Weak US Dollar means stronger US Businesses

finance.yahoo.com...

Simply the weaker US Dollar since 2003 has allowed US Businesses to raise prices with competitors importing goods - thus increasing the strength of US Businesses that are producing domestically.

Ironically most common person's great fear (a weak US Dollar) has beneficial effects which can be capitalized upon and inevitably allows for a stronger US Dollar.

Wouldn't the price increases come from supply & demand since the dollar is weaker it means you get less for the same amount of money. If you are getting less then you have to raise the prices to meet the demand.


I don't see how this can be a good thing.


2000 1us dollar = 3 russian ruples
2007 1us dollar = 1.5 russian ruples

Beluga caviar cost =1.5russian ruples a pound
2000 = 2pounds beluga caviar
2007 = 1pound beluga caviar

This is only an imaginary figure but how could it be good for business?

Profits :-D and it would serve well for US citizens to start profit-sharing through partial ownership rather than relying upon wages to make ends meat.

People act surprised when wages don't bring home the bacon but when have they ever? As far as I can remember it was wage slave into the Industrial Age of Capitalism and on to Peasantry.

Never has a "middle class" existed long as wage earners - it rarely happened during the baby boomers from incredible global economic growth.

That would be great if what was good for business was good for the average joe - in fact it is not. What is good for business is exclusive to business. We continue to be slaves. Slaves do have a way of turning on their masters every so often. The time is approaching once again methinks.

This guys propaganda is hilarious and surely the most ironic name Ive seen on here too.

No one is falling for it either.

Originally posted by duckcheney
That would be great if what was good for business was good for the average joe - in fact it is not. What is good for business is exclusive to business. We continue to be slaves. Slaves do have a way of turning on their masters every so often. The time is approaching once again methinks.

Wrong - it allows more people to be hired, expansion of businesses and growth.

You are very near sighted.

Originally posted by ThePieMaN

I don't see how this can be a good thing.

There are winners and losers, but any US business involved in exports will benefit through being able to offer more competitively priced products. Foreigners will buy more US products.

[edit on 17-4-2007 by nowthenlookhere]

Originally posted by nowthenlookhere

Originally posted by ThePieMaN

I don't see how this can be a good thing.

There are winners and losers, but any US business involved in exports will benefit through being able to offer more competitively priced products. Foreigners will buy more US products.

[edit on 17-4-2007 by nowthenlookhere]

Yes and domestic sales would be preferred over imports.

Originally posted by nowthenlookhere
There are winners and losers, but any US business involved in exports will benefit through being able to offer more competitively priced products. Foreigners will buy more US products.

I don't know anymore. What is it that we can export? Steel? Several companies are being bought out by an Indian company, Computers? Everything is manufactured in Asia. Maybe agricultural and chemical products, but anything that uses petroleum, steel or other products manufactured outside of this country is going to suffer. You might want to add to it that with the crackdown on illegal workers may also raise the costs on certain things making it not worth the cost even if their currency is stronger -vs- the dollar. Its very rare to see made in USA anymore. Even car parts are manufactured outside of this country and just assembled here. Maybe you may see an occasional "Manufactured in XXXX Assembled in USA" label very rarely.


Pie

Originally posted by ThePieMaN

Originally posted by nowthenlookhere
There are winners and losers, but any US business involved in exports will benefit through being able to offer more competitively priced products. Foreigners will buy more US products.

I don't know anymore. What is it that we can export? Steel? Several companies are being bought out by an Indian company, Computers? Everything is manufactured in Asia. Maybe agricultural and chemical products, but anything that uses petroleum, steel or other products manufactured outside of this country is going to suffer. You might want to add to it that with the crackdown on illegal workers may also raise the costs on certain things making it not worth the cost even if their currency is stronger -vs- the dollar. Its very rare to see made in USA anymore. Even car parts are manufactured outside of this country and just assembled here. Maybe you may see an occasional "Manufactured in XXXX Assembled in USA" label very rarely.


Pie

Maybe you didn't know this but the United States is the world's second largest Exporter - behind Germany (which recently became the largest Exporter in the world).

It's just that the US imports much more.

Originally posted by TheIntelligentInvestor
Maybe you didn't know this but the United States is the world's second largest Exporter - behind Germany (which recently became the largest Exporter in the world).

It's just that the US imports much more.

TheIntell

Yes but the resources for many of these products as I was trying to convey come from outside. Anything petroleum based, iron or steel etc etc. The one thing we do absolutely profit from when the dollar is weak is definitely tourism. The Hotel industry, the tourism industry, the souveneirs, transportation (Airlines. trains and Buses) and sightseeing all benefit when the dollar is weak.

