In addition to making a complete mess of US foreign policy, George Bush has also presided over probably the longest and most precipitate slide in the value of the dollar in modern US history. Indeed, the two dollar pound is a probability rather than a possibility within the next few months.

I think Miss Prism, in 'The Importance of being Earnest. was being somewhat overcautious when she says to Cecily: 'you will read your Political Economy in my absence. The chapter on the Fall of the Rupee you may omit. It is somewhat too sensational'

However, the continuing fall of the dollar could have sensational consequences in the long run, in that it could precipitate a global economic crash (I hasten to add that I don't think it will, but I could be wrong).

Yet another nail in the coffin for Engineering in Sheffield, cant compete for US business, they will go else where.

e.g. $1.60/£1 sell something for £100 = $160
Now $1.95/£1 = $195 !!!!!!

We are starting to lose customers (again) anyone know where I can get an application form for Macdonalds

it could also put a stop to the recent economy recovery in the eurozone. In addition, most countries hold a considerable proportion of their national reserves in dollars, so they will be suffering too; the export oriented growth strategies pursued by countries in the Far East have been fuelled by access to the big US market; most global trade is still conducted in dollars; most of the trade done on the foreign exchange markets also involves the dollar in one way or another.

If the US sneezes, or worse, catches pneumonia, we will all suffer in some way or other (notwithstanding the short-term advantages of cheaper holidays in, or cheaper goods from, the US).

If the US sneezes, or worse, catches pneumonia, we will all suffer in some way or other (notwithstanding the short-term advantages of cheaper holidays in, or cheaper goods from, the US).

Now, now LordC, don't go over the top! :hihi:

I'm prepared to bet that UK consumers will not see prices fall here, whatever happens to the mighty dollar.

That grasping Scotsman in 11 Downing Street, and his "Big Business" buddies will make sure of that. :mad:

calm down, it will hit $2/£ and then it will slide back down!!

(i hope)

The US deficit is just too large and is no doubt causing foreign banks some sleepless nights...perhaps the decline of the dollar is inevitable as power shifts from the West to the East.

Now, now LordC, don't go over the top! :hihi:

I'm prepared to bet that UK consumers will not see prices fall here, whatever happens to the mighty dollar.

That grasping Scotsman in 11 Downing Street, and his "Big Business" buddies will make sure of that. :mad:
we (the common folk) never seem to win :(

The US deficit is just too large and is no doubt causing foreign banks some sleepless nights...perhaps the decline of the dollar is inevitable as power shifts from the West to the East.
I've seen an estimate that the US trade deficit is around 7 trillion dollars. How much is that? Imagine a pile of $100 bills - rising 7000 Empire State Buildings high. That much. The Americans sure have a friendly bank manager.

And the US no longer manufactures a great deal: it's been said that the only time you are likely to be the recipient of a piece of genuine American manufacture is if you're shot at, bombed or step on a land mine. There are, though, earnings from intellectual property rights (such as software) as well as agricultural and raw material exports.

This huge scam is sustained, however, by the fact that (as Lord C mentions) most global trade is conducted in dollars: including oil and (illegally) drugs. This creates a 'demand' for dollars (and hence the maintenance of the 'price' - exchange rate - of dollars) which American domestic economic performance would not otherwise merit.

In 2002 our old friend Saddam Hussein was sitting on a big pile of American dollars. The US had received lots of oil in return for - so long as they weren't spent - the price of printing the bills. Saddam then started to ask to be paid in euros rather than dollars for his oil. Might he also want to cash in his pile of dollars? :o
The rest, as they say, is history.

Its an ill wind etc. Since I get part of my pension from the UK and Canada, and have some Euros in Ireland, my dollar income is being enhanced for now. So far I am not seeing any big effect within the US, interest rates and inflation remain fairly stable. A change in government is coming, with the Democrats possibly curbing the kind of spending that Bush has allowed to go unchecked.

cracking, i shop over on US eBay daily !!!! I was getting $1.91 Wednesday night :hihi:
________
Lincoln Cosmopolitan Specifications (http://www.ford-wiki.com/wiki/Lincoln_Cosmopolitan)

For those of us who get paid in US Dollars it's a continuing paycut.

