PornGeneral

So many people complaining about the dollar being weak against the Euro, but have no idea what the truth behind the weak dollar.

Here is a brief summary of my OPINION!

The dollar's strength and weakness are shown by Monetary Polices, Trade, and Budget. And on somewhat a small scale the current economic climate in the US. Lots of people get scared when they hear "weak dollar" but in truth most Americans buy goods and services from America and will not experience the effects of the weak dollar overseas. Usually the well off are the only ones effected who travel overseas and are hit with the "Exchange Rate" shock!

Picture the US economy as the 800x2 pound monkey of the world, when its up the world's economy is growing, and when its down the world suffers. The world relies heavily on US corporate investments overseas to drive their economies and on a huge part their exports to the US. See the world needs our money!!

Now that makes the US dollar a very effective political tool in the world political market. See when the dollar is down and if the EU exporters to the US don't adjust their prices upwards thier profits are hurt (BMW hasn't raised its prices mainly due to stiff competition from Asian auto makers) and growth is postponed or hampered. EU companies are in a pinch because they can't afford to loose US corporate investments and the American consumer who buy their goods. Not to mention the travel industry is hurt, which employ a lot of low wage people.

THIS KILLS GROWTH IN THE EU ECONOMY!

And they can't afford with the stiff competition from SE Asia, Mexico, and India to loose our business during this turn to growth in the US Economy.

The only ones worried about the dollar decline are the EU economic policy makers.

Very powerful political tool.

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kmanrox

i live overseas.... DAMN THE WEAK DOLLAAAAAA!!!!!

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Libertine

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Schwick

DO NOT CLICK THIS LINK....it was setting off my antivirus software like crazy.

Libertine

Then your antivirus software is probably that piece of shit AVG. You should pay for something that doesn't suck as hard

There is no virus on that page.

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BRISK

Your explanation is just simplistic and full of holes

A falling US dollar is an extreme threat to the US economy and every American. Forget Europe. The US economy will experience inflation and/or higher interest rates if the dollar continues to fall.

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Dirty Dane

Because oil prices and the dollar have moved in opposite directions, the increase of oil expressed in euros instead of dollars has been less pronounced than the oil price increase in dollars.
Oil producers sell their products in dollars. These dollars are used to purchase other goods in international markets. As the dollar lost its value starting in 2002, oil producers could afford to buy less in international markets with their dollars. To compensate for this loss of buying power, they may have raised the dollar price for oil. As a result, while oil prices in dollars rose by 162 percent from their low point in beginning of 2002, they climbed by less than half that rate measured in euros, 77 percent. At that rate, oil prices would have only risen to $34 per barrel in October 2004, instead of the actual $52, without changes in the dollar?s value.