Results 1 to 24 of 24

Thread: Dollar drops to a record new low.

  1. #1
    God/dess
    Joined
    Oct 2003
    Posts
    3,083
    Thanks
    0
    Thanked 7 Times in 5 Posts

    Default Dollar drops to a record new low.

    Yes this was breaking news a few hrs ago.....


    http://news.bbc.co.uk/1/hi/business/3368567.stm

    Its funny because my friend ordered some beauty products from the states over the internet yesterday and we couldn't believe how cheap they worked out in £'s when we calculated the cost using a currency converter.

    I didn't hear too much but from what i did here this isn't something the goverment is to worried about bcos it will boost the export trade.... But i do feel sorry for my friends who are visiting London this week from NJ bcos it means that they wont have much money left after they change their money.

    I was wondering if this is something that will effect the US SC industry in a negative way or help it?

    Seraya.


  2. #2
    Veteran Member NVJosh's Avatar
    Joined
    Dec 2003
    Location
    Lovely Las Vegas, Nevada
    Posts
    665
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re:Dollar drops to a record new low.

    I don't know about the SC industry, however it should be good for Las Vegas. With a weak dollar, its cheaper for foreign tourists to get here and it leaves them more money to deposit on tables, in machines, in stores, in restaurants and in garters.

  3. #3
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re:Dollar drops to a record new low.

    A weaker US dollar may help out "tourist centered" clubs in cities such as Vegas or New York or Miami, where residents of European and Asian countries now get a 25% cheaper vacation than they would have last year. A weaker US dollar may also help out business earnings of companies whose costs are in US dollars but whose profits are in other currencies (i.e. US stockbrokers, commodity traders, international bankers, Fortune 500 exporting companies) which should eventually provide for better bonuses to be blown in strip clubs at some point.

    However, for the vast majority of US cities, a falling US dollar means rising prices for gasoline, natural gas/fuel oil, food, US based services like electric and telephone and cable, and higher prices for imported products from every country except China (which pegs it's Yuan to the US$ no matter what happens to other exchange rates). If you work in a "blue collar" or non-tourist city, the falling US$ is likely to do more harm than good.

  4. #4
    God/dess Zofia's Avatar
    Joined
    Apr 2002
    Location
    Durham, North Carolina
    Posts
    2,417
    Thanks
    2,964
    Thanked 2,370 Times in 934 Posts

    Default Re:Dollar drops to a record new low.

    It all depends. If your part of the country is export oriented, it's terrific news. IBM's third quarter profits are up significantly on the fall of the dollar. So too Microsoft's. A declining dollar is great news for the steel industryy and the auto industry. It should also bring in lots of Eurozone tourists. Of course all this translates into votes for George W. Bush, and that's what it's all about.

  5. #5
    God/dess montythegeek's Avatar
    Joined
    Oct 2003
    Posts
    2,103
    Thanks
    0
    Thanked 9 Times in 5 Posts

    Default Re:Dollar drops to a record new low.

    Seraya, Do not forget to add in the VAT tax you will have to pay on imported goods. Of course that is not charged if you spend the money here.
    And it is no means a record against the British pound which used to cost $2.40 rather than $1.60. The "record" low against the euro is only because the euro wasn't around before when the dollar was last weak.

  6. #6
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re:Dollar drops to a record new low.

    exactly right, geek. In the aftermath of Jimmie Carter's "recession" of the early 80's, the Deutschemark rose all the way to 3.4 per US$. Considering that the Euro/DMark definition was 2:1 this would indicate that a US$ to Euro exchange rate of $1.70 is certainly not impossible.

    I also agree with Sofia that the main objective of the weak dollar policy is to benefit exporting US companies and to also benefit other US companies who faced stiff competition from foreign imports. In theory this should temporarily stem US job losses, it should temporarily attract foreign investment back into the US stock markets, and should temporarily make the US economy look stable going into next November's election (i.e. make George Bush look good for re-election).

    Unfortunately, the weak dollar policy is also causing inflation in the prices of all international commodities i.e. gasoline/energy, food, metals etc. This is already causing price increases in US made products and in "necessities" which every US citizen must buy. However, with employment still low, there is not much likelihood that US employers will begin giving out big cost of living raises to offset these higher costs of "necessities", leaving less money in the pockets of most US citizens even they don't quite realize what's going on yet.

  7. #7
    God/dess
    Joined
    Oct 2003
    Posts
    3,083
    Thanks
    0
    Thanked 7 Times in 5 Posts

    Default Re:Dollar drops to a record new low.

    Quote Originally Posted by montythegeek link=board=6;threadid=5625;start=msg60952#msg60952 date=1073367130

    And it is no means a record against the British pound which used to cost $2.40 rather than $1.60. The "record" low against the euro is only because the euro wasn't around before when the dollar was last weak.
    Yea i already aware of that hun, i should have added "against the euro" in the heading.

