Will the value of the $ bounce back?

[Bill3000]

The only tangible downside of the current dollar decline is that canadian money can't be mocked.

 

[Winner]

Yes, many times.

Again, this is a MEDIA created crisis. 78-80 was a particularly bad time and we got through that. Last I checked interest rates are not 17%, inflation is not something comparable, and were not lining up for hours to purchase gas

Cycles happen folks. Ignore the idiots in the media

The economy wasn't so globalized back than, and there was Cold War going on, nobody wanted any real collapse of the US markets.

Today, it's bit different. I don't say we're about to see a doomsday soon, but I do think that the dollar dominance must go.

 

[Winner]

The US is a big importer. with a weaker dollar means our imports(damn near everything) is going to be higher. Plus it means our goods are more attractive to foreigners so demand increases which means prices will go up. So it's safe to say that consumers will be forking over more cash to buy things.

Exactly. It will help certain types of exporters, but common Americans are going to suffer.

 

[Winner]

Like Marla said in some other thread, it actually helps Europe - weaker dollar means we cope better with the rising prices of oil and import electronic stuff cheaper.

 

[Powerwise]

I don't think there really is another currency out there that is reliable enough (at least at present time) to take over from the dollar. I just don't think the confidence is there for the Euro or Yuan to trump the greenback.

 

[MobBoss]

Exactly. It will help certain types of exporters, but common Americans are going to suffer.

Being a common american, please let me know when I am supposed to be suffering and I will fill you in on what that is like.....

 

[warpus]

Being a common american, please let me know when I am supposed to be suffering and I will fill you in on what that is like.....

You really don't think a weak dollar affects you?

 

[Masquerouge]

I don't think there really is another currency out there that is reliable enough (at least at present time) to take over from the dollar. I just don't think the confidence is there for the Euro or Yuan to trump the greenback.

Mmmh. Since the introduction of the Euro, the part of the dollar in worlwide monetary reserves has (slowly) fallen down, for the benefit of the Euro. However the dollar is still the currency of choice.

Nothing to worry about, but it's a sign that the trust in the Euro is there. Note that the great loser is the Japanese yen. The Chinese Yuan is simply not there.

http://en.wikipedia.org/wiki/Reserve_currency

Former Federal Reserve Chairman Alan Greenspan said in September 2007 that the euro could replace the U.S. dollar as the world's primary reserve currency. It is "absolutely conceivable that the euro will replace the dollar as reserve currency, or will be traded as an equally important reserve currency."[2] Econometrical analysis sugests, the Euro may replace the U.S. dollar as the major reserve currency by 2020 in case that: (1) the remaining EU members, including the UK adopt the Euro by 2020 or (2) the recent depreciation trend of the dollar persists into the future.[3]

 

[Winner]

Being a common american, please let me know when I am supposed to be suffering and I will fill you in on what that is like.....

You know what I mean. Expensive goods isn't exactly a pleasant thing.

 

[MobBoss]

You really don't think a weak dollar affects you?

To some extent sure. However, I really want to know, as a common american, how much am I supposed to be 'suffering' because of it....

You know what I mean. Expensive goods isn't exactly a pleasant thing.

More expensive imported goods. Doesnt a weak dollar also mean my american made goods will be less expensive/more in demand?

 

[mrt144]

More expensive imported goods. Doesnt a weak dollar also mean my american made goods will be less expensive/more in demand?

less expensive compared to imported goods. compared to other american made goods...no.

i think the idea that the US can pick up the slack production wise is a bit of a happy wish dream. We still would need to import the raw materials and still pay some schlep to make the product here, dollars above where a 3rd world worker would be paid.

i think you need to break down the cost of imports vs. domestic production.

imports negative price factors:
transportation

domestic production negative price factors:
labor
import of resources

 

[MobBoss]

less expensive compared to imported goods. compared to other american made goods...no.

Errrr. Huh? So my american made goods are going to be less expensive than imported goods....but more expensive than american made goods?

Again....huh?

 

[Mise]

Errrr. Huh? So my american made goods are going to be less expensive than imported goods....but more expensive than american made goods?

Again....huh?

You can't be asking that question seriously. Imported goods will get more expensive, American goods will stay the same price. The whole effect is generally inflationary, though.

 

[downtown]

I suffered from this...I had to postpone a trip back to the motherland because travel and other things now became too expensive

 

[mrt144]

Errrr. Huh? So my american made goods are going to be less expensive than imported goods....but more expensive than american made goods?

Again....huh?

American made goods will not change relative to other American made goods. If a domestic widget price is the same and a domestic woozit, the increase in the price of an international watzit will not change the relative price between the two competing domestic products.

one of the biggest problems though is that we depend greatly on foreign natural resources for our domestic production that the declining in the dollar will increase the costs of production here in the US.

 

[warpus]

American made goods will not change relative to other American made goods.

Depends where the parts are coming from, though. I suppose that's technically "assembled in the U.S.", but the point is that American goods will fluctuate with respect to other American goods.

Or at least they should, in theory.

 

[mrt144]

Depends where the parts are coming from, though. I suppose that's technically "assembled in the U.S.", but the point is that American goods will fluctuate with respect to other American goods.

Or at least they should, in theory.

I said that in the second part Because we rely heavily on imported parts/resources we arent going to see amazing cheap american made products.

and sure, on the individual level there will be differences because of international sources of resources etc, but in the big picture the relative price of american goods to other american goods will not be dramatic.

 

[MobBoss]

You can't be asking that question seriously. Imported goods will get more expensive, American goods will stay the same price. The whole effect is generally inflationary, though.

Actually, I would think it would mean a price decrease in american goods, as overall demand for them increases in comparison to more expensive goods.

 

[Mise]

Actually, I would think it would mean a price decrease in american goods, as overall demand for them increases in comparison to more expensive goods.

Okay, maybe you were asking that question seriously...

Anyway, other people here seem to have more patience than me, so I'll leave them to answer your question

 

[Mulholland]

Actually, I would think it would mean a price decrease in american goods, as overall demand for them increases in comparison to more expensive goods.

All else equal an increase in demand doesn't decrease the price Moboss, not in the short run that's for sure.