The decline in the value of the dollar

[LordChaverly]

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).

[xircon]

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

[LordChaverly]

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).

[shoeshine]

 

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!

 

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.

[scottf]

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

 

(i hope)

[El-Mariachi]

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.

[pk014b7161]

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

 

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.

we (the common folk) never seem to win

[angle20]

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?

The rest, as they say, is history.

[buck]

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.

[Eric_Collins]

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

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