The American dollar takes a fall.

[hoverfly]

"Daktaris? You a wanta pay me in republica credits? That'sa no good. I gotta have something more real!" - Watto to Quigon when he was trying to purchase parts for his spaceship.

He should replied back, would Euros do?

[JNR]

Yeah! probably due to that French guy that lost all the money for the French Bank.....

[Dr. Shoe]

It's not the dollar rising it's the Euro falling. It's gone down against sterling as well.

[thedesigner]

personally i think the dollar has fallen cos it wasnt used to walking in 6" heels....

[Guy N. Heels]

It's not the dollar rising it's the Euro falling. It's gone down against sterling as well.

Actually, you have just touched upon the stickiest aspect of money. Perhaps the Pound Sterling is the currency to gauge the rise or fall of the "funny money" against. But as understand it, the US dollar, the Euro, and even the Yen are all "paper money".

[tightsnheels]

I quite agree as the pound is at least still backed by something. Where as most currencies are not and as pointed out are just funney money. It is nice to have some form of money though as otherwise one would need that wheelbarrow mentioned earlyier to haul around their valuables to make purcheses. Though valuables are more real they can weigh a ton (literally). Part of the problem (the way I see it, and I could be wrong) is how many other countries have pegged their own currency values the dollar. To me it sure doesn't make sense, but they do it any way just to ensure that their biggest trading partner is always paying the same. Why is oil sold in dollars? Because we use the most of it. If everyone here started driving small fuel efficient cars then their exports would plummet and oil would suddenly shift what it was sold in to the next biggest user.

Just some thoughts on the matter.

Slightly on and off topic has anyone else heard of something called an Amero? I heard about it on a political radio show as being a single currency from mexico to Canada. Makes me a little nervous to think about it. I would have to take Britan's example of the Euro and say we should stay out of it if it is true.

T&H

[Dr. Shoe]

Actually the reason why oil has been traditionally traded in dollars is because it was first produced in commercial quantities in the US...

[tightsnheels]

To the good Dr., I humbly stand corrected.

T&H

[Guy N. Heels]

Well the dollar is still in trouble and now even "witless" Bush is decrying the effect of high oil prices on the American economy. So what kind of safety net do we use to catch the falling dollar?

[johnieheel]

I know! Move more jobs to China and Mexico and import more Mexians to the US.

[hoverfly]

I know! Move more jobs to China and Mexico and import more Mexians to the US.

Yeah! that's it!! I moving to Mexico!

NOT!!

[ShockQueen]

Sadly, it's why I won't be able to take a trip to the UK for some time, but if you all wanna come to THIS side o' the land mass on this side o' the pond for a heelmeet, then it may be doable. Slightly off-topic, but........:The job market I've heard, on the other hand, is tighter over there than it is here *shoves topic back on rails*

[Bubba136]

The weak dollar does have some positive affects on the US economy, though. I just read in the newspaper that the BMW plant in Greer, SC is going to increase production from the 155,000 units they made last year to 240,000 units by 2012 and cut 5,600 jobs in Europe because the cost of wages and benefits are cheaper here. Not only that, the BMW company is seeking US manufacturers to supply parts that are currently imported from Europe because the exchange rate between the Euro and Dollar makes it it cheaper to buy them here.

[hoverfly]

In the long term that may work out, but in the short term it's going to hurt real bad for many. Charities are having a hard time meeting the needs of the ever increasing working poor. I my self have been working the same job for a year for the first time in 3 years. But now things are very iffy and sales drooped off......no, hit the bottom of the bucket right now with a hallow thud. can't get a break. Oil at $108.00 a barrel, food prices shot up....

[tightsnheels]

With the weekening dollar maybe we could become the new China? People could export their jobs here and we could have more work (at least until the dollar strengthens again.)

Seriously at times like this i am glad to have a stable job in a retirment home. Fortunatly for me people have this habit of getting older regardless of the economy. Unlike the Mrs. who worked in a economy depenant field and is now looking for new employment. So I still feel the effects.

T&H

[JNR]

With the weekening dollar maybe we could become the new China? People could export their jobs here and we could have more work (at least until the dollar strengthens again.)

Seriously at times like this i am glad to have a stable job in a retirment home. Fortunatly for me people have this habit of getting older regardless of the economy. Unlike the Mrs. who worked in a economy depenant field and is now looking for new employment. So I still feel the effects.

T&H

Economic development and devolution is cyclical.

[hoverfly]

Economic development and devolution is cyclical.

When I was a kid, I went through such a cycle where the machine tool industry in my home town was taken over by the Japanese. I never thought I would go through it again......... My dad was a high school teacher and even they were not immune to lay offs. It may be even worse this time around.

[Guy N. Heels]

When I was a kid, I went through such a cycle where the machine tool industry in my home town was taken over by the Japanese. I never thought I would go through it again......... My dad was a high school teacher and even they were not immune to lay offs. It may be even worse this time around.

