On Apr 22, 7:00=A0am, Michae...@[EMAIL PROTECTED]
wrote:
> On Apr 21, 1:07 pm, Jerry Kraus <jkraus_1...@[EMAIL PROTECTED]
> wrote:
>
>
>
>
>
> > On Apr 21, 12:59 pm, Michae...@[EMAIL PROTECTED]
wrote:
>
> > > On Apr 16, 12:01 pm, Jerry Kraus <jkraus_1...@[EMAIL PROTECTED]
> wrote:
>
> > > > On Apr 16, 10:30 am, ZerkonX <Z...@[EMAIL PROTECTED]
> wrote:
>
> > > > > On Tue, 15 Apr 2008 08:27:34 -0700, Jerry Kraus wrote:
> > > > > > The patterns are strikingly parallel from the beginning of the
c=
entury
> > > > > > up to the 1970s.
>
> > > > > Gold Standard go bye-bye. Money becomes separated from a
reference=
d value
> > > > > standard to a value determined by control and manipulation.
>
> > > > > The rest, as they say, is history.
>
> > > > It's curious how people in the U.S. say we're not in a "Bear
Market"=
,
> > > > when the value of the U.S. currency has dropped by 50% in the last
> > > > five years on international money markets, and the Stock Market is
> > > > just about at the same level it was five years ago. =A0That's a
50% =
drop
> > > > in effective market capitalization. =A0Not counting inflation.
>
> > > American (who are not involved in currency exchange hysteria) do not
> > > measure their wealth based off of the Euro.
>
> > > The measure it based off of what in can buy for them. =A0There has
not=
> > > been a 50% drop in purchasing power.- Hide quoted text -
>
> > > - Show quoted text -
>
> > There has been a 50% drop in purchasing power of the dollar on
> > international markets as compared to the Euro. =A0If you are
purchasing
> > only American products in the United States, the drop in purchasing
> > power is not as noticeable. =A0As long as you limit yourself to
> > purchasing American products in the U.S.
>
> Once again a false argument. =A0Most Americans have not seen a 50%
> increase in the cost of the majority of the goods and services they
> consume.
>
> While 5-10% of the average families budget has seen a large price
> increase, most of the budget has seen only a modest increase in cost.
>
> The falling value of the dollar is a much bigger problem for those
> im****ting goods into the US then it is for the consumer. =A0And it acts
> as a stimulus for American business. =A0 It is an issue, but it is not
> our biggest issue.- Hide quoted text -
>
> - Show quoted text -
I agree with the general content of your comments. The weakened dollar
is good for American ex****ts and it is good for tourists visiting the
US.
Let's not lose sight of the fact that the weakened dollar contributes
to higher prices at the gas pump. Oil is trading at over $117 per
barrel; but 117 dollars is 73.17 euros (1.00 Euro =3D 1.60 U.S.
Dollars). The low value of the dollar is of economic concern. If the
dollar and euro were evenly matched at 1 to 1, the price of gas at the
pump would be $2.50 (4 US Dollars =3D 2.50 Euros). Granted, that is a
bit overstated, because there would be other impacts of a strengthened
dollar, but the point is that the weakened dollar is having a
significant impact of $1 or more per gallon of gas.
High gas prices mean higher prices in the supermarket and tighter
budgets for American consumers. The weakened dollar is having a big
impact on our economy even if it isn't our "biggest" issue.
The EU is on the cusp of their own housing market correction and
credit crisis. Soon, the euro will weaken and the dollar will
strengthen as our own economy begins to recover.
-solon fox
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