I've seen an estimate that the US trade deficit is around 7 trillion dollars. How much is that? Imagine a pile of $100 bills - rising 7000 Empire State Buildings high. That much. The Americans sure have a friendly bank manager.

And the US no longer manufactures a great deal: it's been said that the only time you are likely to be the recipient of a piece of genuine American manufacture is if you're shot at, bombed or step on a land mine. There are, though, earnings from intellectual property rights (such as software) as well as agricultural and raw material exports.

This huge scam is sustained, however, by the fact that (as Lord C mentions) most global trade is conducted in dollars: including oil and (illegally) drugs. This creates a 'demand' for dollars (and hence the maintenance of the 'price' - exchange rate - of dollars) which American domestic economic performance would not otherwise merit.

In 2002 our old friend Saddam Hussein was sitting on a big pile of American dollars. The US had received lots of oil in return for - so long as they weren't spent - the price of printing the bills. Saddam then started to ask to be paid in euros rather than dollars for his oil. Might he also want to cash in his pile of dollars? :o
The rest, as they say, is history.

True but the Chinese and the Japanese wont hold onto useless dollars forever. There will come a time when they have other options.

As far as the Saddam story of selling oil in Euro's, I recall Iran saying something similar and hey presto they're a member of the axis of Evil.
I do believe that Russia is planning to open its currency upto trade and will soon be selling its oil in Rubles. That will undoubtedly have an impact on the value of the Dollar.

True but the Chinese and the Japanese wont hold onto useless dollars forever. There will come a time when they have other options.

As far as the Saddam story of selling oil in Euro's, I recall Iran saying something similar and hey presto they're a member of the axis of Evil.
I do believe that Russia is planning to open its currency upto trade and will soon be selling its oil in Rubles. That will undoubtedly have an impact on the value of the Dollar.

Putin certainly has plans to make the rouble fully convertible and also to sell oil in roubles as you say. However, its still a long stretch to argue that this will have much impact on the dollar. The Russian economy (if using the measure of GDP as a proportion of global GDP) is actually very small and even if the rouble achieved hard currency status (which even Putin has admitted will require and annual growth rate of 7% a year) it would still have to prove itself as a stable currency capable of challenging either the dollar or the euro. Indeed, these stories remind me of similar things being said about the euro displacing the dollar as the global currency. In my view, the dollar has a lot of life left in it as a global currency. It will recover from the malign influence of Bush, as will US foreign policy. :thumbsup:

calm down, it will hit $2/£ and then it will slide back down!!

(i hope)

2 USD to the pound?

mmm ... that's roughly where I started from!


All those who remember the coin that was nicknamed "half-a-dollar", put your hands up!
(although it was worth half that amount!)

I have an inkling that when I was a child, the exchange rate was $4 to the £sterling.

I may be wrong though. :)

I have an inkling that when I was a child, the exchange rate was $4 to the £sterling.

I may be wrong though. :)

Yeah, but that was in 1492...............:hihi:

Yeah, but that was in 1492...............:hihi:

I was a Deckhand on the Santa Maria! :hihi:

cracking, i shop over on US eBay daily !!!! I was getting $1.91 Wednesday night :hihi:


Yes, and anyone thinking of going on holiday or shopping in the States at the moment will see their pound go a long way.

A 'strong' currency is a reflection of a strong economy and trust in its stability. No?
It used to be something to be aimed for and meant that things are going well in that country. No?

But, it also has a detrimental effect on that countries ability to compete with regard to exporting goods and allows cheaper imports to compete with local markets.
This can close down our industries/businesses.
Tariffs used to protect us from these problems.
WTO etc. does away with these tariffs, so ......

Can someone explain what we should be aiming for and how these seemingly opposing effects can be avoided?

A 'strong' currency is a reflection of a strong economy and trust in its stability. No?
It used to be something to be aimed for and meant that things are going well in that country. No?

But, it also has a detrimental effect on that countries ability to compete with regard to exporting goods and allows cheaper imports to compete with local markets.
This can close down our industries/businesses.
Tariffs used to protect us from these problems.
WTO etc. does away with these tariffs, so ......

Can someone explain what we should be aiming for and how these seemingly opposing effects can be avoided?Oh, I love it when you talk intelligently cgksheff.Just wish I could understand it. :huh:

We are starting to lose customers (again) anyone know where I can get an application form for Macdonalds

your local mikki dees?

