I'm talking about foreign ****, that is made over there because when our dollar is strong their **** is cheap, or did you think i didn't understand that?
and yes I understand that a cheap dollar makes our goods cheap for them which in turn drives up our production, except we barely sell anything to them, accept more government debt instruments that my cheap dollar will have to help pay down in taxes in the future
exactly, the cheap dollar argument would work, except everything is going up in price due to multiple reasons, inflation, oil prices drive up the price of everything, who do you think truckers pass their prices on to
I work in manufacturing. It's good for our sales numbers. Still, our CEO wrote an article recently about how bad a weak dollar is long-term.
It's not that simple. The price of oil was under $25/barrel in the Fall of 2003. That was less than 5 years ago by my math. Since that time, it's more than quadrupled. Sorry...that ain't just the dollar buying less.
china is in the business of looking out for its citizen's. they are lenders we are borrowers. they buy our debt. how long will they continue to?
If the dollar wasn't so weak, I believe oil would be in the $60- $70 range. So it isn't just the dollar, but the dollar is part of it. Part of it is China, India, and other economies growing. Part of it is speculators investing in commodities rather than equities or real estate. Keep in mind that it isn't just oil. Gold, silver, and wheat (just to name a few) are reaching highs we haven't seen in DECADES. So it's very simplistic to blame oil companies. The fact is there incredible new demand out there, and no one is really doing much to supply it. Is the US doing anything to find new oil, like open up ANWR?
I know I'm about to be blasted: but when I go to the gas pump these days all I see is a picture of Dubya. He has screwed us all and he didn't even give me a kiss. Before Bush: we had a surplus, great economy. After Bush, we are freakin out of control. Say what you will about the dollar and supply and demand and whatever else you want to say, but the bottom line it's bush's fault and the sad thing is he doesn't even care that he took our economy and **** on it!
...except for the recession that Clinton left on Bush's doorstep upon entering office. OOPS selective memory, much? mmmhmm.
Last time I checked, the National Bureau of Economic Research locates the recession March 2001, two months into Dubya's term. Last time I checked, we are still in a recession today. Last time I checked Bush is still in office. What am I missing???
I hope you are not comparing the US to China. There are 120 -130 million Chinese who live for about a $1 a day. I think the average American is used to a lifestyle and the declining dollar is not good for that. The Chinese can keep the Yaun at what ever they want. I would rather the dollar not plummet in value. I mean milk has gone up 25% in the last year.
That was probably more a function of the .com bubble. Spending 3 trillion on a war that doesn't provide any benefits to the US while diluting the dollar supply can be directly linked to the W.
