices are low in the US. Even Mexicans and
Canadians come over the border to buy things.
The US does seem to be
heading towards 3rd world status.
Well, that's my view, anyway. Can anyone point out where this analysis
is wrong and the picture is actually rosier than I think?
What's funny is that the same people who decry the eeevil corporations
putting the U.S. towards a 3rd world status are those that welcome the
same corporations hiring illegal immigrants just to keep the marxist
birthrate up. Hilarious.
It kind of reminds me of Hitler in his bunker doing ANYTHING to hurt
everyone else just so long as he can pretend like he's still relevent.
The leftist/marxist goal of a utopian society is long gone.
Europe is much less socialist than it was in the 70's. Much less. The Labour
Party in the UK was like the Communist Party. Thatcher damaged them to such
a degree that they look almost mainstream today.
They would
be happy just to see a miserable mess like most marxist Latin american
nations rather than a conservative prosperous western capitalistic
society...
regards,
PolishKnight
.
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