The euro keeps falling against the dollar!!!!!

[Neubarth]

THE EURO KEEPS FALLING AGAINST THE DOLLAR.

In July of 2008, the Euro was trading for $1.58 American Dollars.

As of this morning it was trading for $1.31 American Dollars.

That is a hell of a fall.

Since mid 2008 (two and a half years) it would have been prudent to have kept money in American denominated accounts. People who sold dollars to buy Euros two and a half years ago as many were doing have taken a hell of a beating if they held their position.

What this tells us is that the American currency is strong regardless of debt. Ditto Japan which is in far more debt when measured against their GDP.

The moral to the story? "Spend like a drunken sailor and your money will increase in value."

Reality is sometimes hard to understand.

 

[zzzz]

But the bottom line is that European goods are now cheaper thereby increasing the trade imbalance and costing more Amercian jobs!

 

[Neubarth]

But the bottom line is that European goods are now cheaper thereby increasing the trade imbalance and costing more Amercian jobs!

As I have posted for years on this forum against the prophets of doom that tell me I am wrong, the value of the Dollar is based upon the productivity of the United States. That is measured in Manufacturing output, Natural Resource output and Agricultural output.

Since we lead the world in these three, the Dollar will remain strong regardless of what the fools say.

 

[Baruch Menachem]

There was a time when the Euro was 78 cents.

Things change over time.

The Euro is still way ahead of where it was, and they are doing less stupid than they were.

 

[52ndStreet]

THE EURO KEEPS FALLING AGAINST THE DOLLAR.

In July of 2008, the Euro was trading for $1.58 American Dollars.

As of this morning it was trading for $1.31 American Dollars.

That is a hell of a fall.

Since mid 2008 (two and a half years) it would have been prudent to have kept money in American denominated accounts. People who sold dollars to buy Euros two and a half years ago as many were doing have taken a hell of a beating if they held their position.

What this tells us is that the American currency is strong regardless of debt. Ditto Japan which is in far more debt when measured against their GDP.

The moral to the story? "Spend like a drunken sailor and your money will increase in value."

Reality is sometimes hard to understand.

The worlds business is done in United States Dollars, not Euros. People all over the world still prefer the U.S. dollar over the Euro.
Many people want Dollars , not Euros.!Go to any foreign country outside of Europe, they will tell you no Euros accepted, only U.S. dollars$$.

 

[uscitizen]

Umm when I went to China several years ago i had to convert dollars to Yuan. the merchants did not accept dollars.

 

[zzzz]

Umm when I went to China several years ago i had to convert dollars to Yuan. the merchants did not accept dollars.

If things continue on the path they are on now the Yuan might be the currency of the future. It is expected with the current growth rates that around 2030 China will surpass the US as the worlds biggest economy. Whether this happens or not depends upon many factors of which we cannot project but is possible.

 

[xotoxi]

THE EURO KEEPS FALLING AGAINST THE DOLLAR.

In July of 2008, the Euro was trading for $1.58 American Dollars.

As of this morning it was trading for $1.31 American Dollars.

That is a hell of a fall.

Since mid 2008 (two and a half years) it would have been prudent to have kept money in American denominated accounts. People who sold dollars to buy Euros two and a half years ago as many were doing have taken a hell of a beating if they held their position.

What this tells us is that the American currency is strong regardless of debt. Ditto Japan which is in far more debt when measured against their GDP.

The moral to the story? "Spend like a drunken sailor and your money will increase in value."

Reality is sometimes hard to understand.

It's slut stoning time!!!

 

[Mini 14]

Care to compare to silver to ANY currency you can dream of?

What does that say?

 

[Neubarth]

But the bottom line is that European goods are now cheaper thereby increasing the trade imbalance and costing more Amercian jobs!

Only for a very short period of time. While that is happening, the US government is encouraging the FED to sell any Dollar Denominated Bonds and notes. The FED can always buy them back later at a lower price. Praise God for the FED. It is the Greatest thing that Godever created!

 

[Neubarth]

THE EURO KEEPS FALLING AGAINST THE DOLLAR.

In July of 2008, the Euro was trading for $1.58 American Dollars.

As of this morning it was trading for $1.31 American Dollars.

That is a hell of a fall.

Since mid 2008 (two and a half years) it would have been prudent to have kept money in American denominated accounts. People who sold dollars to buy Euros two and a half years ago as many were doing have taken a hell of a beating if they held their position.

What this tells us is that the American currency is strong regardless of debt. Ditto Japan which is in far more debt when measured against their GDP.

