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the dollar

The currency has lost 13.2 percent since January 2001, when George W. Bush took office, the most under any president since at least Gerald Ford, who left the White House in 1977. That's based on a Federal Reserve index that tracks the dollar against the currencies of 38 U.S. trading partners, including Germany, Japan and Canada.


http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aAvJcDT9u8NU

A weaker dollar is helping the economy and may bolster voters' confidence in the Republican party as the U.S. heads into a presidential election year. Rather than causing foreigners to flee U.S. securities, the depreciating currency is making American goods less expensive abroad and helping offset the worst housing recession in 16 years. Exports reached an all- time high of $132 billion in May, the government said this month.
Permalink bob 
July 28th, 2007 10:29pm
The dollar was absurdly overvalued in 2001. Nevertheless, some of that loss was probably due to ham-fisted and downright retarded fiscal policy.
Permalink Send private email Colm 
July 28th, 2007 10:34pm
How do you feel about the value of the dollar now?
Permalink bob 
July 28th, 2007 10:35pm
That it'll probably fall further still.
Permalink Send private email Colm 
July 28th, 2007 10:37pm
Sounds about right.

1 Euro = 1.3698 U.S. dollars
1 DOLLAR = 118.835413 YEN
1 British pound = 2.0388 U.S. dollars
Permalink bob 
July 28th, 2007 10:44pm
http://finance.yahoo.com/q/bc?s=JPYUSD=X&t=5d

I wonder how Bluebeard's system is going.
Permalink bob 
July 28th, 2007 10:45pm
Woohoo! My next visit to the US is going to be really cheap.
Permalink Send private email Colm 
July 28th, 2007 10:46pm
As the indexes change their parity from the dollar to the euro, the dollar might lose even more of its apparent value and then lose more real value. That is, when is it going to stop falling? :-)
Permalink Oy- 
July 28th, 2007 11:59pm
> As the indexes change their parity from the dollar to the euro

what?
Permalink guess worker 
July 29th, 2007 12:02am
<<<
In economics and finance, an index is a single number calculated from an array of prices or of quantities. Examples are a price index, a quantity index (such as real GDP), a market performance Index (such as a labour market index / job Index or a stock market index). Values of the index in successive periods (days, years, etc.) summarize level of the activity over time or across economic units (regions, countries, etc.).

Consumer price indexes can be used, among other things to adjust salaries, bonds interest rates, and tax thresholds for inflation.

Some investment funds (index funds) manage their portfolio so that their performance mirrors (tracking) the performance of a stock market index or a sector of the stock market.>>>
http://en.wikipedia.org/wiki/Index_(economics)

These are values which used to be set in the dollar and are now being switched to euro due to the stability of the euro over the dollar.
Permalink Oy- 
July 29th, 2007 12:08am
which ones have been switched?
Permalink guess worker 
July 29th, 2007 12:22am
<<<
By JAMES HERTLING AND SIMON CLARK
Bloomberg News
Monday, January 31, 2005 - Page B3


Bill Gates, whose net worth of $46.6-billion (U.S.) makes him the world's richest person, is betting against the U.S. dollar.

"I'm short the dollar," Mr. Gates, chairman of Redmond, Wash.-based Microsoft Corp., said during an interview at the World Economic Forum in Davos, Switzerland. "The ol' dollar, it's gonna go down."
>>>
http://forum.tradesports.com/eve/forums/a/tpc/f/287103657/m/376108948

Note the date. 2005. :-)

Seriously, that doesn't count like it, but outside of the U.S., folks don't need (need) to support the dollar, so they can switch whenever they feel like it and the U.S. doesn't have a say. So expect more switches, not less. But I don't have the examples handy, except this one of BG.
Permalink Oy- 
July 29th, 2007 12:38am
My dad lives outside the US but gets paid in the USD, so over the last few years he has effectively lost around a third of his wages.  It has made him cut back on a lot of the travel he is used to.
Permalink Aaron 
July 29th, 2007 12:40am
The example of Bill Gates is one investor getting short the dollar.

It has nothing to do with an index changing to euro.
It is not an example of an index changing.
Permalink  
July 29th, 2007 12:55am
Alright, I am going to speak in oilnese so you can understand:

<<<
The rise of the euro is proving a boon for America’s oil-rich enemies too. The strengthening euro has equipped Iran with the option of demanding its clients pay for oil in euros rather than American dollars. Iran already receives payment for more than half of its oil in euros. Now Venezuela, another top oil producer, is strongly considering selling its oil in euros.

