Euro vs Dollar

[John]

The US Dollar seems to fall beyond commonly-expected limits.
How does it impact the EU economy? The prices on food and oil are rising anyway.
What is happening?

[Andrewz]

The mortgage crisis in the USA seems not to be solving, probably this is one of the core reasons the dollar depreciates.

[sasha]

Americans always had low price of oil inside USA, I think that energy crisis took its toll too. Also there are crisis of food in the world. Many things in the world will change soon if those crisis continues. Also China, India and Brasil emerged as powerfull economies, and they are now competition to USA and Europe products. Many things are already different in this Brand New World...

[Stefan]

Why there is instantly a crisis of food in the world?

[John]

Why there is instantly a crisis of food in the world?

It's because of oil prices and because poor people in India and China have more money and can buy more food.

[Jfish]

I also heard that a lot of land is used to grow rape for biofuel instead of growing food.
That is another reason why prices of food grow.
But how is this related to Dollar falling?

[sasha]

I think that in every high developed country, the most important task is to find a way to rid of the accumulated money. So they throw out the money to the wepons, space-exploring or similar things which might be usefull in the future. USA made so much weapons that it isn't sane to produce more, so they invented BinLaden, Sadamm, Kosovo conflict and they are searching for all places that could be interesting for weapon usage. But the world isn't restless enough and it bother the USA...

I will try to explain my standing point...

When a businessman is succesfull he is prospering, employing people, investing in future, strugle with competition, but at one point he realize that he have enough and it isn't so important to be succesfull anymore, so he looses the edge. On the other hand he use more technology and less human, making more money with less effort involved. At one point he reaches point of saturration. To reach this point you nead to reach huge proportions. Before that point, or at that point, it is neaded to have new motives to go on, because money and welth have no meaning as it were before. When whole society reaches that point everything falls apart. State has its mechanisms to take the ballast, it gives it to army, scientist, better social security, but obviously state reaches that point too, then you have all kinds of economical problems. It isnt wise to give away that money or to destroy it directly, because than the money and welth would loose its nature which could destroy society also.

Looking that way, it is better to be underdeveloped a little then to be overdeveloped. Overdeveloped countries can't stay that for long. They are tracing the road, but naturally they are switching at the top. The value that the world made untill now and which is simbolically preserved in money is more that the world neads.

The problem could be solved by spreading that value through all the world, thats what we were looking at past decades. USA do not cooperate with that laws of nature and it has problems because of its disobedience. NATO and US army are rigid forces which do not understand this and are trying to preserve old ways. They are obstacles to philosophical developement of world which favor modesty instead of greed. There are much power in hands of some individuals in USA that do not understand the curse wich follows power, they are looking at it to shallow.

[euigorwithyou]

We shouldn't forget the impact of expances on war in Iraq. That's one of reason why the dollar droped. Economic reasons are always good. But who will weigh the impact of war on dollar's power ?

[sasha]

I think that war are good for dollar because it stimulate wepons production which wouldn't be neaded if there are no war. It gives noneconomic motives for business (like "lets produce more and kick some ass", or "I am fighting for my country by working"). Without enemy the artificial fealings like nationalism and xenophobia would die and they are some strong feelings, but irrational also.

[Terry]

I think that war are good for dollar because it stimulate wepons production which wouldn't be neaded if there are no war. It gives noneconomic motives for business (like "lets produce more and kick some ass", or "I am fighting for my country by working"). Without enemy the artificial fealings like nationalism and xenophobia would die and they are some strong feelings, but irrational also.

wars have always been the most profitable businesses for bankers, weapon producers, oil enterprises etc.

[Benn]

the dollar keeps depreciating while I receive my salary in dollar currency. That's f...... bad, what should I do?

[sasha]

When you recieve money, you change it for better currancy fast, SCH or EUR. It wouldn't help the dollar, but it'll help you.

[Faw_Peter]

you can agree to receive money in euros. Your employer would understand that

[Hardy]

U.S. Dollar Euro Position :mrgreen:

[clearman]

That's real happened, man. It's true. The war costs and the people suffers.

[Guest]

the dollar keeps depreciating while I receive my salary in dollar currency. That's f...... bad, what should I do?

You should wait a little. After president elections in US it will change, Abama seems to be intelligent enough to solve this problem.

[Benn]

No, it doesn't solve in an instant. It's a matter of time - this is global economy. Obama may not be so competent in economy

[M.Helen]

Today: 1$ = 0.63 euro

[Steven]

See the scheme of dollar breakdown:

[Terry]

resulting from this graphic it seems that the dollar was strongest ever in 1985. I don't think it will manage to beat its own record in the future.

[sasha]

I hope so. $ stability is important for the whole world. But, inflation is more or less inreversible process. The government is making some profit of controlable inflation. If you get ignorrant government then inflation starts to be greater, but if government is wise a little it wuldn't let it happen even it could be good for it at the moment.
Deflation could bring great damage for budget and weakens economy. It has something to do with balance of import and export of a country, but I don't want to bore you to death with this... :roll:

[Benn]

a modern, market economy should not be ruled by the government at all. These are the local businessmen (importers and exporters) who build the economy, and, consequently, inflation/deflation.

[Terry]

actually the government should interfere, even if it's market economy. For example it can regulate the aggregate of local currency on the market, by fixing interest rates.

[sasha]

Public management is controlling and charishing macro flows of interests using laws. Sometimes they even try to influence particular corporations without law.

For example, there are enterprizes which are conducting EU help toward underdeveloped counties. These are making profit in this process and getting better positions on their own markets because of political processes toward other countries.

There is a suptile intervention. There could be corruption involved too because it is conducted in "international waters". On the other hand, many projects conducted this way bring greater profit to the helper than to country that is helped.

Maybe this kind of behaivor is partly guilty for global instability.

[Terry]

Sasha, I think that's great such enterprises exist. An enterprise is a part of the social life, and if it can help its country, why shouldn't it? Of course it makes profit out of this, but it can't offer services for free.