Weak dollar is coming fast

[FallRate 0]

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$5 a gallon, anyone?

This would be bad, Bill?

FallRate

[AdD 1]

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You are correct, bill. That's why I am not a Keynesian, and I disagree with Keynes's policies.

I am pointing out that, for the first time in my living memory, we have a president openly embracing Keynesian thought. There have been hints of it, but this is what the left has been arguing for since the 50's.

I think had Gore been POTUS and made these policies, he would be celebrated by the left adn reviled by the right. Now that Bush is making these policies, he is being reviled by the right and reviled by the left.

I'm taking a macroeconomics course at the moment, and I have to disagree with you. Keynesian economics really doesn't advocate a weak or strong dollar, and I really don't think that believing in his theories makes you a conservative or a liberal. It's simply a way to understand the economy in a shorter time frame, the non market clearing model.

Life is ez
On the dz
Every jumper's dream
3 rigs and an airstream

[lawrocket 3]

Actually, I'd disagree with you.

Keynesian thought drives economic policy, much like supply-side. Keynes believed that the economy could be stabilized, and full employment given, by certain policies. While Keynes did not specifically advocate a weak dollar, the reasons for this governmental decision are apparently to create jobs.

SUpply siders want a strong dollar to increase consumption. Monetarists do not care one way or another, so long as the government does not interfere.

Still, this process is government intervention in a market. The weak dollar is one way to do it.

Look beyond "the non-clearing model" and apply the knowledge of the theory to what is happening now.

My wife is hotter than your wife.

[jumprunner 0]

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Lets not forget what will happen to the predicted enormous deficit.....it will be even larger!! Then we'll be repaying the debt when the dollar is stronger, thus making it even more expensive.

This administration has done more to trash this country economically and socially in 4 years that I thought possible. People don't realize it yet, but everything he's done is going to have significant impact in the future.

All I know, is that every time the Republicans are in office, there is a recession, and when people get fed up with the recession and want their jobs back, the Democrats get elected, the economy improves, and the jobs come back.

Now, Im a conservative, and Im just calling it like I see it, and thats what Ive been seeing for years now:

The Republicans in office: bad economy - there goes your job and you cant find another
The Democrats in office: good economy - all kinds of jobs, take your pick

All Im saying is, I have conservative ideals, but when youre out of work and no matter how good you are at your job you just cant seem to get hired anywhere, you start feeling like a complete loser, you cant pay the bills and youre wondering when youre going to be out on the street begging for money so you can eat,

and all this, after you stuggled through five years of college and 10 years of experience in your carear field, and all you have to look forward to is that you hope you dont end out on the street,

at this point, the ideals start to get weak, and you just want your job back and you just want to live your life again.

Its the position so many of us are in right now, and the Republicans, at least on my end, are starting to look much less attractive this upcomming election.

In my view, their plans for a good economy just isnt working. I see a few rich people doing okay and a lot of average people struggling for survival.

I wish I could see it any other way, but looking back through history, you just cant deny the facts.

[benny 0]

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I may be simple minded but the week dollar is good for me.
Exports of farm products has been held down by the strong dollar for years. Now that the dollar is slipping exports have gone way up, and when that happens prices normaly follow.
As for inflation debt can be paid off more easily durring inflation. For example if I have a morgage for 100K at 4.25% (which I do) and I pay $850 per month. The amount of debt doesn't increase with inflation but the amount of dollars you get for your crops sold does. Not only is there more demand by world markets but comodity prices tend to follow inflation upwards. There for I now have more money to pay a debt that was secured in times of lower prices. The only catch is interest rates. However if you can pay back the debt at say twice the rate you had intended that shouldn't be a real problem.

I was under the impression that the EU had banned much of US agricultural products on the basis that they're all freaked out over genetic mods. In which case, having a relatively cheap product wouldn't matter.

Never go to a DZ strip show.

[jumpinfarmer 0]

Wrong!
It is true some things can't go to the E.U. but many others can. Besides they are only a small part of the world market. Much of our grain and meat go to Aisan countries. Our biggest competetors there are from S. America and Canada. There cheep curency has realy hurt us in recent years.

[benny 0]

I stand corrected, what's on the list and what isn't? I mean, I knew meat was ok, I don't think they've been doing much GM with that yet.

Never go to a DZ strip show.

[Gravitymaster 0]

You probably don't remember Jimmy Carter.

[jumpinfarmer 0]

Roundup ready corn is one as well as some countries don't want Roundup soybeans.
There are soybeans and corn that go there, just not the GMO typs.

[Tonto 1]

It's working! I just bought a G4. That would never have happened 2 years ago...
t

It's the year of the Pig.

[nacmacfeegle 0]

"That would never have happened 2 years ago..."

Yep, cheap American gear, good for you, good for me! Cheap holidays to Florida and Cali...its all good.

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He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me. Thomas Jefferson

[Erroll 80]

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It's working! I just bought a G4. That would never have happened 2 years ago...
t

Swings and roundabouts. Two years ago PISA were rubbing their hands in glee.

We (SA) sell our gold in Dollars but we also buy our crude in Dollars.

[mikkey 0]

If you look around the world and investigate which economies have been stable and consistently growing, you will find that they have certain characteristics:
- low inflation
- low to moderate interest rates
- budget near balance or in surplus
This does not mean that you have to have extreme low spending and low taxes as long as there is a balance.

The other key factor is what I would call “low volatility”: It is very bad for business if certain factors like exchange rates, interest rates, regulations etc. change a lot and quickly. In order for business’ to grow they need to be able to plan. You might think it is good for US exporters that the $ is weak, but that is not necessarily the case if the situation is volatile. If the US $ is now say 30% lower against the EURO then a couple of years ago, then it might be back again in 2 years. We have seen this kind of currency Yoyo before. It is difficult / risky to establish trade and company infrastructure with this kind of uncertainty and business’ will not invest in export opportunities if there is a big risk.

The US economy is anyway more consumer goods driven then most other economies – this makes it already more volatile then others. If you employ economic policies that induce great fluctuations in e.g. exchange rates (and the current administrations policies has contributed to this), you are just going to shoot yourself in the foot. Steady predictable policies that respect the ground rules of: low inflation, low interest rates and a balanced budget are the pillars of sustained growth.

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When people look like ants - pull. When ants look like people - pray.

[gremlin 0]

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$5 a gallon, anyone?

In Britain we dream of gas that cheap.
I think that the cheap USD is excellent. My trip to Elsinore / Perris is costing less and I can now afford the hour in the tunnel I want. If the price is cheap the tourists will switch and bring a lot of hard currency with them.

I'm drunk, you're drunk, lets go back to mine....

[billvon 3,107]

>This would be bad, Bill?

Not bad for me! But AggieDave might take issue with it.

[jumprunner 0]

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You probably don't remember Jimmy Carter.

He was a joke in the Oval Office, but during that time, at least where I lived in Houston, TX, the economy was booming with more jobs than people to fill them. But that was in Texas, I think the rest of the country at that time was suffering.

Im real suspicious of the Republicans and this Free Trade crap, which no average person likes, which his old man insisted on, which put a lot of people out of work. I dont know what makes me think it is being pushed again but not reported by the media.

But youre right, the peanuthead was a dumbass to put it lightly.