retired_google

I'd say it's more cronyism than actual reeling.

retired_rachelst

Kuwait finally untied the dinar from the dollar a few weeks ago, meaning I won't be as bad off buying a place in London \o/

retired_the gizmo

"But the dangers of a weak dollar aren't evenly distributed, especially this time around. It's mostly a concern for countries in Europe and Asia. A higher dollar makes it more difficult for U.S. consumers to afford products imported from those regions, which rely heavily on exports as engines of economic growth. A weak currency typically leads to inflation, because it prompts companies that export to the U.S. to raise prices.

"Things aren't working that way this cycle, and it's unlikely that will change," Dudack says. Japan and other counties in Asia depend on exports for economic growth. They can't afford to raise prices, because anything that damages the U.S. economy hurts them directly, she says. They're holding the line on prices, taking a hit to their profit margins instead.

RISING EXPORTS. The falling dollar also stands to help the U.S. manufacturing sector produce more domestic jobs. As U.S.-made goods and services become cheaper compared to those of rivals in other countries, demand will increase. That will boost domestic production of machine tools, cars, even the long-troubled textile industry, according to Wyss."

retired_musiclova31

which in turn will lead to falls in unemployment > increased consumer spending > strengthening o fthe dollar... you're a banana republic

retired_google

We still have a textile industry?

retired_the gizmo

well sure, the dollar isn't going to stay weak forever. hopefully just long enough to get my ducks in order while it's still cheap.

retired_stevesgrl

A weak currency would make imported goods in the US more expensive. It doesn't prompt the exporting country to raise prices at all. It in fact forces them to lower to prices.

If something costs one euro, at parity it costs one dollar. At 1.36 it means the US consumer needs more dollars to buy the same good. The exporting producer has not changed price at all. In fact it forces the producer to either focus selling the good in Europe or cut his euro price as the relative price of the US equivalent has become cheaper. I would seriously reconsider using this person as reference daaaave.

retired_stevesgrl

He is right about the inflation part though. But only if there is no substitute local product.

retired_craftynm@pa.net

whs. Canadian/New Zealand timber ftl. :cool:

retired_the gizmo

A weak currency would make imported goods in the US more expensive. It doesn't prompt the exporting country to raise prices at all. It in fact forces them to lower to prices.

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that's why the next sentence is "Things aren't working that way this cycle, and it's unlikely that will change", amigo.