Why doesnt anyone realize how bad this is?

[get456]

Talk to the average person on the street and they have NO clue wat is going on right now.

Party lines aside, we are in a world of shit.

Dollar's clout sinks worldwide - Yahoo! News

[DrewDog]

hurtin other economies that deal with the US too. up here Ontario is hurting something fierce because of your low dollar and our high dollar

[Harleymarleybone]

Originally Posted by get456

Talk to the average person on the street and they have NO clue wat is going on right now.

Party lines aside, we are in a world of shit.

Dollar's clout sinks worldwide - Yahoo! News

The sky is not falling. Weak Dollar is Bad is a misnomer:

Strengthening Dollar
Advantages

* Consumer sees lower prices on foreign products/services.
* Lower prices on foreign products/services help keep inflation low.
* U.S. consumers benefit when they travel to foreign countries.
* U.S. investors can purchase foreign stocks/bonds at "lower" prices.

Disadvantages

* U.S. firms find it harder to compete in foreign markets.
* U.S. firms must compete with lower priced foreign goods.
* Foreign tourists find it more expensive to visit U.S.
* More difficult for foreign investors to provide capital to U.S. in times of heavy U.S. borrowing.

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.

Disadvantages

* Consumers face higher prices on foreign products/services.
* Higher prices on foreign products contribute to higher cost-of-living.
* U.S. consumers find traveling abroad more costly.
* Harder for U.S. firms and investors to expand into foreign markets.

Strong Dollar, Weak Dollar:<br>Foreign Exchange Rates and the U.S. Economy - Consumer Information, Federal Reserve Bank of Chicago



The US economy saw benefits in August because of the record-cheap dollar. The cheap dollar, trading at record lows versus the Euro, has worked in conjunction with strong worldwide demand--increasing US exports. US exports hit a record high in August, fueled by demand in Asia and Europe, and these increases has shrunk the trade deficit to its smallest size since 2004.



Center for International Finance & Development: Weak Dollar Benefits Uncle Sam

[get456]

So somehow the bottom falling out of the dollar, where it is substantially lower value on the world stage.. considering how almost all of our consumer economy is based on IMPORTS, not exports, and we are in a substantial amount of debt to foreign governments (specifically China), is now a GOOD thing???

I mean lets say exports do increase... the price the other countries are paying drops, how is that good? They increase because the price goes down..... Thats a false benefit.

There is NO way to spin that to make it seem like a positive.

[the truth]

I don't think anyone's saying it's a GOOD thing; it's just a thing, with advantages and disadvantages as listed above.

[LanT]

Originally Posted by DrewDog

hurtin other economies that deal with the US too. up here Ontario is hurting something fierce because of your low dollar and our high dollar

Look on the brightside, you wouldn't have an economy if it weren't for the US

[Harleymarleybone]

Originally Posted by get456

So somehow the bottom falling out of the dollar, where it is substantially lower value on the world stage.. considering how almost all of our consumer economy is based on IMPORTS, not exports,

That's a bit of an exaggeration mate:


June 2007 Export Statistics Released August 14, 2007
EXPORT OVERVIEW:
• In June 2007, U.S. exports of goods and services grew by 11.2 % over June 2006 to $134.5 billion, while
imports increased 3.8 % to $192.7 billion.


U.S. EXPORT FACT SHEET

[solidspine]

Really doesn’t bother me, It would bother me I were Chinese,

or the Chairman of China.

What to they have invested in the US 20-25% of their GDP,,


Fools