Yen!

Error message

Deprecated function: implode(): Passing glue string after array is deprecated. Swap the parameters in drupal_get_feeds() (line 394 of /var/www/pied-piper.ermarian.net/includes/common.inc).
AuthorTopic: Yen!
Desert Pl@h
Lifecrafter
Member # 1768
 written Saturday, November 27 2004 09:45 Profile #0
I wonder, could someone quickly explain why it matters that a dollar is worth less than a euro?

--------------------
"Oh, North Wind, why frighten others?
In Nature's family all are brothers.
Puff and blow and wheeze and hiss;
You can't frighten Shingebiss.
Bring your frost and ice and snow;
I'm still free to come and go.
You can never frighten me,
One who never fears is FREE!"
-Shingebiss, the mighty duck
Posts: 830 | Registered: Tuesday, August 20 2002 07:00
Thuryl
...b10010b...
Member # 869
 written Saturday, November 27 2004 12:25 Profile Homepage #1
Exchange rate alone doesn't mean much; the important thing is how it changes over time. What matters is that if you want to travel to or trade with Europe, your money isn't worth as much as it was a while ago.

--------------------
My BoE Page
Bandwagons are fun!
Roots
Hunted!
Posts: 9973 | Registered: Saturday, March 30 2002 08:00
Drew
By Committee
Member # 4233
 written Monday, December 6 2004 12:52 Profile #2
When the dollar is weaker relative to the euro, imports from Europe (which are purchased in euros) cost more. The usual result of this is that US consumers then are more likely to purchase products manufactured in the US. This in theory would bolster the US economy by increasing demand for US goods, leading to an increase in employment/wages/whatever. HOWEVER, a country can't devalue its way to prosperity.
Posts: 2242 | Registered: Saturday, April 10 2004 07:00
Dragyn Bob
Agent
Member # 14
 written Monday, December 6 2004 12:55 Profile #3
Unless you're China... ;)

--------------------
Dragyn Bob

"Abandon all hope, ye who enter here!"-The Divine Comedy
Posts: 1481 | Registered: Thursday, September 27 2001 07:00
Or else o'erleap.
Law Bringer
Member # 335
 written Monday, December 6 2004 13:03 Profile Homepage #4
This is a truly bizarre topic. It resides in the RWG section, yet it is neither a horror in the eyes of man nor relevant to the games. I find myself at a loss.

—Alorael, who will send this off to General. He'll leave a locked copy behind, too, because his collection is getting old and dusty.
Posts: 14579 | Registered: Saturday, December 1 2001 08:00
Drew
By Committee
Member # 4233
 written Monday, December 6 2004 13:12 Profile #5
quote:
Originally written by Dragyn Bob:

Unless you're China... ;)
Even China will have to break its peg on the dollar eventually because of market pressures. It can only remain undervalued for so long.
Posts: 2242 | Registered: Saturday, April 10 2004 07:00
Desert Pl@h
Lifecrafter
Member # 1768
 written Monday, December 6 2004 14:06 Profile #6
Hey, I stumped Alorael! :eek:

BTW, why would a totally communist society need money? (not that China is, of course)

And communism is bad.

--------------------
"Oh, North Wind, why frighten others?
In Nature's family all are brothers.
Puff and blow and wheeze and hiss;
You can't frighten Shingebiss.
Bring your frost and ice and snow;
I'm still free to come and go.
You can never frighten me,
One who never fears is FREE!"
-Shingebiss, the mighty duck
Posts: 830 | Registered: Tuesday, August 20 2002 07:00
Arancaytar
Law Bringer
Member # 2984
 written Monday, December 6 2004 15:26 Profile Homepage #7
The thing is, a local industry "bolstered" by in-land demand might be stronger locally, but at the same time the price of exports decreases. On one hand, this raises demand for exports - on the other, it makes those exported products cheaper, so there is more production cost at the same value. (to explain further, this eventually lowers production standards and quality)

And of course, sending exports to America becomes less attractive to, for example, European nations. Which lowers international competition and is in effect another subsidy to local industry.

It's only a good trend if your goal is to separate your nation from the rest of the world.

Of course, that appears to be the general plan anyway.

[ Monday, December 06, 2004 15:29: Message edited by: From West to East and errandless ]

--------------------
The Encyclopaedia Ermariana <-- Now a Wiki!
"Polaris leers down from the black vault, winking hideously like an insane watching eye which strives to convey some strange message, yet recalls nothing save that it once had a message to convey." --- HP Lovecraft.
"I single Aran out due to his nasty temperament, and his superior intellect." --- SupaNik
Posts: 8752 | Registered: Wednesday, May 14 2003 07:00
Custer
Bob's Big Date
Member # 3151
 written Monday, December 6 2004 15:52 Profile Homepage #8
quote:
Originally written by Desert Pl@h:

Hey, I stumped Alorael! :eek:

BTW, why would a totally communist society need money? (not that China is, of course)

And communism is bad.
It wouldn't. You'll note all of the 'communists' to date are just rampant totalitarians, such as lovely China, who we have showered praise upon for moving from communist dictatorship to capitalist dictatorship.

Also, the failing dollar is being created by the administration through a massive deficit which already sucks up 20% of our tax money and which will cause the American economy to collapse in the long run.

Fiscal conservatism rocks if you are willing to believe that 10 years from now, everything will be saved by magical leprachauns.

