[I_Like_Plants]

$this->bbcode_second_pass_quote('Roccland', '
')
With the cost of energy poised to shoot to the moon - I am not convinced these US shoe making factories are going to be economically viable.

[Roccland]

[firestarter]

Dollar in uncharted territory. Yen in Feb redux. Popcorn microwavin.

[firestarter]

A useful link tomorrow?:

Circut breaker

[Roccland]

[jasonraymondson]

link

{Shorten your links to prevent side scrolling please-jato}

[evilgenius]

Hank Paulson and Ben Bernanke went to China in December and fixed the downfall. The wealth is tied to the structure in Asia, not Europe so as to fight the Euro bourse that the Russians are trying to set up. Keep an eye on the yen.

The current call for lower taxes fits this picture as well. The rich are going to be receiving income from gov bond disbursements soon and they don't want that kind of money to be taxed. As long as it fits the Asian situation bond yields will be good money, a lot more money than a sucker will get in the market.

[Euric]

$this->bbcode_second_pass_quote('dukey', 'w')orst case scenario
they liquidate all the assets of your country.

[Euric]

$this->bbcode_second_pass_quote('strider3700', '')$this->bbcode_second_pass_quote('Bewildebeest', 'S')o how far can the USD fall relative to other fiat currencies?

When would you consider it oversold?

[Euric]

$this->bbcode_second_pass_quote('ElijahJones', 'T')he decline of the dollar won't fix itself. It is not a negative feedback loop, it is a realization on the part of the world that the US economy has some major liabilities, short-term, mid-term and long-term. We will get some boost to the economy from the feel good effect of getting out of Iraq, but all of our major domestic issues are major risk items for the economy within a decade. Devaluing the dollar to solve the trade deficit does not in fact change the underlying principles have have created that deficit. Trying to fix the trade deficit by devaluing the dollar at a time when wage growth is stagnant pulls on CPI. Consume spending is %70 of the American economy. Shave 5% off of that and you have a recession.

I see the dollar eventually (5 - 10 years out) being worth something around .5 euros, or alternatively the .0005 euros it depends on whether we address the foaming chest wounds or just sit there girgling out the words "I'm not a widow."

[Euric]

$this->bbcode_second_pass_quote('firestarter', '')$this->bbcode_second_pass_quote('Tyler_JC', '
')
From July, 2004 to July, 2007, the dollar fell in value by 10%.

A few more of those and the trade picture will fix itself, thus strengthening the dollar.

[Euric]

$this->bbcode_second_pass_quote('chuck6877', 'T')he U.S. dollar has been in a descending parallel channel since 2002.

[Euric]

$this->bbcode_second_pass_quote('firestarter', '')$this->bbcode_second_pass_quote('I_Like_Plants', '')$this->bbcode_second_pass_quote('firestarter', 'T')yler_JC,
Not to be rude, but do you understand what globalisation means relative to America's manufacturing of tradeable goods....and services? Have you missed the emasculation of America's manufacturing base subsequent to the mid 90's trade agreements? Are you like Tom Friedman, and believe the world is flat? Please elaborate on how a falling dollar magically makes America a manufacturing giant again, since it hasn't for the past fifteen years. Do you see anything negative relative to the American economy? I'm trying to plumb where you are coming from. You confuse me as to your economic worldview.

[I_Like_Plants]

I don't mean restarting whole factories though, I mean guys/gals starting up making shoes in their garages. Literally. High quality shoes do not take a lot of fancy equipment to make. You can make a lot more of them if you have fancy equipment, but you can make them with mostly hand labor and sell them and sell them directly. I'm really talking about from the ground-up here.

[Tyler_JC]

The Good News About The Weak Dollar

$this->bbcode_second_pass_quote('', '
')The weak dollar is a source of humiliation, for a nation's self-esteem rests in part on the strength of its currency. It's also a potential economic problem, since a declining dollar makes the steady diet of imports on which Americans subsist more expensive and exerts upward pressure on interest rates. And yet there are substantial sectors of the vast U.S. economy—from giant companies like Coca-Cola to mom-and-pop restaurant operators in Miami—for which the weak dollar is most excellent news.
The rusted industrial regions of upstate New York that border Canada have little going for them economically. For the past few decades, they've lost industries and population to places with more-salubrious climates, like pretty much everywhere else. But the strong Canadian dollar is encouraging more cross-border shopping. Chuck Skelling, manager at Towne BMW in the Buffalo suburb of Williamsville, receives a few calls per day from status-conscious Torontonians inquiring about new Bimmers. Because Canadian car prices are based on old exchange rates, the same BMW 335 convertible that retails for $48,000 in the United States sells for the equivalent of $63,000 in Toronto.

The strong euro is making even the most expensive U.S. real-estate markets look reasonable. As a result, residents of Ireland, until recently one of the weakest economies in the developed world, are helping keep New York's condo market aloft. When he built the Centria, a 158-unit, 33-floor wedge across the street from Rockefeller Center, Jules Demchick, chairman of New York-based J.D. Carlisle Development Corp., focused his sales efforts in Dublin. "About 90 percent of the sales have been to Irish people," he said. "We didn't even market it in the U.S."
....
The money tourists spend helps put a dent in our chronic trade deficit. So do exports, which, thanks in part to the weak dollar, soared 11 percent between May 2006 and May 2007. For the first five months of 2007, the trade deficit actually fell 7 percent from 2006.

[firestarter]

$this->bbcode_second_pass_quote('Tyler_JC', '[')url=http://www.slate.com/id/2170745/fr/flyout]The Good News About The Weak Dollar[/url]

$this->bbcode_second_pass_quote('', '
')The weak dollar is a source of humiliation, for a nation's self-esteem rests in part on the strength of its currency. It's also a potential economic problem, since a declining dollar makes the steady diet of imports on which Americans subsist more expensive and exerts upward pressure on interest rates. And yet there are substantial sectors of the vast U.S. economy—from giant companies like Coca-Cola to mom-and-pop restaurant operators in Miami—for which the weak dollar is most excellent news.
The rusted industrial regions of upstate New York that border Canada have little going for them economically. For the past few decades, they've lost industries and population to places with more-salubrious climates, like pretty much everywhere else. But the strong Canadian dollar is encouraging more cross-border shopping. Chuck Skelling, manager at Towne BMW in the Buffalo suburb of Williamsville, receives a few calls per day from status-conscious Torontonians inquiring about new Bimmers. Because Canadian car prices are based on old exchange rates, the same BMW 335 convertible that retails for $48,000 in the United States sells for the equivalent of $63,000 in Toronto.

The strong euro is making even the most expensive U.S. real-estate markets look reasonable. As a result, residents of Ireland, until recently one of the weakest economies in the developed world, are helping keep New York's condo market aloft. When he built the Centria, a 158-unit, 33-floor wedge across the street from Rockefeller Center, Jules Demchick, chairman of New York-based J.D. Carlisle Development Corp., focused his sales efforts in Dublin. "About 90 percent of the sales have been to Irish people," he said. "We didn't even market it in the U.S."
....
The money tourists spend helps put a dent in our chronic trade deficit. So do exports, which, thanks in part to the weak dollar, soared 11 percent between May 2006 and May 2007. For the first five months of 2007, the trade deficit actually fell 7 percent from 2006.

[Euric]

$this->bbcode_second_pass_quote('Tyler_JC', '[')url=http://www.slate.com/id/2170745/fr/flyout]The Good News About The Weak Dollar[/url]

$this->bbcode_second_pass_quote('', '
')The weak dollar is a source of humiliation, for a nation's self-esteem rests in part on the strength of its currency. It's also a potential economic problem, since a declining dollar makes the steady diet of imports on which Americans subsist more expensive and exerts upward pressure on interest rates. And yet there are substantial sectors of the vast U.S. economy—from giant companies like Coca-Cola to mom-and-pop restaurant operators in Miami—for which the weak dollar is most excellent news.
The rusted industrial regions of upstate New York that border Canada have little going for them economically. For the past few decades, they've lost industries and population to places with more-salubrious climates, like pretty much everywhere else. But the strong Canadian dollar is encouraging more cross-border shopping. Chuck Skelling, manager at Towne BMW in the Buffalo suburb of Williamsville, receives a few calls per day from status-conscious Torontonians inquiring about new Bimmers. Because Canadian car prices are based on old exchange rates, the same BMW 335 convertible that retails for $48,000 in the United States sells for the equivalent of $63,000 in Toronto.

The strong euro is making even the most expensive U.S. real-estate markets look reasonable. As a result, residents of Ireland, until recently one of the weakest economies in the developed world, are helping keep New York's condo market aloft. When he built the Centria, a 158-unit, 33-floor wedge across the street from Rockefeller Center, Jules Demchick, chairman of New York-based J.D. Carlisle Development Corp., focused his sales efforts in Dublin. "About 90 percent of the sales have been to Irish people," he said. "We didn't even market it in the U.S."
....
The money tourists spend helps put a dent in our chronic trade deficit. So do exports, which, thanks in part to the weak dollar, soared 11 percent between May 2006 and May 2007. For the first five months of 2007, the trade deficit actually fell 7 percent from 2006.

[Baldwin]

The USD is now 80.03 That is right..... .03 from crossing into likely crash territory.

It will be one interesting week...