Well, I really didn't want to be the one spreading all this "sunshine" around, but if you think we've hit bottom, take another drink of coffee. You ain't seen nothing yet. The "light at the end of the tunnel" is really an oncoming train.

[thedesigner]

hi guys, those of us in the old country are in the sh*t too.... Now am i being a bore, but i s this site a hh site or a rant against Bush or the american way ? or western way if you want to be picky... now.. "Man in high heels takes a fall " now that's a thread for this site instead !!! Keep high !!

[tightsnheels]

Ah but we are in general chit chat and the economy does effect what shoes we can afford to buy with what discretionary money we have.

T&H

[BoyLegs]

hi guys, those of us in the old country are in the sh*t too....

Now am i being a bore, but i s this site a hh site or a rant against Bush or the american way ? or western way if you want to be picky...

I can't speak for anyone else, but it was not my intention to devolve into an anti-Bush, anti-American or anti-western rant. I am taking a cold hard look at the economics.

My expectation is that the Democrats will win this year (while mindful of the ability of the Democrats to snatch defeat from the jaws of victory). They will want to dry every teary eye in the country and that takes money. There are only three ways to finance gov't operations: tax, borrow or print. The new administration will choose to print. This will also help with the real estate crisis: if you bought your house at $250k and financed 100%, but it's now worth $200k, you're in the hole. If we inflate the economy until you house is now worth $400k, your problem is solved.

The world financial community realizes this and has priced the dollar recognizing the risk that this will occur. There are laws on the books that require the federal gov't to manage the economy for job growth: the Full Employment Act of 1946 and the Humphrey-Hawkins Act of 1978. I believe that the world generally and the oil producing nations specifically expect the US to print its way out of trouble.

A whole range of economic effects, from longer commute times to global manufacturing competition, are predicated on cheap transportation. If gasoline goes to $6/gallon, it will be economically very destructive.

[johnieheel]

It's already economically destructive at over 3.00 a gal. Most people around where I live do not have very high paying jobs and with all other expenses like food, heat, ele., to name a couple, being so high because of the price of OIL, makes it literally impossible to make ends meet. I would call that economically destructive.

[at9]

It's already economically destructive at over 3.00 a gal.

My heart bleeds. In the UK (and most of Europe) petrol is the equivalent of around $8 per US gallon. Largely due to a different tax regime.

I'm not looking for sympathy.

Fortunately the US is also home to good old fashioned entrepreneurs who are prepared to put their money where they think it will make a profit. At present there's a fair bit (nowhere near enough) of investment going into solar energy in the sunbelt states. The energy in the sun falling on just a small fraction of the unused land in Arizona etc is ample to provide ALL the USA's electricity with plenty left over. Most of the kit is pretty low tech too, mirrors, boilers, turbines etc. There is some high tech trickery needed to give effective overnight storage of energy but it's becoming practical and economic now.

The energy left over could provide for a lot of heating and transportation needs that are currently served by oil.

To all red blooded Americans: where would you rather get your energy? From a bunch of unreliable Arabs or Russians? Or right in your own back yard, done with goold old American knowhow and investment.

Take a decent chunk of the US demand for oil out of the world equation and OPEC will be pleading poverty and begging for mercy.

Northern Europe doesn't have such attractive options - not enough sun. Southern Europe, around the Mediterranean and into north Africa has good conditions too. Though this is politically more fragmented than the US. Countries such as Israel, Egypt, Morocco have got plenty of virtually unpopulated sunny areas. Israel is starting to invest, I don't know about the others.

[hoverfly]

If gasoline goes to $6/gallon, it will be economically very destructive.

Try something less, like $4 a gallon, I can't beleave people sustaining SUVs at such a price. I drive a Celica and get 30MPG, driving to work and back is 75 miles a day. It's taking a bite out of my wallet making only 16.50 an hour just only working 40 hours a week. Currently there is no OT so it's even worse. Bottom line with bills, car payment, home heating oil at $3.00 + a gallon, 10 grand of credit card debt acclaimed between jobs in the last 6 years. Nope we are all ready F%$Ked, the working poor the majority of the economic purchasing power. This country is going flat on it's face before it's over.

[Bubba136]

Try something less, like $4 a gallon, I can't beleave people sustaining SUVs at such a price. I drive a Celica and get 30MPG, driving to work and back is 75 miles a day. It's taking a bite out of my wallet making only 16.50 an hour just only working 40 hours a week. Currently there is no OT so it's even worse. Bottom line with bills, car payment, home heating oil at $3.00 + a gallon, 10 grand of credit card debt acclaimed between jobs in the last 6 years. Nope we are all ready F%$Ked, the working poor the majority of the economic purchasing power. This country is going flat on it's face before it's over.

with 10 K in credit card debt, you really are screwed.

[hoverfly]

Well, I really didn't want to be the one spreading all this "sunshine" around, but if you think we've hit bottom, take another drink of coffee. You ain't seen nothing yet. The "light at the end of the tunnel" is really an oncoming train.

Oh no......we have yet to hit bottom.

[Tech]

Try something less, like $4 a gallon, I can't beleave people sustaining SUVs at such a price. I drive a Celica and get 30MPG, driving to work and back is 75 miles a day. It's taking a bite out of my wallet making only 16.50 an hour just only working 40 hours a week. Currently there is no OT so it's even worse. Bottom line with bills, car payment, home heating oil at $3.00 + a gallon, 10 grand of credit card debt acclaimed between jobs in the last 6 years. Nope we are all ready F%$Ked, the working poor the majority of the economic purchasing power. This country is going flat on it's face before it's over.

If you lived closer to your work you would spend less time in the car burning money, and more time relaxing and sorting out your debt, and would have less maintenance to worry about for your car too.

[hoverfly]

If you lived closer to your work you would spend less time in the car burning money, and more time relaxing and sorting out your debt, and would have less maintenance to worry about for your car too.

The problem is, my work history for the last five years to the employer is not good until last year. I had to expand in order to find fresh opportunities. Also I am dislked for being smarter than a lot of other people, GF has the same problem. People did not look at my skills they looked how dependable I am because that have a huge job pool of "common people". Actualy I am quite dependable. First time ever in my life a company expressed in offering me a job based on my skills and inelegance do to the fact the people I work with are not common people or the way I describe it they are screw balls just like me. Now finding another job closer? First I am staying where it's safe until the end, seconed I love where I work, third you tell me where I can find a job where I can still be there for more than a year. I was unable to find one untill now. For some one who only has a 2 year degree it's very hard to find a good paying job.

[BoyLegs]

Try something less, like $4 a gallon, I can't beleave people sustaining SUVs at such a price. I drive a Celica and get 30MPG, driving to work and back is 75 miles a day. It's taking a bite out of my wallet making only 16.50 an hour just only working 40 hours a week. Currently there is no OT so it's even worse. Bottom line with bills, car payment, home heating oil at $3.00 + a gallon, 10 grand of credit card debt acclaimed between jobs in the last 6 years. Nope we are all ready F%$Ked, the working poor the majority of the economic purchasing power. This country is going flat on it's face before it's over.

I don't want to gloss over the difficulties energy prices cause currently; I am just expecting worse, as explained in earlier posts. Right now we still are so reliant on moving goods by truck that there is a driver shortage. Throughout the first half of the 20th century it was the policy of the Interstate Commerce Commission to erase the respective cost advantages held by trucks for short-haul and trains for long-haul cartage. Then the interstate highway system provided a brand new right-of-way for trucks at minimal cost. Right now there are some rail corridors in development, as described in the Wall Street Journal; these are news items because it is so infrequent to have rail laid down rather than torn up. The rail net in the Northeastern US has been substantially shredded in the past 50 years, including the removal of the most direct route from Buffalo to New York City.

It takes 14 ounces of fuel to move a ton of goods 100 km by train, and about half that by large ship. By truck, 1% of the weight moved will be consumed as fuel every 100 km [Dunnigan, How to Make War, p. 311]. A doubling of fuel costs will be ultimately offset by substitutions, but there will be dislocations during the process because the penalty has to be borne immediately and the substitutions can only be achieved over time.

[Guy N. Heels]

...Fortunately the US is also home to good old fashioned entrepreneurs who are prepared to put their money where they think it will make a profit. At present there's a fair bit (nowhere near enough) of investment going into solar energy in the sunbelt states. The energy in the sun falling on just a small fraction of the unused land in Arizona etc is ample to provide ALL the USA's electricity with plenty left over.

...The energy left over could provide for a lot of heating and transportation needs that are currently served by oil.

To all red blooded Americans: where would you rather get your energy? From a bunch of unreliable Arabs or Russians? Or right in your own back yard, done with goold old American knowhow and investment.

Take a decent chunk of the US demand for oil out of the world equation and OPEC will be pleading poverty and begging for mercy.

Northern Europe doesn't have such attractive options - not enough sun. Southern Europe, around the Mediterranean and into north Africa has good conditions too. Though this is politically more fragmented than the US. Countries such as Israel, Egypt, Morocco have got plenty of virtually unpopulated sunny areas. Israel is starting to invest, I don't know about the others.

To keep America moving would require a trainload of tank cars filled with petroleum that would extend from Atlanta to Washington, DC - that's for one day! If we could get some head's-up thinking and actually build a solar grid in say, Arizona, that would take a huge number of those tankcars out of that very long train. Unfortunately, whatever anyone wants to try is probably going to be too little, too late. I mean like gas is already $3.25 at the pump and any meaningful solar power is years, if not decades away. The same can also be said for wind power. The only other meaningful answer is to find some other way to power our cars. But with the price of oil headed for the stratosphere, we may all find ourselves walking soon.