Tobacco industry may also be another sector that might profit outside of this country since they are not fairing so well domestically with all the anti-smoking laws.



Pie

ThePieMan, the US owns most of the mining companies exporting to the US. Chiles, Saudi Arabia, Iraq, Iran, Angola, Botswana, and others depend largely on either American, French or British companies for finance. Japan, China and Korea are nothing without western technology and finance. The Western World and more appropriately, the Anglo American world finances and supplies the technology to remove mineral wealth from the earth and turn it into something useful.

Originally posted by etotheitheta
ThePieMan, the US owns most of the mining companies exporting to the US. Chiles, Saudi Arabia, Iraq, Iran, Angola, Botswana, and others depend largely on either American, French or British companies for finance. Japan, China and Korea are nothing without western technology and finance. The Western World and more appropriately, the Anglo American world finances and supplies the technology to remove mineral wealth from the earth and turn it into something useful.

I don't think they are owned by the US but perhaps the parent companies are US corporations. That may be true but a good businessman is going to trade his product in a currency that is doing well wouldn't he? He will use the British Pound or the US Dollar or even now the Euro which is trading higher then the US dollar. Especially when we are talking about overseas corporations. They are not going to deal in local currencies. I would imagine even these companies even though they are US corporate holdings are probably trading moreso in British Pound or Euro nowadays.

Anyways the majority of these offshore corps will not add to our treasury or economy. I would wager more then 1/2 of them have their corporate tax structures set up to hide a large portion of their taxable incomes in other shell corporations in countries like the Bahamas or Switzerland.

Originally posted by ThePieMaN
I would imagine even these companies even though they are US corporate holdings are probably trading moreso in British Pound or Euro nowadays.

The Euro will be exposed by the fraudulent nature of the Italian, Polish and Irish economies. The French and Germans are floating the Euro to its current around about $1.40 mark, but unless major currency reserves can be etched out in the middle east soon, the euro will tank.

dollar goes down and foreign investment and capital inflows in to the united states goes where? .............................down


we raise intrest rates to *attempt* to sustain foreign investment and the economic situation will continue to decline which it did last quarter

the job numbers are so manipulated and the M3 data is not even printed anymore because we could see the PPT's fingerprint becoming more and more needed.

the housing slide is continually under forecast do try to minimize it's effect on future consumer spending and perception control, but it is only getting worse

we raise rates we will fall into depression

we lower rates we will still have recession, high inflation, and a currency crisis

everyone back to bed and listen to those looking out for you on CNN and CNBC everything will be fine this is only a hiccup (riightt)

and ironically i think the DJIA slide will be stopped this afternoon by the PPT if it picks up any more steam

in case you don't know how the PPT MAY work

they have a large amount of money at there disposal thanks to the fed granting them this leverage in 1987 (to avoid unneccesary spooked sell-offs in response to things such as a terrorist attack or foreign market slide)
and they use this leverage to bet against all the shorts who see the writing on the wall betting on a decline. when the PPT bets on the opposite the shorts ( who are outleveraged) find themselves loosing money and need to cover themselves so they have to reinvest and go against there intial position to save them selves a bigger loss. and thus (ironically) they prop the market up, usually out of no where.

imagine a powerful hurricane headed for the united states and picture the PPT team currently able to disrupt the outer feeder bands of such a storm, problem is when the prospective squalls reach hurricane force, the PPT will be able to provide about as much safety as a trailer park in hurricane KATRINA:

this is not off the GOVT's radar , this slide is the only way a NAU will come to fruition. my biggest worry is the rioting and violence that may ensue here and since all are troops will be gone, UN troops are waiting for the phone to ring

when the hedge funds and derivatives sell off it will be game over



[edit on 8-6-2007 by cpdaman]

there is a good paper by an Asian economist on the threat inflation will play in america later in the year and beyond

he cites the fed's desire to tame inflation will be overwhelmed by there desire to try and boost economy by giving borrowers a continuing of the cheap labor liqour pipeline to starve off a tightening of the credit supply but barnake may only be able to cut rates .25 twice before inflation rises to dangerous levels as well as economy slowing even further.

as dollar weakens foreign investment will wither away and well houston we have a problem.

foreigners are buying up american assets at disturbing levels as warren buffet has said year ago and this pace has quickened

Gee, I would of thought that a weak US dollar would mean I could come in with a few sheckles and buy everything up for cheap .