Russia, another major oil producer, is also switching to the euro. On April 20 last year, Russian Finance Minister Alexel Kudrin said, “Russia cannot consider the U.S. dollar as a reliable reserve currency because of its instability. This currency has devalued by 40 percent against the euro in recent years. The international community can hardly be satisfied with this instability.” Over the next four weeks, the dollar plunged 6.6 percent. In June, Russia announced it had reduced its U.S. dollar foreign exchange reserves from 70 percent to 50 percent, while increasing its euros from 25 percent to 40 percent. The same month, Russia also socked the dollar by starting to trade futures contracts for gold and crude oil denominated in Russian rubles as opposed to dollars (in which most of the world’s commodities are traded) in the Russian Trading System.

By reducing their reliance on the dollar and investing in the euro, America’s enemies have a new weapon to use against the U.S.

A weakening dollar and strengthening euro is even making trade and commerce more difficult for America’s allies. During the last half of 2006, nations that accepted payments for goods and services (such as oil) in dollars saw the value of their dollars decrease dramatically against the euro and other currencies.
>>>
http://www.thetrumpet.com/index.php?page=article&id=2928
Permalink Oy- 
July 29th, 2007 1:14am
Did the Bush administration really imagine there would be no consequences to massive debt and trade deficit?
Permalink Aaron 
July 29th, 2007 1:17am
Again.  so some oil companies are sending and accepting payment in euros. 

not an index.

which indexes changed?
Permalink  
July 29th, 2007 1:19am
Reductio ad absurdum:

"Disproof of a proposition by showing that it leads to absurd or untenable conclusions."

Anyway, even if officially indexes are still in dollar, companies and governments might check with the euro the numbers to see how they fluctuate. Indexes that switch from dollar to euro don't have to be famous ones, because each company might have its own internal indexes for instance.

Am I wrong in claiming it? I don't think so. When it's about money, folks don't like losing it on purpose.
Permalink Oy- 
July 29th, 2007 1:34am
The greatest economic boom ever:

http://money.cnn.com/magazines/fortune/fortune_archive/2007/07/23/toc.html
Permalink Send private email LinuxOrBust 
July 29th, 2007 2:42am
This doesn't feel like a boom. Nobody is predicting that the high street will disappear or anything crazy like that.
Permalink Send private email Colm 
July 29th, 2007 2:49am
That said, I think a few VCs will be hit by the whole web 2.0 craze. Quite a few of the businesses which quite rightly failed in '99 are cropping up again.

Google's stock price will come crashing down at some point too. If I knew when, I'd buy put options. If I had any money.
Permalink Send private email Colm 
July 29th, 2007 2:52am
LorB's link:

> "This is far and away the strongest global economy I've seen in my business lifetime," U.S. Treasury Secretary Hank Paulson declared on a recent visit to Fortune's offices.

Strongest global economy. Note qualifier.
Permalink Practical Economist 
July 30th, 2007 4:12am
The stock market looks great if you measure it in dollars. If you measure it in euros, it is remarkably flat.

>Did the Bush administration really imagine there would be no consequences to massive debt and trade deficit?
Nope. They'll just blame it on the Clenis™. This is the administration where they (Rove) said:
>We're an empire now, and when we act, we create our own reality. And while you're studying that reality -- judiciously, as you will -- we'll act again, creating other new realities, which you can study too, and that's how things will sort out. We're history's actors . . . and you, all of you, will be left to just study what we do.

http://www.nytimes.com/2004/10/17/magazine/17BUSH.html?ei=5090&en=890a96189e162076&ex=1255665600&adxnnl=1&partner=rssuserland&adxnnlx=1123992337-Nf6/K9EnvxEDzVZedCEtTg&pagewanted=all&position= 

>A weaker dollar is helping the economy and may bolster voters' confidence in the Republican party as the U.S. heads into a presidential election year.
What a load of bullshit. The dollar is declining because bush's policies are destroying it. A declining dollar makes prices rise, so John Q Public is paying for bush's peculation every time they visit any store.

>...but outside of the U.S., folks don't need (need) to support the dollar, so they can switch whenever they feel like it and the U.S. doesn't have a say.
Equador and El Salvador use the US dollar for their currency. The gulf region is planning on a common currency tied to the dollar, but as Kuwait got hammered by currency speculators, they had to abandon their peg to the dollar. The 1997 asian financial crisis was driven by low reserves of foreign currency, which is why many of those countries now have vast dollar reserves: they're betting that they can outlast any future financial terrorism by the speculators.
Permalink Peter 
July 30th, 2007 10:29am

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