Journal Zarf's Journal: Exchange rate positively killing me. 13
If you have been following it, the exchange rate between the US Dollar and the Euro spiked this month. I'm not laughing about it at all. It's killing me. I'm going to have to take drastic steps now.
Management (Score:1)
You're probably not the only person this is affecting.
Who knows, maybe they have a way of dealing with this.
But by all means, keep your ass covered.
You think it is bad there? (Score:2)
FAX the FOMC (Score:2)
Re:FAX the FOMC (Score:2)
I'm pretty sure Greenspan is bright enough to laugh at some idiot asking him to screw American exporters in order to benefit their foreign counterparts. I have less faith in the ability of Congresscritters to do the same, which is one reason I'm
Re:FAX the FOMC (Score:2)
The U.S. has a large trade deficit, which means we import more than we export. Although the exporters are glad about the present situation and rapidly issuing press releases to remind everyone of how fantastic it is, the far more significant importers are trying to be invisible because they are the ones who are really being screwed and drawing attention
Re:FAX the FOMC (Score:3, Insightful)
Yes. Changing Forex rates are a corrective measure: a lower priced dollar applies pressure to reduce this imbalance. Or, as you view it, screws the importers (foreign companies selling to the US) to the benefit of US employers. Good for the US, bad for the Eurozone and Japan.
Although the exporters are glad about the present situation and rapidly issuing press releases to remind everyone of how fantastic it is, the far more sig
Re:FAX the FOMC (Score:2)
By importers, I mean U.S. companies, such as nearly all computer manufacturers, who re-sell imported goods.
Consumer spending is 2/3rds of the U.S. economy. Many of the importers being impacted no longer have any significant domestic source of their components, e.g., for electronics and textiles.
Re:FAX the FOMC (Score:2)
Most of it yours, it seems; even the biggest of the "importers" you seem so worried about are doing pretty well, according to the financial information they regularly publish.
Unemployment in European countries with well-managed job training programs, such a Sweden, is more than 2% lower than in the U.S. at present.
No, Sweden's just at another point in their economic cycle. Their present unemployment is indeed the 4% you found - but for them, that's a low point,
Re:FAX the FOMC (Score:2)
Yeah; we'll see what happens when their currency futures transacton hedging contracts start expiring over the next nine months.
Re:FAX the FOMC (Score:2)
"When an importer of foreign produce gets screwed in favor of a US company producing goods itself, the net result is a benefit to the US: more work inthe US, less work outside."
What about oil? Can all imported oil be replaced by domestic oil? I guess we're stuck buying oil with weak dollars.
Maybe that's how the U.S. will achieve energy independence. First, cut taxes and increase spending. Don't mind the deficits. When foreigners realize that the debt can't be repaid, then the dollar will become worthles
Re:FAX the FOMC (Score:2)
Since OPEC trades in USD anyway, it makes very little difference (although it has pushed oil prices up a bit).
Maybe that's how the U.S. will achieve energy independence. First, cut taxes and increase spending. Don't mind the deficits. When foreigners realize that the debt can't be repaid, then the dollar will become worthless. The U.S. won't be able to afford foreign oil. Energy independenc
I am loving it. (Score:2)
Not wanting to scare you... (Score:2)
At that rate, the Euro equivalent would be EUR 1 = $1.50 or so.
Still, I get paid in dollars by some of my clients, so yes, I'm feeling the pain nowadays, too. Recently a client sent $1000, and all I got was EUR 750 or so. Ouch.
And the prediction is that it'll continue to get worse: the Fed isn't really in a mood to prop up the dollar, curre