Comments on: Why Is The Dollar Falling? http://amateurassetallocator.com/2008/08/14/why-is-the-dollar-falling/ Amateur Asset Allocator Mon, 15 Mar 2010 11:01:22 +0000 http://wordpress.org/?v=2.9 hourly 1 By: It’s My Nine-Monthiversary! | Amateur Asset Allocator http://amateurassetallocator.com/2008/08/14/why-is-the-dollar-falling/comment-page-1/#comment-2209 It’s My Nine-Monthiversary! | Amateur Asset Allocator Sat, 08 Nov 2008 21:16:03 +0000 http://amateurassetallocator.com/?p=209#comment-2209 [...] Why Is The Dollar Falling? [...] [...] Why Is The Dollar Falling? [...]

]]> By: levita http://amateurassetallocator.com/2008/08/14/why-is-the-dollar-falling/comment-page-1/#comment-2091 levita Fri, 24 Oct 2008 16:47:07 +0000 http://amateurassetallocator.com/?p=209#comment-2091 Monetary policy Monetary policy

]]> By: “Made In America” Is Back | Amateur Asset Allocator http://amateurassetallocator.com/2008/08/14/why-is-the-dollar-falling/comment-page-1/#comment-1895 “Made In America” Is Back | Amateur Asset Allocator Thu, 18 Sep 2008 11:01:03 +0000 http://amateurassetallocator.com/?p=209#comment-1895 [...] lower dollar and high oil prices aren’t all bad news.  According to the US Department of Commerce, [...] [...] lower dollar and high oil prices aren’t all bad news.  According to the US Department of Commerce, [...]

]]> By: Carnival Time! | artofthecoupon.com http://amateurassetallocator.com/2008/08/14/why-is-the-dollar-falling/comment-page-1/#comment-1674 Carnival Time! | artofthecoupon.com Tue, 26 Aug 2008 12:32:00 +0000 http://amateurassetallocator.com/?p=209#comment-1674 [...] of whether frugal people regret being frugal and Amateur Asset Allocator’s explanation of why the dollar is falling. [...] [...] of whether frugal people regret being frugal and Amateur Asset Allocator’s explanation of why the dollar is falling. [...]

]]> By: Carnival of Personal Finance #167 - Highlights from the Beijing 2008 Olympics — Broke Grad Student http://amateurassetallocator.com/2008/08/14/why-is-the-dollar-falling/comment-page-1/#comment-1666 Carnival of Personal Finance #167 - Highlights from the Beijing 2008 Olympics — Broke Grad Student Mon, 25 Aug 2008 11:07:16 +0000 http://amateurassetallocator.com/?p=209#comment-1666 [...] Why Is The Dollar Falling? [...] [...] Why Is The Dollar Falling? [...]

]]> By: Joe http://amateurassetallocator.com/2008/08/14/why-is-the-dollar-falling/comment-page-1/#comment-1619 Joe Sun, 17 Aug 2008 16:51:41 +0000 http://amateurassetallocator.com/?p=209#comment-1619 There is another reason for this problem - other countries artificially keeping their currencies low against the US dollar. Japan has done this since WWII (and built a world class economy on it) and China is doing it today. By keeping their currencies artificially low compared to the US dollar, their products are cheaper in the US. This has resulted in the mass exodus of manufacturing jobs out of the US. Granted, some of this would happen on a smaller scale no matter what, due to cheaper labor rates, but why is it the US dollar has fallen 10% against the Chinese currency vs. almost 100% vs. the Euro? Because it keeps Chinese products cheap here. Had the same market forces that affected the dollar to euro exchange allowed to affect the Chinese currency to dollar exchange, Chinese made goods would be almost twice as expensive here now. Markets would correct, more goods would be made here and less would be bought from China. China would be sharing in this recession instead of leeching off of the US as their economy storms ahead at double digit rates and companies would not be shipping mass numbers of jobs to China. (I see it, literally, every day in my job.) So much for the Invisible Hand when governments intervene to turn that Hand aside and when our government doesn't have the initiative or the political courage to do something about it... There is another reason for this problem – other countries artificially keeping their currencies low against the US dollar. Japan has done this since WWII (and built a world class economy on it) and China is doing it today. By keeping their currencies artificially low compared to the US dollar, their products are cheaper in the US. This has resulted in the mass exodus of manufacturing jobs out of the US. Granted, some of this would happen on a smaller scale no matter what, due to cheaper labor rates, but why is it the US dollar has fallen 10% against the Chinese currency vs. almost 100% vs. the Euro? Because it keeps Chinese products cheap here. Had the same market forces that affected the dollar to euro exchange allowed to affect the Chinese currency to dollar exchange, Chinese made goods would be almost twice as expensive here now. Markets would correct, more goods would be made here and less would be bought from China. China would be sharing in this recession instead of leeching off of the US as their economy storms ahead at double digit rates and companies would not be shipping mass numbers of jobs to China. (I see it, literally, every day in my job.) So much for the Invisible Hand when governments intervene to turn that Hand aside and when our government doesn’t have the initiative or the political courage to do something about it…