All those who remember the coin that was nicknamed "half-a-dollar", put your hands up!
(although it was worth half that amount!)

The old half a crown - or two and a tanner - 12 1/2 p in decimal currency (until we got rid of the 1/2 p).

Daresay Shoeshine still has a few with his collection of guineas, sovereigns, florins, thru'peny bits and and tuppence three farthings.

I have an inkling that when I was a child, the exchange rate was $4 to the £sterling.

I may be wrong though. :)

Nope.

You're not wrong. I too remember the USD/GBP exchange rates being $4 to the £1:thumbsup:

Nope.

You're not wrong. I too remember the USD/GBP exchange rates being $4 to the £1:thumbsup:

You must be quite old sccsux. The last time there were $4 to the £1 was in 1948. The last time there were $2 to the £1 was in 1981. Anyway, the dollar's current decline should enable you to buy a zimmer frame from the US ebay for an attractive price. :thumbsup:

A 'strong' currency is a reflection of a strong economy and trust in its stability. No?
It used to be something to be aimed for and meant that things are going well in that country. No?

But, it also has a detrimental effect on that countries ability to compete with regard to exporting goods and allows cheaper imports to compete with local markets.
This can close down our industries/businesses.
Tariffs used to protect us from these problems.
WTO etc. does away with these tariffs, so ......

Can someone explain what we should be aiming for and how these seemingly opposing effects can be avoided?

We should be aiming for a strong currency that increases our purchasing power (individually and as a nation) by producing things that people (at home and abroad) want to buy; as opposed to the equivalent of the Austin Allegro.

Yes, and anyone thinking of going on holiday or shopping in the States at the moment will see their pound go a long way.
yes at least 3000 miles:gag:

yes at least 3000 miles:gag:

By the time you have paid the travel and hotel costs (not insubstantial at thsi time of year) and also the duties on certain types of goods, any savings you make are likely to be pretty marginal. Still, Macey's always looks pretty at this time of year. :thumbsup:

You must be quite old sccsux. The last time there were $4 to the £1 was in 1948. The last time there were $2 to the £1 was in 1981.

I must've been drreaming it then. Must've been over $3 to the £ though when I was little younger:).

Putin certainly has plans to make the rouble fully convertible and also to sell oil in roubles as you say. However, its still a long stretch to argue that this will have much impact on the dollar. The Russian economy (if using the measure of GDP as a proportion of global GDP) is actually very small and even if the rouble achieved hard currency status (which even Putin has admitted will require and annual growth rate of 7% a year) it would still have to prove itself as a stable currency capable of challenging either the dollar or the euro. Indeed, these stories remind me of similar things being said about the euro displacing the dollar as the global currency. In my view, the dollar has a lot of life left in it as a global currency. It will recover from the malign influence of Bush, as will US foreign policy. :thumbsup:

I've no doubt that the Dollar will be a global currency for years to come, but whether it will stay in its position as the global currency is another matter.

The US appears to be heading into a period of isolationism and perhaps thats also playing a part in the decline of the dollar along no doubt with the new multipolar new order of the world. It would be no surprise that in this latest "new" world order the dollar will be demoted to being just another global currency.

I must've been drreaming it then. Must've been over $3 to the £ though when I was little younger:).

Its not been over $3 since the 1950s. It hovered around the $2.80 mark in the 1960s and just over the $2 mark in the 1970s.

I suspect that your memory might be playing tricks on you, because the half crown coin was referred to as 'half a dollar', even when it was worth no such thing. :thumbsup:

The old half a crown - or two and a tanner - 12 1/2 p in decimal currency (until we got rid of the 1/2 p).

Daresay Shoeshine still has a few with his collection of guineas, sovereigns, florins, thru'peny bits and and tuppence three farthings.

And groats! :hihi:

But I was a young child in 1947/8, so I do remember the $4 to the £sterling....must have been mentioned on the radio at some stage. I was an avid radio listener then. :)

I have an inkling that when I was a child, the exchange rate was $4 to the £sterling.

I may be wrong though. :)It was definitely pegged at 4 for a pound all through WW2 and beyond.