The moral to the story? "Spend like a drunken sailor and your money will increase in value."

Reality is sometimes hard to understand.

It's slut stoning time!!!

I keep on pointing out the reality that my school of economics teaches, and people deny it, BUT IT IS REAL and present before their eyes.

Only the United States of all the countries of the world is in this wonderful position thanks to the FED.

 

[uscitizen]

The dropping Euro will mean that European exports will rise and employment in the Eurozone will go up.

 

[uscitizen]

Neubarth has a school of economics????!!!!!!

Well now that just vapor locked me.

 

[CrusaderFrank]

LOL @ The Chinese who sold out of dollars for Euros.

But the reality is between the dollar and the Euro, we're just the last part of the ship to go down, so in comparison, we're a great deal.

EURO has the PIIGS, we have the Failed Leader

 

[Neubarth]

Neubarth has a school of economics????!!!!!!

Well now that just vapor locked me.

I have been explaining to you clowns how things work. Nobody has been able to refute what I have posted, so they resort to name calling which has always been indicative of an inferior mind.

I tell you guys the truth and point out the simple reality in the world economic system, and you call me names, but have never been able to refute reality. Get with the program and get an education.

 

[Neubarth]

Umm when I went to China several years ago i had to convert dollars to Yuan. the merchants did not accept dollars.

If things continue on the path they are on now the Yuan might be the currency of the future. It is expected with the current growth rates that around 2030 China will surpass the US as the worlds biggest economy. Whether this happens or not depends upon many factors of which we cannot project but is possible.

Oh my gosh! You people who are lost in international economics astound me. The US has worked for the past 37 years to bolster the Chinese economy. The projections back then were that we could lose half our manufacturing jobs but supplement them with Service Sector Jobs and we would be fine. Those projections are fairly accurate. Meanwhile we have helped China come down from "Partial employment" (Under Employment) of 70 percent of their population to approximately 40 percent of their population. Meanwhile we have underemployment of about 20 percent.

We are doing fine, even though we have recently experienced a recession. Not to worry, if necessary the Government can generate Service Sector Jobs by the millions. Hopefully we won't have to.

 

[expat_panama]

The dropping Euro will mean that European exports will rise and employment in the Eurozone will go up.

People say that and the reasoning is "well, everyone knows it".

Everyone's wrong. Dollar goes up or down, no affect on exports or unemployment. Euro goes up or down, no affect on exports or unemployment. Anyone who actually looks at exports (say, at the BEA's BEA International Economics Accounts) and exchange rates (like, at the FED's Exchange Rates - FRED - St. Louis Fed ) understands how it works, but most people just like to decide they're right without looking.

 

[uscitizen]

Ohh I agree with you that the USA is down the tubes and has been heading that way for a few decades.
However a school?

 

[ShackledNation]

What this tells us is that the American currency is strong regardless of debt. Ditto Japan which is in far more debt when measured against their GDP.

No. The statistics only give us one bit of information. The US dollar has a higher value than the Euro. It does not mean our currency is strong. It only means everyone else is worse. For example, the US dollar could lose 50% and the Euro could lose 60%. It would appear our dollar has gotten stronger by 10%, but that is not the case at all.

The moral to the story? "Spend like a drunken sailor and your money will increase in value."

Reality is sometimes hard to understand.

What school of economics are you, exactly?

If the dollar appreciates against the Euro, there are 3 different possibilities:
1. Both the dollar and the Euro are increasing in value, but the dollar is increasing in value faster.
2. Only the dollar is increasing in value, but the Euro is either not increasing or decreasing in value.
3. Both the dollar and the Euro are decreasing in value, but the dollar is decreasing in value slower.

Our current situation is number 3.

 

[ShackledNation]

But the bottom line is that European goods are now cheaper thereby increasing the trade imbalance and costing more Amercian jobs!

As I have posted for years on this forum against the prophets of doom that tell me I am wrong, the value of the Dollar is based upon the productivity of the United States. That is measured in Manufacturing output, Natural Resource output and Agricultural output.

Since we lead the world in these three, the Dollar will remain strong regardless of what the fools say.

What does value mean when referencing the dollar? Why is the dollar valuable?

Rhetorical questions. The dollar has value because it is a medium of exchange. It has value because people can exchange it for goods and services. Therefore, the value of the dollar is its purchasing power, not aggregates of economic production.

The purchasing power of the dollar is decreasing. The reason it appreciates against the Euro is because the purchasing power of the Euro is decreasing faster.