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Strong dollar hurting U.S. companies

Discussion in 'Sports and News' started by Stitch, Jul 17, 2012.

  1. Stitch

    Stitch Active Member

    Strong dollar or window dressing as companies blame strong dollar for lower overseas revenues.

    http://online.wSportsJournalists.com/article/BT-CO-20120712-713092.html
     
  2. Starman

    Starman Well-Known Member

    Why doesn't somebody do something to, uhmmm, weaken the dollar? Why hasn't he done it already!!!

    I am con ... conf .... constipated.
     
  3. Bubbler

    Bubbler Active Member

    Buh, but, I thought the dollar was weak! I thought QE2, etc., made it so!
     
  4. The Big Ragu

    The Big Ragu Moderator Staff Member

    We have done everything possible to weaken the dollar. The problem is that the dollar is winning a "least ugly pageant," mostly against the Euro, which is on the verge of collapse.

    That doesn't mean the dollar is strong, EXCEPT compared to the Euro. But they are both shit, even if the dollar is less smelly shit. The dollar has been considerably weakened through destructive monetary policy.

    You can't dump all over the dollar the way we have, and then complain that the dollar is too strong. Even if the Euro collapse is holding off the effects from being seen, those effects are in the works.

    The dollar is overbought. Which was a point in a doomsday commentary I read earlier today: http://www.marketwatch.com/story/how-bernanke-will-cause-the-next-crash-before-2014-2012-07-17?link=MW_popular

    I think it is worth reading. It may not be the exact script we are going to see, down to the minute, but it is the general future we are looking at as a consequence of short-sighted monetary policy mixed with a complete lack of fiscal discipline.
     
  5. Zeke12

    Zeke12 Guest

    I trust this means it's time to buy gold.
     
  6. Stitch

    Stitch Active Member

    Don't real estate agents say the same thing about buying a home? It's never the wrong time, according to every real estate agent quoted in a newspaper.
     
  7. crimsonace

    crimsonace Active Member

    Compared to the Euro and the pound, the USD is in pretty good shape, as it has gained very nicely against those two European currencies (but the Eurozone is currently in a significantly worse economic crisis than what we've dealt with in years).

    However, compared to the Japanese yen and the Canadian dollar and the Chinese yuan (which isn't the greatest example, as the yuan is grossly manipulated), the USD has been weakening pretty steadily over the past 10 years, especially the last 5.

    Those are our primary markets -- Canada, Europe, China and Japan. However, with China and Japan, those are primarily import markets, where a weak dollar hurts us (which is why Obama -- correctly -- has been calling out the Chinese for currency manipulation) since we have to pay more dollars per unit of local currency to buy goods. Europe is an export market for the U.S., where a strong dollar hurts us, since that drives prices of U.S. exports up. Either way, it's not good.
     
  8. Bubbler

    Bubbler Active Member

    I stopped reading because it was very poorly-written and incoherent to anyone outside of the cheer-group that keeps warning us of imminent doom.
     
  9. The Big Ragu

    The Big Ragu Moderator Staff Member

    Well, if you do ever care to expand your reading to things you don't deem part of a "cheer-group," there is plenty out there for you. Perhaps Nouriel Roubini garners more of your respect. It's not as if he cheer leads imminent doom. He just points out what others don't want to acknowledge. And he has obviously been correct in the past.

    http://www.reuters.com/article/2012/07/17/us-roubini-outlook-idUSBRE86G1C820120717

    Pointing out reality, and actually getting angry about it over the past 5 years as a crisis built up and central bankers and policy makers made it worse despite pleas not to, doesn't amount to being a part of a cheer group. It's simply pointing out reality -- a sad reality that was entirely preventable.
     
  10. jackfinarelli

    jackfinarelli Member

    If you are a company that does the majority of your business by making goods here and selling them overseas, a strong dollar will make profits harder to come by.

    If you are a company that does the majority of your business by buying goods overseas and selling them here, a strong dollar will make profits easier to come by.

    Tomato - - - To-MAH-to.

    If you are a traveler going from the US to an overseas destination with a "weaker currency as compared to the dollar" you will love the prices over there.

    If you are a traveler going from the US to an overseas destination with a "strong currency as compared to the dollar" you will be shocked at how expensive everything is.
     
  11. crimsonace

    crimsonace Active Member

    ... which is why I loved the fact that we went on our honeymoon in Canada at a point where the CAD was at its weakest compared to the USD. It was something like 65 cents on the dollar. I got a full lobster dinner for 2 for $20US one afternoon and we stayed in a pretty elegant B&B in Montreal for about $40US a night. In 2001.

    We haven't been back to Canada since they've been at parity with the USD :).
     
  12. Stitch

    Stitch Active Member

    Western Civilization is saved for another week as the Bundestag approves a bailout of Spanish banks. What is the next thing that will cause Europe to crash?

    http://www.bbc.co.uk/news/world-europe-18911073
     
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