]]> By: Weekend Reading: August 17, 2008 | Moolanomy http://amateurassetallocator.com/2008/08/14/why-is-the-dollar-falling/comment-page-1/#comment-1618 Weekend Reading: August 17, 2008 | Moolanomy Sun, 17 Aug 2008 12:41:36 +0000 http://amateurassetallocator.com/?p=209#comment-1618 [...] Why Is The Dollar Falling? at Amateur Asset Allocator — Kyle shares two reasons why the dollar is falling and how to alleviate the problem. [...] [...] Why Is The Dollar Falling? at Amateur Asset Allocator — Kyle shares two reasons why the dollar is falling and how to alleviate the problem. [...]

]]> By: Jennifer Lynn http://amateurassetallocator.com/2008/08/14/why-is-the-dollar-falling/comment-page-1/#comment-1614 Jennifer Lynn Fri, 15 Aug 2008 05:19:44 +0000 http://amateurassetallocator.com/?p=209#comment-1614 Hi Kyle, I really enjoyed reading this post and agree with upping the interest rates and allowing the system to cleanse itself out. It seems ridiculous to keep prolonging the inevitable and making the outcome even worse. I'm sure the economic stimulus checks served their purpose in forcing the recession into 2009. Unless, of course, there's a new batch coming our way through the pipelines in time for the holidays. Hi Kyle,

I really enjoyed reading this post and agree with upping the interest rates and allowing the system to cleanse itself out. It seems ridiculous to keep prolonging the inevitable and making the outcome even worse.

I’m sure the economic stimulus checks served their purpose in forcing the recession into 2009. Unless, of course, there’s a new batch coming our way through the pipelines in time for the holidays.

]]> By: Four Pillars http://amateurassetallocator.com/2008/08/14/why-is-the-dollar-falling/comment-page-1/#comment-1613 Four Pillars Fri, 15 Aug 2008 02:49:11 +0000 http://amateurassetallocator.com/?p=209#comment-1613 I think the important thing is that it is indeed falling against the Canadian dollar which makes trips to the US cheaper for me! Congrats on the new network - I think you will benefit from it. Mike I think the important thing is that it is indeed falling against the Canadian dollar which makes trips to the US cheaper for me!

Congrats on the new network – I think you will benefit from it.

Mike

]]> By: MoneyEnergy http://amateurassetallocator.com/2008/08/14/why-is-the-dollar-falling/comment-page-1/#comment-1610 MoneyEnergy Thu, 14 Aug 2008 17:50:55 +0000 http://amateurassetallocator.com/?p=209#comment-1610 It's not necessarily "buy American" that's the solution to the US trade deficit. What should ideally be happening is that the US produces more and exports more to other countries. Protectionist and isolationist economic measures just can't work anymore in the global economy. I always get irked when I see those bumper stickers that say "Out of a job yet? Keep Buying Foreign!" It shows ignorance, because every product and service (not to mention innovation, skill and manpower) we all use today is a mix of "domestic" and "foreign." I saw the sticker yesterday on a GM truck (in Canada) that was made in the U.S. How ironic for that driver! However, in the end what is essential if the greenback isn't to truly collapse is that the US pays off its massive debts. It seems that the Fed is trying to inflate its way out of paying off its debts. It’s not necessarily “buy American” that’s the solution to the US trade deficit. What should ideally be happening is that the US produces more and exports more to other countries.

Protectionist and isolationist economic measures just can’t work anymore in the global economy.

I always get irked when I see those bumper stickers that say “Out of a job yet? Keep Buying Foreign!”

It shows ignorance, because every product and service (not to mention innovation, skill and manpower) we all use today is a mix of “domestic” and “foreign.” I saw the sticker yesterday on a GM truck (in Canada) that was made in the U.S. How ironic for that driver!

However, in the end what is essential if the greenback isn’t to truly collapse is that the US pays off its massive debts. It seems that the Fed is trying to inflate its way out of paying off its debts.

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