    Quote Originally Posted by Melonie link=board=6;threadid=5625;start=msg60862#msg60862 date=1073345658
    A weaker US dollar may help out "tourist centered" clubs in cities such as Vegas or New York or Miami, where residents of European and Asian countries now get a 25% cheaper vacation than they would have last year.

    If you work in a "blue collar" or non-tourist city, the falling US$ is likely to do more harm than good.
    This is what i was wondering Mel.

    I also agree with Zofia about the bush comment i didn't even think of that.

    Seraya.


  8. #8
    God/dess montythegeek's Avatar
    Joined
    Oct 2003
    Posts
    2,103
    Thanks
    0
    Thanked 9 Times in 5 Posts

    Default Re:Dollar drops to a record new low.

    Melonie,
    The German's can't be that convenient. LOL
    Technically, it is 1 euro=1.95583 DM
    http://europa.eu.int/eur-lex/pri/en/...en00010002.pdf See page 2.
    Just tweaking you.

    As for the Zofia and Seraya comments about it helping W, while correct that a recovery in trade related jobs benefits the re-election prospects of the current administration the dollar is an internationally traded commodity just like stocks, not an administered or actively "targeted" valuation by manipulation. It can be manipulated and has been in the past at times, but the weakening of the dollar was not produced by the US buying foreign currencies to raise there price.

    Remember at its root an exchange rate is just a relative price, just like the price of beef vs. the price of corn or pork. Right now the price of beef is high relative to the price of corn compared to what it was 2 years ago, just like the Euro is higher vs the dollar than what it was 2 years ago. Of course from the Euro's introduction to that low the Euro had gone down from roughly $1.18 to $.83 the same can be true of corn and beef prices at points in time. (an LOL, Mel you do not have to quote the exact amounts)

  9. #9
    God/dess Zofia's Avatar
    Joined
    Apr 2002
    Location
    Durham, North Carolina
    Posts
    2,417
    Thanks
    2,964
    Thanked 2,370 Times in 934 Posts

    Default Re:Dollar drops to a record new low.

    Quote Originally Posted by montythegeek link=board=6;threadid=5625;start=msg61178#msg61178 date=1073439080

    As for the Zofia and Seraya comments about it helping W, while correct that a recovery in trade related jobs benefits the re-election prospects of the current administration the dollar is an internationally traded commodity just like stocks, not an administered or actively "targeted" valuation by manipulation. It can be manipulated and has been in the past at times, but the weakening of the dollar was not produced by the US buying foreign currencies to raise there price.
    It is a bit simplistic to view the dollar, or any currency as a commodity. While supply and demand do effect the price of a currency, policy and risk factors play a much bigger role. The Bush administration has worked both the policy and risk elements of the equation to seek a lower dollar.

  10. #10
    Veteran Member livenudegirlsunite's Avatar
    Joined
    Feb 2003
    Posts
    506
    Thanks
    0
    Thanked 8 Times in 7 Posts

    Default Re:Dollar drops to a record new low.

    This really could be very good for me. I love dancing for guys from the UK. They usually treat us with more respect than the Americans. I am so glad that I moved to Vegas. I have only come across one really mean guy from England. All of the other UK guys have been great.
    Most people prefer to believe their leaders are just and fair even in the face of evidence to the contrary, because once a citizen acknowledges that the government under which they live is lying and corrupt, the citizen has to choose what he or she will do about it. - M Rivero

  11. #11
    God/dess
    Joined
    Oct 2003
    Posts
    3,083
    Thanks
    0
    Thanked 7 Times in 5 Posts

    Default Re:Dollar drops to a record new low.

    Quote Originally Posted by livenudegirlsunite link=board=6;threadid=5625;start=msg61373#msg61373 date=1073511356
    This really could be very good for me. I love dancing for guys from the UK. They usually treat us with more respect than the Americans. I am so glad that I moved to Vegas. I have only come across one really mean guy from England. All of the other UK guys have been great.
    Yes i definitly think the states will be getting many many more tourists from the Uk and europe... Even i saving for up my NY shopping spree lol

    Seraya.


  12. #12
    God/dess Bridgette's Avatar
    Joined
    Apr 2002
    Location
    Gettin the fuck outta Dodge!
    Posts
    14,241
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re:Dollar drops to a record new low.

    I also love dancing for English guys! Some of my best nights have been directly attributed to travelling Englishmen. Woohoo!

    Quote Originally Posted by pheno View Post
    When you lead a nontraditional life don't try to measure it with traditional milestones.

  13. #13
    Veteran Member
    Joined
    Mar 2003
    Posts
    300
    Thanks
    0
    Thanked 13 Times in 4 Posts

    Default Re:Dollar drops to a record new low.

