How to make the US Dollar #1 in the world economy?
1 Easy Step
Nuke the rest of the world, FO SHO!
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How to make the US Dollar #1 in the world economy?
1 Easy Step
Nuke the rest of the world, FO SHO!
Unfortunately, this is something that the government has encouraged, as a way to keep US exports competitive. It's great if you're trying to sell something abroad, because you can charge 49% more than you normally would and still undercut the competition. But of course it's a double-edged sword, especially if you let the currency slide as much as it is now...
it looks a lot worse against GBP... ~2:1
And perhaps more worrying for you guys nearly 1:1 against the Canadian dollar
in the 70s and 80s, the British pound was always 2:1 over the dollar.
Its very positive to both our export industries as well as our tourist industy. Vegas income is up 20 percent over last year.
So some wins and some lose.
Hum...
It remains beneficial for US consumers because Asian Exports are still billed in USD but this may change and then it could mean disaster.
The chart only shows Forex since mid-2003 or so.
The actual change since Euro launch on Jan 1, 2002 is almost 100% gain for Euro, going from 1EUR = 0.8 USD in 2002 to 1Eur = 1.5 USD 2007.
While it looks nice for europeans buying products in USD (ie. mainly Asian exports, not really POS US cars, hehe), it is a true nightmare for EU export companies (Porsche & co aside).
We have an uber-educated idiot as head of EU Bank, Jean-Claude Trichet.
This guy went to the most elitist of the most elitist French schools and early governement jobs (French State Inspection of Finance, the "creme de la creme") and considers himself smarter than the rest of us, while succeeding to totally crash the largest french -state backed- bank in the wildest scandal ever (cost the French tax-payers about USD 20 billions...).
This retarded moron thinks keeping EU inflation under control is more important than supporting growth, he doesn't care about EU vs USD forex a second.
You know something goes wrong when Airbus CEO, direct competitor of Boeing, calls for relocating EU plane factories to the US in order to cushion the EU-USD Forex disaster.
I mean the same Airbus plane now costs TWICE more in USD than in 2002 !
Not because it has more features but only because of that Forex.
As one of your former US President candidates said, this is the sound of US sucking the skilled jobs of EU citizens.
Which is a serious fuck : the real threat for both EU and US economies isn't EU vs US competition.
Hint 1 : Vegas lost the # 1 spot of worldwide gambling cities in terms of annual sales.
Winner : chinese Macau, former portuguese colony 50 km east of HongKong.
Hint 2 : check the labels on your clothes, small electric appliances, IT components, mobile phones, mp3 players, toys, etc.
Can you still read "made in US / EU" ?
Now the good news is : selling a pair of Nike for USD 150-200 in a EU/US store while it cost only USD 10 to manufacture and import from China.
That, contrary to conventional wisdom, is tremendous and highly beneficial to both EU and US workers and companies.
It's the way to move forward, hopefully we can continue doing so.
But the sad truth is that most EU and US citizens are too poorly educated to figure out the benefit of such a trade...
They'll just scream "it's a scandal, you are ripping us off", not being able to assess where the added-value was distributed....
(remember : China only got USD 10 of the 150-200 retail price)
/salute
Quote:
Vegas income is up 20 percent over last year.
Interesting facts.Quote:
Hint 1 : Vegas lost the # 1 spot of worldwide gambling cities in terms of annual sales.
Winner : chinese Macau, former portuguese colony 50 km east of HongKong.
I'm a Brit, and although my country of residence changes regularly, I've always enjoyed an annual jaunt to Vegas to blow some of my hard-earned money.
Except for the past few years, that is, where travelling to the States has become increasingly less and less enjoyable due to over-zealous and ultimately ineffective border controls.
This year (in 3 weeks' time actually!), I'm going to Macau instead. Not because of currency concerns (far from it!) but simply because, in my opinion, the USA is no longer tourist-friendly. The irony that I feel far more welcome in "Communist China" compared to the "land of the free" isn't lost on me.
What's that got to do with the value of the dollar? Absolutely nothing, I suspect, but I'm sure there are some parallels to be drawn between the way the rest of the world perceives the USA and the value of the US$.
For my part, I had a long-standing limit order on my USD investments that saw them all automatically cashed in when the $ hit 2:1 against the GBP. Now my investments and cash savings are all sitting in GBP and EUR.
Given that I am neither an importer nor an exporter, nor do I have an interest in the money markets beyond my ability to profit from them, I have to confess that I'm entirely ambivalent towards the current situation (blissfully ignorant, in fact, as to the root causes).
What I do know is that one of my US$ fund managers contacted me over a year ago and told me that in the interests of "ethical investment", they were pulling out of the US investment markets entirely. He took a significant 6 digit amount of my money with him, and I'm a very small fish in that particular ocean.
Perhaps we'll see a turn-around at the next US election.
i dont think americans have ever been welcoming to tourism, its not a bad thing either makeing it that much harder to get into the country sorts out alot of immigration problems.
in the uk they welcome anyone, your even more welcome if you will work for penuts and dont mind working insane hours all year around basically doing the jobs that noone wants to do.
its actually getting to the point that if your british without a degree its getting increaseingly hard to find work, as there are so many polish and other nationalities working in england for far less than whats the min wage for brit citizens. Its about double even triple what they earn in their own countries so i cant blame them for it, but the problem still remains that its increaseing the amount of unimployment for british people fresh out of school, the pressure to get a degree is mounting up, and whats going to happen is everyone will come out of school and go to uni for a degree makeing them alot less worth while, or those very nice jobs that require degrees are harder to get because of the competion.
So, you are upset because somebody else is willing to do "your" job cheaper?
That's nothing, it has fallen to about 30% of it's value compared to NOK, and Euroes have fallen to about 65% of it's original value.
Step one of operation "Norwegianise the world" is complete!