US Dollar collapsing

[Urban Ranger]

Originally posted by Sir Ralph
From what I have seen in earlier dollar lows (the last one I saw in the 90's with the $ equaling only about DM 1,40, while 1,70..1,80 was normal), it takes at most a year or 2 to recover. Can you explain me, how this low is different from the others?

As far as I can tell, the USD is dropping not only because of a trade deficit, but also because of the budget deficit and the national debt as well.

[Tingkai]

Originally posted by Wezil


Spoken like a true socialist. Enjoy your crutch. Apparently I have considerably more faith in the Canadian worker than you do. Excessive government taxation/spending is our #1 problem.

Earth to Wezil: It's called market forces, you know that thing that you conservatives so dearly love, but rarely understand.

A 25% change in currency values in two years will disrupt Canadian export industries.

[Dinner]

Originally posted by Wezil
Canadian dollar vs US$ is at highest level it has been in over a decade. Our socialist utopia rocks.

Sinking like a rock? Oh, that's just your manufacturing secter now that cheaper American goods will come flooding in. HAWHAHAHAHA!

[JimmyCracksCorn]

Originally posted by Oerdin


Sinking like a rock? Oh, that's just your manufacturing secter now that cheaper American goods will come flooding in. HAWHAHAHAHA!

Thats pretty much whats going to happen... Canadians are going in hordes now to border malls for the deals.

[Bosh]

Originally posted by Urban Ranger


As far as I can tell, the USD is dropping not only because of a trade deficit, but also because of the budget deficit and the national debt as well.

Also I guess there got to be a limit as to how much the East Asian central banks could prop up the dollar. Right now they've got the fun choice of throwing more good money after bad to keep the dollar from getting weaker or see a lot of their dollar-denominated assets decpreciate shraply. Sucks to be them.

[Japher]

Beer still costs the same, so I'm fine

[Sava]

[Japher]

oh yeah

[Spec]

US Dollar collapsing

YAY!


Spec.

[JimmyCracksCorn]

Re: US Dollar collapsing

Originally posted by Spec
YAY!


Spec.

I don't get why some Canadians seem to like this idea.

Canada is an exporter country! More precisely, Canada is a "exporter to the US" country. A high loonie no good.

[Dinner]

Boshko, people had the same choice in the late 1980's but if they held on to their dollar assets into the 1990's then they saw a big, big increase in value. As long as those central banks don't have to sell their dollar assets soon then they'll do just fine.

The deficit is already becoming an issue even on the FAUX News channel.

[Dinner]

Re: Re: US Dollar collapsing

Originally posted by JimmyCracksCorn
I don't get why some Canadians seem to like this idea.

Canada is an exporter country! More precisely, Canada is a "exporter to the US" country. A high loonie no good.

It's good if you want to take vacations over seas or if you want to buy foreign assets. Now would be a great time for Canadian companies to think about expanding abroad as it is 20% less expensive, or some where there about, due to the high Canadian dollar.

[Urban Ranger]

Originally posted by Boshko
Also I guess there got to be a limit as to how much the East Asian central banks could prop up the dollar.

Yesterday I heard that the Chinese bought 20b USD. Didn't seem to do much, either.

Originally posted by Boshko
Right now they've got the fun choice of throwing more good money after bad to keep the dollar from getting weaker or see a lot of their dollar-denominated assets decpreciate shraply. Sucks to be them.

They can always scoop up companies and real estates - like what the Japanese did (probably is still doing), and hope the USD will rebound Real Soon Now.

[Dinner]

Exactly. They have lots of dollars so they'll either keep them in reserve to back their own currencies or they'll start loaning them out to domestic banks to buy dollar dominated assets. That means realestate and businesses which would assist the over seas expansion of Asian companies.

[Wezil]

Alright, I'm convinced. It would be much better for our dollar to be dropping. How low shall we aim my fellow countrymen? 60 cents? Hell, let's dream BIG and go for 40....

I understand rapid change can be very disruptive, which is why our collective governments need to get off their arses and make the fundamental taxation/spending changes that need to be made so our industry can compete w/o a 20%+ exchange cushion.

Damn, what a collective inferiority complex this nation has.