Also, rampant devaluation allows the GOP to foist protectionism without tariffs and effectively inflate the US currency while solving 'inflation' from an econometric standpoint.

In other words, they're beating the hell out of our economy and making it look pretty.

GDP = C + I + G + X. Consumption plus investment plus government plus foreign trade. The government is doing their even best to get X out of a trade deficit, or into a more favorable one.

While this is good for the GDP, it is bad for the consumer and the public as a whole, because it inflates the currency like a mother. Generally, the Republicans are big on doing stuff so that the economy looks good on paper and suffers in reality.

Sane thing to do here: reverse most of the Bush tax cuts, push for a national reduction of sales tax, and progressivize the tax code with the goal being a large surplus and a more dynamic economy. The poor will buy a Ford and the rich will buy a BMW, that's just how things are. Their propensity to consume is much higher and their propensity to consume domestically is nearly 1, so money which we give to them is going to be spent and re-spent over and over and over again.

Invest the surplus into various programs which are currently harshly underfunded -- social security, for instance, or education (neither teachers nor the elderly have a big tendency to save or import), or something like that. All of this will make perfect sense to those of us not still pretending America isn't part of a global economy, which the Republicans have been doing since Eisenhower.

[ Monday, December 06, 2004 16:02: Message edited by: Fear Uncertainty and Custer ]

--------------------
The biggest, the baddest, and the fattest.
Posts: 2367 | Registered: Friday, June 27 2003 07:00
Desert Pl@h
Lifecrafter
Member # 1768
 written Monday, December 6 2004 16:29 Profile #9
Alec, you dork, I didn't ask for a political rant from someone who's no older or wiser than I am. Why must you waste your time?

--------------------
"Oh, North Wind, why frighten others?
In Nature's family all are brothers.
Puff and blow and wheeze and hiss;
You can't frighten Shingebiss.
Bring your frost and ice and snow;
I'm still free to come and go.
You can never frighten me,
One who never fears is FREE!"
-Shingebiss, the mighty duck
Posts: 830 | Registered: Tuesday, August 20 2002 07:00
Custer
Bob's Big Date
Member # 3151
 written Monday, December 6 2004 16:58 Profile Homepage #10
Old and wise apply well to economics like well-educated applies to modeling, Plah. Don't be a retard.

You want a quick answer? Fine. The dollar is losing value against the Euro like a mofo because Bush is a member of the 'screw everyone else' school, which states that the future and other people do not really matter (note that the biggest members of this school are, generally, old and filthy rich) and prefers making a pile of money now no matter what; as such, he refuses to take any kind of deflationary action and seems, at present, to be victimizing the American consumer for sport.

The one thing the President can do for the economy -- and the one constructive thing a conservative President would do for the economy -- and he won't do it.

Keynes bones you hard, fool.

[ Monday, December 06, 2004 17:04: Message edited by: Fear Uncertainty and Custer ]

--------------------
The biggest, the baddest, and the fattest.
Posts: 2367 | Registered: Friday, June 27 2003 07:00
Arancaytar
Law Bringer
Member # 2984
 written Monday, December 6 2004 17:16 Profile Homepage #11
quote:
Originally written by Fear Uncertainty and Custer:


Fiscal conservatism rocks if you are willing to believe that 10 years from now, everything will be saved by magical leprachauns.
Or if you believe that 10 years from now, the end times and rapture will have come over the Earth, and all the good little fundies are going to Heaven/Paradise, depending on denomination.

Scary.

--------------------
The Encyclopaedia Ermariana <-- Now a Wiki!
"Polaris leers down from the black vault, winking hideously like an insane watching eye which strives to convey some strange message, yet recalls nothing save that it once had a message to convey." --- HP Lovecraft.
"I single Aran out due to his nasty temperament, and his superior intellect." --- SupaNik
Posts: 8752 | Registered: Wednesday, May 14 2003 07:00
Desert Pl@h
Lifecrafter
Member # 1768
 written Tuesday, December 7 2004 13:08 Profile #12
EDITx2: Forget it…(and don't assume I'm the btch of Rush Limbaugh)

[ Tuesday, December 07, 2004 13:25: Message edited by: Desert Pl@h ]

--------------------
"Oh, North Wind, why frighten others?
In Nature's family all are brothers.
Puff and blow and wheeze and hiss;
You can't frighten Shingebiss.
Bring your frost and ice and snow;
I'm still free to come and go.
You can never frighten me,
One who never fears is FREE!"
-Shingebiss, the mighty duck
Posts: 830 | Registered: Tuesday, August 20 2002 07:00
Sticky
Infiltrator
Member # 4256
 written Wednesday, December 8 2004 06:06 Profile #13
quote:
The one thing the President can do for the economy -- and the one constructive thing a conservative President would do for the economy -- and he won't do it.
I probably will regret asking this, but what is this "one action" that the President can do?
Posts: 564 | Registered: Wednesday, April 14 2004 07:00
Albus Dumbledore
Warrior
Member # 3870
 written Wednesday, December 8 2004 06:32 Profile Homepage #14
quote:
he refuses to take any kind of deflationary action and seems, at present, to be victimizing the American consumer for sport.
I think it refers to the previous sentence.

--------------------
"Toleration is not the opposite of intoleration, but is the counterfeit of it. Both are despotisms. The one assumes to itself the right of withholding liberty of conscience, and the other of granting it."
---Thomas Paine
Posts: 156 | Registered: Thursday, January 8 2004 08:00