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thepeel
Joined: 08 Aug 2004
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Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
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 Posted: Tue Nov 27, 2007 7:08 pm Post subject: |
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| A weak dollar stimulates exports. The Korean government does this all the time. |
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thepeel
Joined: 08 Aug 2004
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| Posted: Tue Nov 27, 2007 7:15 pm Post subject: |
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Oh yeah! How did I forget that?
Do you remember the economic pain when American went from a manufacturing economy to a consumption/services economy? A little town called Flint had a film or two made of it. Well, the switch back is going to be WORSE. Much worse.
Also, you're simply, totally and fully wrong. Let's discuss why (yata's macro lesson for today).
We live in a globalized world economy. When country "x" manufactures something it does so with resources and unfinished goods imported from country "y". When you have a country that is as high on the value chain as is the USA, virtually all finished goods for export or domestic consumption contain imports of unfinished goods or primary resources from other nations. If your currency is very weak, it is very expensive to import products from around the world and by this your exports actually don't get that much cheaper (all nations buy resources and unfinished goods from the same GLOBAL MARKETS) and your domestic consumption is lessened. Now, if you are China and you are low on the value chain, this isn't that big of a problem. If you are America, this means yata's silly analysis is simply wrong. |
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sojourner1
Joined: 17 Apr 2007
Location: Where meggi swim and 2 wheeled tractors go sput put chug alugg pug pug
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| Posted: Tue Nov 27, 2007 7:45 pm Post subject: |
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| If the dollar hits historic lows, this creates an economic environment for new factories as it will be cheaper to produce and American workers will be even more desperate for and willing to work for less just to survive as life gets more difficult for them. |
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blade
Joined: 30 Jun 2007
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| Posted: Tue Nov 27, 2007 10:53 pm Post subject: |
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| It certainly looks like the dollar is in a lot trouble at this point, so my question is how many other countries economies will it take down with it when and if it ceases to be the worlds main commodities currency? |
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mistermasan
Joined: 20 Sep 2007
Location: 10+ yrs on Dave's ESL cafe
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| Posted: Wed Nov 28, 2007 12:08 am Post subject: |
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back home my brothers are all union electricians. they say things are going better than at any time since the 1960's. this is in southern illinois (where there has been no manufacturing for awhile now).
something is cooking. |
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keane
Joined: 09 Jul 2007
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| Posted: Wed Nov 28, 2007 3:47 am Post subject: |
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| mistermasan wrote: |
back home my brothers are all union electricians. they say things are going better than at any time since the 1960's. this is in southern illinois (where there has been no manufacturing for awhile now).
something is cooking. |
In what industry? An important point. Keep in mind, also, that even in a big recession a lot of people's lives are never really affected seriously. It's a big economy and the downturn is just getting started. |
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mistermasan
Joined: 20 Sep 2007
Location: 10+ yrs on Dave's ESL cafe
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| Posted: Wed Nov 28, 2007 4:13 am Post subject: |
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| a new fuel refinery (hasn't been one of those in many moons) and new ethenol plants are the biggies. it remains to see what kind of trickle down there will be. |
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keane
Joined: 09 Jul 2007
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| Posted: Wed Nov 28, 2007 4:35 am Post subject: |
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Financial Sense News Hour, Nov 23, 2007
Haven't watched it yet, but this comment
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| It's interesting that this week The Financial Sense Newshour is calling for a total collapse of the world fiat fueled economies. |
was found with the link. If anyone has time, do fill us in. If I find time, will do the same. |
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Leavingkorea
Joined: 27 Apr 2007
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| Posted: Wed Nov 28, 2007 8:23 am Post subject: |
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Also, you're simply, totally and fully wrong. Let's discuss why (yata's macro lesson for today).
We live in a globalized world economy. When country "x" manufactures something it does so with resources and unfinished goods imported from country "y". When you have a country that is as high on the value chain as is the USA, virtually all finished goods for export or domestic consumption contain imports of unfinished goods or primary resources from other nations. If your currency is very weak, it is very expensive to import products from around the world and by this your exports actually don't get that much cheaper (all nations buy resources and unfinished goods from the same GLOBAL MARKETS) and your domestic consumption is lessened. Now, if you are China and you are low on the value chain, this isn't that big of a problem. If you are America, this means yata's silly analysis is simply wrong. |
Wow, that is overly simplistic approach that over looks some huge economic concepts that clearly argue against what you just wrote (BTW you also mixed in micro economic ideas there). Perhaps you should retake that Economics course? Some things I suggest you learn more about: economic efficiency, economies of scale and especially comparative advantage. |
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keane
Joined: 09 Jul 2007
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| Posted: Thu Nov 29, 2007 12:55 am Post subject: |
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| Leavingkorea wrote: |
| Wow! That is an overly simplistic approach that overlooks some huge economic concepts that clearly argue against what you just wrote (BTW, you also mixed in microeconomic ideas there). Perhaps you should retake that Economics course? Some things I suggest you learn more about: economic efficiency, economies of scale and, especially, comparative advantage. |
Stay in the oil patch, oil patch. |
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