    I've met quite a few generous Englishmen. Since our dollar is less then their pound, they justify this as an excuse to splurge on their American vacations.

  14. #14
    God/dess Malibu's Avatar
    Joined
    Nov 2003
    Location
    UK
    Posts
    2,117
    Thanks
    0
    Thanked 14 Times in 10 Posts

    Default Re:Dollar drops to a record new low.

    You American ladies only enjoy dancing for English men because they're not so tight with their money when they're getting better value for it ($20 is a bargain compared to £20 for a full nude LD which is what's advertised in a lot of British clubs).

    Most of my favourite customers are actually Irish! More game for a laugh and the ethnic ladies in the club, like my good self, tend to bank when groups of them arrive. Shame the irish strip scene is a bit taboo right now...
    You are the envy
    of all parallel lines that
    dream of curves and convergence
    - Sara Bailey: Sieve of Words

  15. #15
    God/dess GoldCoastGirl's Avatar
    Joined
    Oct 2002
    Location
    ...hehehe... email me to ask me where i am ! (i dare you!)
    Posts
    11,486
    Thanks
    42
    Thanked 127 Times in 51 Posts

    Default Re:Dollar drops to a record new low.

    1.00 USD = 1.28999 AUD

    Whether the US dollar is weak or not... the AUD is weaker still! The only places I know of where my AUD might work for me is Hong Kong and New Zealand.

    Otherwise, I still pay more for other currencies (regardless of how strong/weak they are).

    That price was current as of this posting.

    Question: do you think this weak US dollar will stay around until late Feb and early March ???


    enter: E3167322D9 for your 10% discount

  16. #16
    God/dess
    Joined
    Oct 2003
    Posts
    3,083
    Thanks
    0
    Thanked 7 Times in 5 Posts

    Default Re:Dollar drops to a record new low.

    Quote Originally Posted by AussieVee link=board=6;threadid=5625;start=msg62102#msg62102 date=1073814447

    Question: do you think this weak US dollar will stay around until late Feb and early March ???
    Not sure but on the news they said that they plan on leaving it like this for a while....

    But to be honest i hope it stays like this for the whole year lol... That will be a big help for me when it comes to paying tuition for school in NYC.

    Seraya.


  17. #17
    God/dess montythegeek's Avatar
    Joined
    Oct 2003
    Posts
    2,103
    Thanks
    0
    Thanked 9 Times in 5 Posts

    Default Re:Dollar drops to a record new low.

    Quote Originally Posted by AussieVee link=board=6;threadid=5625;start=msg62102#msg62102 date=1073814447
    1.00 USD = 1.28999 AUD

    Whether the US dollar is weak or not... the AUD is weaker still! The only places I know of where my AUD might work for me is Hong Kong and New Zealand.

    Otherwise, I still pay more for other currencies (regardless of how strong/weak they are).

    That price was current as of this posting.

    Question: do you think this weak US dollar will stay around until late Feb and early March ???
    Vee, I wrote a nice note then lost it trying to upload a graph in bitmap form.
    But the exchange rate a year ago was 1 usd=1.70 aus or from the American perspective an AUS used to cost 57 cents and now cost 78 cents, a 36.8% appreciation in the AUS. Over the same time the Canadian dollar went from 65 cents to 79 cents for a 21.5% appreciation. You AUS buys about 15% more than it did in Canada too.

    Do not get hung up on the fact that both are called dollars. Thinking it should be 1 to 1 is like thinking the temperature should be the same in Celsuis and Fahrenheit. And yes the Aus dollar is more likely to stay nearer where it is than go back to where it was for the next year.
    Link to chart of what an aus cost an American over the last year. http://finance.yahoo.com/q/bc?s=CADUSD=X&t=1y

    And Seraya, we ran down the value of the dollar just so we could make it cheaper for you(personally) to come visit us. LOL

  18. #18
    God/dess
    Joined
    Oct 2003
    Posts
    3,083
    Thanks
    0
    Thanked 7 Times in 5 Posts

    Default Re:Dollar drops to a record new low.

    [quote=montythegeek]

    And Seraya, we ran down the value of the dollar just so we could make it cheaper for you(personally) to come visit us. LOL
    Hahaha!

    Seraya.


  19. #19
    Veteran Member NVJosh's Avatar
    Joined
    Dec 2003
    Location
    Lovely Las Vegas, Nevada
    Posts
    665
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re:Dollar drops to a record new low.

    I was watching "Thunderball" last night (one of my favorite Bond flicks) and they mention that S.P.E.C.T.R.E. is charging a ransom of "Two hundred and eightly million dollars. One hundred million British pounds." Boy, have things changed since then.

  20. #20
    God/dess montythegeek's Avatar
    Joined
    Oct 2003
    Posts
    2,103
    Thanks
    0
    Thanked 9 Times in 5 Posts

    Default Re:Dollar drops to a record new low.

    Josh, thats "Hollywood inflation". Each new film has to have the payoff for the crooks be higher than the prior film. The best guide is the amount that the bad guys steal/swindle/ransom between remakes of the same film (example "The Getaway"). What seemed like a lot in 1960, was paltry in the 1990's, even just changing the amount by the CPI change over the same time. Monsters have to be scarier too--would you be scared in 2004 by a "Blob"?

  21. #21
    Veteran Member NVJosh's Avatar
    Joined
    Dec 2003
    Location
    Lovely Las Vegas, Nevada
    Posts
    665
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re:Dollar drops to a record new low.

    monty - I wasn't referring to the dollar amount itself, just that when the movie was made, 1 British pound was $2.80 U.S. That has certainly changed a lot.

  22. #22
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default Re:Dollar drops to a record new low.

    Whether the US dollar is weak or not... the AUD is weaker still! The only places I know of where my AUD might work for me is Hong Kong and New Zealand.
    actually the HK$ is pegged to the US$ by Chinese Gov't intervention in the international markets, so whatever happens in regard to the US$ will affect the HK$ in the exact same way (as long as the Chinese continue to manipulate the exchange rate). Now the NZ Kiwi is a different story.

    Question: do you think this weak US dollar will stay around until late Feb and early March
    IMHO the US dollar will continue to devalue at least until next November's presidential election. If this question is related to your thoughts of working in Guam (which you posted in another thread), the sooner you earn those US dollars in Guam, the more Aussie Dollars you can exchange them for. Even if you were to earn exactly the same number of US dollars in Guam next fall as you could next month, if the Aussie dollar continues to strengthen you may actually wind up with 15-20% fewer Aussie dollars after the exchange.

  23. #23
    God/dess NinaDaisy's Avatar
    Joined
    Nov 2003
    Location
    Manhattan
    Posts
    3,432
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re:Dollar drops to a record new low.

    Quote Originally Posted by livenudegirlsunite link=board=6;threadid=5625;start=msg61373#msg61373 date=1073511356
    This really could be very good for me. I love dancing for guys from the UK. They usually treat us with more respect than the Americans. I am so glad that I moved to Vegas. I have only come across one really mean guy from England. All of the other UK guys have been great.
    I agree! I danced in London and there was no contact at the club where I danced (Spearmint Rhino) so most of my English costomers are quite happy with low-contact. They really are more gentlemanly too, even when they (politely) turn you down for a dance.

    Although I miss the days when the Euro was worth $.80! All the way back in Oct. '02, when I spent some time in Berlin and Amsterdam. Six months later it was almost $1.10, this past October to $1.18 and it shows no signs of slowing.

    By the way, the reason profits are increasing for Microsoft and IBM is because they're outsourcing thousands of jobs overseas. Cheaper labor=higher profits.
    "She has written so well, and marvellously well, that I was completely ashamed of myself as a writer...But this girl, who is to my knowledge very unpleasant and we might even say a high-grade bitch, can write rings around all of us who consider ourselves as writers"

    Ernest Hemingway on writer, aviation pioneer and horse trainer Beryl Markham


  24. #24
    God/dess montythegeek's Avatar
    Joined
    Oct 2003
    Posts
    2,103
    Thanks
    0
    Thanked 9 Times in 5 Posts

    Default Re:Dollar drops to a record new low.

    quote
    By the way, the reason profits are increasing for Microsoft and IBM is because they're outsourcing thousands of jobs overseas. Cheaper labor=higher profits.

    Easy to say. but hard to actually prove from their Income statement. Look at Microsoft calendar q3 2003 form 10-q at http://www.microsoft.com/msft/download/FY04/10Q04_1.doc
    over the prior 4 quarters, operating expenses went from 60.9% of revenues to 61.7%. If they were replacing labor with cheaper foreigners that would have gone down.

    Net income went up $573 million but investment income went up $722 million. MSFT has $49-51 billion dollars in cash and short term investments. It is far more supportable to say they made money on that $50 billion for a change and that made Microsoft make money.

    Stay tuned the new quarter comes out 1/22/04.

Similar Threads

  1. Replies: 20
    Last Post: 08-15-2011, 10:14 PM
  2. Record Earnings based on Record Bull$#!t
    By Melonie in forum Dollar Den
    Replies: 0
    Last Post: 01-25-2011, 10:18 AM
  3. low carb vs low cal vs low fat vs raw
    By Collegegirl in forum Body Business
    Replies: 6
    Last Post: 06-18-2010, 07:13 PM
  4. Replies: 4
    Last Post: 01-11-2008, 11:23 PM
  5. Bush Approval Drops To New Low
    By dlabtot in forum Political Poo
    Replies: 0
    Last Post: 07-27-2005, 11:54 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •