For Christian...
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After yesterday's discussion about the value of the US dollar... http://www.reuters.com/article/idUSN1912419520101019 GLOBAL MARKETS-Dollar gains, stocks slip after China's rate move The Australian dollar and other commodity-linked currencies fell sharply after China's move, sparking a sell-off in perceived riskier currencies. The dollar was up against a basket of major currencies, with the U.S. Dollar Index .DXY up 1.26 percent at 77.904. The euro extended losses against the dollar on the news, but the Australian dollar was one of the main losers, with investors concerned the move could dampen growth in China, hitting commodity-linked economies in particular. Happy now? ;P Didn't I tell you that China's economic policies are going to have significant effects on world currencies? This is a drop in the bucket compared to what would happen if western countries forced China to operate within the same rules that we do.
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After yesterday's discussion about the value of the US dollar... http://www.reuters.com/article/idUSN1912419520101019 GLOBAL MARKETS-Dollar gains, stocks slip after China's rate move The Australian dollar and other commodity-linked currencies fell sharply after China's move, sparking a sell-off in perceived riskier currencies. The dollar was up against a basket of major currencies, with the U.S. Dollar Index .DXY up 1.26 percent at 77.904. The euro extended losses against the dollar on the news, but the Australian dollar was one of the main losers, with investors concerned the move could dampen growth in China, hitting commodity-linked economies in particular. Happy now? ;P Didn't I tell you that China's economic policies are going to have significant effects on world currencies? This is a drop in the bucket compared to what would happen if western countries forced China to operate within the same rules that we do.
The Indian software companies must be pissed off at the dollar-drop. The INR changed from 47.5 to a dollar to almost 44 a dollar. That's a 7% dip in profit for them (or rather earnings). I remember last year how it dropped to something really low (may have been 38 a dollar) and the Indian reserve bank did some currency-manipulation magic to prevent the rupee from gaining over the dollar. If today's trend continues they may have to do that again.
Regards, Nish
My technology blog: voidnish.wordpress.com Code Project Forums : New Posts Monitor This application monitors for new posts in the Code Project forums.
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After yesterday's discussion about the value of the US dollar... http://www.reuters.com/article/idUSN1912419520101019 GLOBAL MARKETS-Dollar gains, stocks slip after China's rate move The Australian dollar and other commodity-linked currencies fell sharply after China's move, sparking a sell-off in perceived riskier currencies. The dollar was up against a basket of major currencies, with the U.S. Dollar Index .DXY up 1.26 percent at 77.904. The euro extended losses against the dollar on the news, but the Australian dollar was one of the main losers, with investors concerned the move could dampen growth in China, hitting commodity-linked economies in particular. Happy now? ;P Didn't I tell you that China's economic policies are going to have significant effects on world currencies? This is a drop in the bucket compared to what would happen if western countries forced China to operate within the same rules that we do.
Meh...not seeing it here in Canada, our dollar is still nearly at par with the US dollar right now (as close as makes no real difference) according to Google. You had my hopes up there for a second. :) Maybe the Canadian dollar is a little more solid than the AUS dollar.
“If you want to build a ship, don't drum up people together to collect wood and don't assign them tasks and work, but rather teach them to long for the endless immensity of the sea” - Antoine de Saint-Exupery
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The Indian software companies must be pissed off at the dollar-drop. The INR changed from 47.5 to a dollar to almost 44 a dollar. That's a 7% dip in profit for them (or rather earnings). I remember last year how it dropped to something really low (may have been 38 a dollar) and the Indian reserve bank did some currency-manipulation magic to prevent the rupee from gaining over the dollar. If today's trend continues they may have to do that again.
Regards, Nish
My technology blog: voidnish.wordpress.com Code Project Forums : New Posts Monitor This application monitors for new posts in the Code Project forums.
The larger and more sophisticated companies will have hedged against that, I would think.
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Meh...not seeing it here in Canada, our dollar is still nearly at par with the US dollar right now (as close as makes no real difference) according to Google. You had my hopes up there for a second. :) Maybe the Canadian dollar is a little more solid than the AUS dollar.
“If you want to build a ship, don't drum up people together to collect wood and don't assign them tasks and work, but rather teach them to long for the endless immensity of the sea” - Antoine de Saint-Exupery
I think it's more that the Canadian economy is tightly coupled to the US economy; while the Australian economy coupled to Chinese *imports* (coal, iron ore, etc) and will thus take a hit from the Chinese economy slowing down.
3x12=36 2x12=24 1x12=12 0x12=18
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After yesterday's discussion about the value of the US dollar... http://www.reuters.com/article/idUSN1912419520101019 GLOBAL MARKETS-Dollar gains, stocks slip after China's rate move The Australian dollar and other commodity-linked currencies fell sharply after China's move, sparking a sell-off in perceived riskier currencies. The dollar was up against a basket of major currencies, with the U.S. Dollar Index .DXY up 1.26 percent at 77.904. The euro extended losses against the dollar on the news, but the Australian dollar was one of the main losers, with investors concerned the move could dampen growth in China, hitting commodity-linked economies in particular. Happy now? ;P Didn't I tell you that China's economic policies are going to have significant effects on world currencies? This is a drop in the bucket compared to what would happen if western countries forced China to operate within the same rules that we do.
Isn't a weak dollar actually good for the common man in the US? Makes it cheaper to build stuff in the US and therefore more jobs get created in the US? It may not be too good, however, for the large corporations - as they will need to spend more to import raw materials etc... Sounds like a catch-22..Any experts on this topic here?
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Isn't a weak dollar actually good for the common man in the US? Makes it cheaper to build stuff in the US and therefore more jobs get created in the US? It may not be too good, however, for the large corporations - as they will need to spend more to import raw materials etc... Sounds like a catch-22..Any experts on this topic here?
retZ wrote:
Isn't a weak dollar actually good for the common man in the US? Makes it cheaper to build stuff in the US and therefore more jobs get created in the US?
In theory... yes. However, China doesn't play by the same rules as others. Their currency is not traded and thus doesn't fluctuate compared to others. A weak dollar may help US companies compete against European companies but nothing changes in regards to Chinese companies and thats where we import the majority of stuff from. The US government is in SERIOUS debt, which China buys so our government is afraid to play hardball with them. Catch 22 indeed!
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Isn't a weak dollar actually good for the common man in the US? Makes it cheaper to build stuff in the US and therefore more jobs get created in the US? It may not be too good, however, for the large corporations - as they will need to spend more to import raw materials etc... Sounds like a catch-22..Any experts on this topic here?
A weak dollar means higher prices, lost savings. In a year or so it will cost 10 dollars for a loaf of bread.
Invisible Empire: A New World Order Defined (High Quality 2:14:01)[^] Watch the Fall of the Republic (High Quality 2:24:19)[^] The Truthbox[^]
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A weak dollar means higher prices, lost savings. In a year or so it will cost 10 dollars for a loaf of bread.
Invisible Empire: A New World Order Defined (High Quality 2:14:01)[^] Watch the Fall of the Republic (High Quality 2:24:19)[^] The Truthbox[^]
and $10,000 for a gun, maybe it's a good thing.
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A weak dollar means higher prices, lost savings. In a year or so it will cost 10 dollars for a loaf of bread.
Invisible Empire: A New World Order Defined (High Quality 2:14:01)[^] Watch the Fall of the Republic (High Quality 2:24:19)[^] The Truthbox[^]
there is essentially no inflation right now, and nobody in the US buys imported bread. so no, probably not.
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A weak dollar means higher prices, lost savings. In a year or so it will cost 10 dollars for a loaf of bread.
Invisible Empire: A New World Order Defined (High Quality 2:14:01)[^] Watch the Fall of the Republic (High Quality 2:24:19)[^] The Truthbox[^]
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After yesterday's discussion about the value of the US dollar... http://www.reuters.com/article/idUSN1912419520101019 GLOBAL MARKETS-Dollar gains, stocks slip after China's rate move The Australian dollar and other commodity-linked currencies fell sharply after China's move, sparking a sell-off in perceived riskier currencies. The dollar was up against a basket of major currencies, with the U.S. Dollar Index .DXY up 1.26 percent at 77.904. The euro extended losses against the dollar on the news, but the Australian dollar was one of the main losers, with investors concerned the move could dampen growth in China, hitting commodity-linked economies in particular. Happy now? ;P Didn't I tell you that China's economic policies are going to have significant effects on world currencies? This is a drop in the bucket compared to what would happen if western countries forced China to operate within the same rules that we do.
Mike Mullikin wrote:
to operate within the same rules that we do.
Given the various debacles here in the US, it doesn't seem like we're pretty rule-less! Marc
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retZ wrote:
Isn't a weak dollar actually good for the common man in the US? Makes it cheaper to build stuff in the US and therefore more jobs get created in the US?
In theory... yes. However, China doesn't play by the same rules as others. Their currency is not traded and thus doesn't fluctuate compared to others. A weak dollar may help US companies compete against European companies but nothing changes in regards to Chinese companies and thats where we import the majority of stuff from. The US government is in SERIOUS debt, which China buys so our government is afraid to play hardball with them. Catch 22 indeed!
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If you look at it, China is in bigger trouble than the US..If the US debt goes "bad", then it takes down both the US and Chinese economy (and probably the rest of the world as well)
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Isn't a weak dollar actually good for the common man in the US? Makes it cheaper to build stuff in the US and therefore more jobs get created in the US? It may not be too good, however, for the large corporations - as they will need to spend more to import raw materials etc... Sounds like a catch-22..Any experts on this topic here?
a weak currency increases the competitiveness of domestic products, while decreasing that of imported products. So while it will boost some domestic manufacturing (manufactures dependent on imports can end up worse off), it will also increase the cost of the cheap junk sold in Walmarx and the price of gas.
3x12=36 2x12=24 1x12=12 0x12=18
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The Indian software companies must be pissed off at the dollar-drop. The INR changed from 47.5 to a dollar to almost 44 a dollar. That's a 7% dip in profit for them (or rather earnings). I remember last year how it dropped to something really low (may have been 38 a dollar) and the Indian reserve bank did some currency-manipulation magic to prevent the rupee from gaining over the dollar. If today's trend continues they may have to do that again.
Regards, Nish
My technology blog: voidnish.wordpress.com Code Project Forums : New Posts Monitor This application monitors for new posts in the Code Project forums.
It hit 39 in late 2007, maybe extended to early 2008, certainly not last year. If the USD sinks, their earnings in INR would be hit, but the ones listed on American exchanges would prosper because they would also have significant revenues in EUR and GBP, which would translate into handsome gains in USD. There are several reasons (NOT ones I gained in hindsight) why the INR spike of 2007 was an aberration that's unlikely to happen again, but I'm kinda pressed for time here in London. IMO, there will be no cause for panic until the INR hits 42. If it hits 40, _then_ the alarm bells will go off.
Cheers, विक्रम (Got my troika of CCCs!) "We have already been through this, I am not going to repeat myself." - fat_boy, in a global warming thread :doh:
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If you look at it, China is in bigger trouble than the US..If the US debt goes "bad", then it takes down both the US and Chinese economy (and probably the rest of the world as well)
retZ wrote:
If the US debt goes "bad", then it takes down both the US and Chinese economy
Given that China is the single biggest holder of US debt, I doubt they would let that happen. If they do, they would have some VERY good reasons. Military conflict comes to mind.
Cheers, विक्रम (Got my troika of CCCs!) "We have already been through this, I am not going to repeat myself." - fat_boy, in a global warming thread :doh: