Weak U.S. Dollar: Dollar vs Euro

[rastex]

As long as the US dollar is worth more than the Canadian dollar, it doesn't matter.

http://www.x-rates.com/d/USD/CAD/hist2003.html

Do you see a trend? I do.

 

[Theta]

10 cents in just 1 year?

 

[rastex]

You don't know anything do you?

Seriously, I mean you don't knwo anything about economics, never taken an econ course or anythign like that right?

 

[Cruzty]

Trying to explain some economy shit here with a language that isn't my native language, so bare with me.

From an european's (finland) pov:
A weak dollar is a horrible thing for our importing to the US. We're selling paper at the same price as we've been selling it for the past 5 years (not counting currency inflation here) to the US, but because the dollar is much weaker than the euro, you won't find our prices reasonable anymore when paying in dollars. On the other hand if you buy your paper from inside the US, the price is naturally the same as you're used to. And that kills our exports to the US, which is roughly one third of our whole exports. Only about 5% of the paper produced is used domestically, so you get the picture why exports are very important in the paper business.

 

[Theta]

I wasn't being sarcastic fag

 

[MST3K-rules]

Some people make it sound like the weaker dollar is the end of the world.

If it drops a lot more then we should worry, but for now I don't think there's anything horribly wrong with it being below the Euro.

 

[rastex]

I wasn't being sarcastic

My humblest apologies.

 

[Edofnor]

I'm moving to England, then. Besides, I just think £ is a cooler symbol than $.

 

[veorx]

Who would have guessed running an inflationary policy would devalue the dollar

:suprise:

 

[SweetbabyJ]

It's neither good nor bad. It just is. In the short-term, it makes our exports less expensive. All of the hyperventilation in the media is for naught.

Right now, it's not just the media hyperventilating, the EU is extremely worried. Why do you think they would worry if it's neither good or bad?

It probably won't have any effect in the long run, but it has the potential to create some major problems. The damage it would do to certain exporting economies around the world would be contagious and irreversable if the dollar continues to slide.

 

[Jotaro]

IMHO, this is just balencing out some of the artificial lopsidedness of Bretton Woods.

 

[stone]

Right now, it's not just the media hyperventilating, the EU is extremely worried. Why do you think they would worry if it's neither good or bad?

Probably because our shit costs more now? They'll get over it.

 

[SweetbabyJ]

Probably because our shit costs more now? They'll get over it.

I think it's more likely the fear of their shit not being sold. We do consume quite a few things from europe you know.