The Conservative Cave
Current Events => The DUmpster => Topic started by: GOBUCKS on October 14, 2009, 07:54:08 PM
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BootinUp (1000+ posts) Wed Oct-14-09 06:32 PM
Original message
Krugman on the dollar
Occasionally I see posts on DU expressing much concern about the falling dollar. So here is one that says there are more important concerns, and in fact the falling dollar actually has an upside in terms of exports. The following links are to his blog where he cautions against the Fed tightening the money supply prematurely because of concerns about the dollar.
http://krugman.blogs.nytimes.com/2009/10/09/modified-go... /
http://krugman.blogs.nytimes.com/2009/10/09/beware-the-... /
http://krugman.blogs.nytimes.com/2009/10/10/the-madness... /
http://krugman.blogs.nytimes.com/2009/10/11/when-should... /
Krugman should be required reading to all who are interested in economic policy imho.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x6776667
Warpy (1000+ posts) Wed Oct-14-09 06:51 PM
1. The falling dollar is also one of the causes of the rising stock market
as foreign investment looks for bargains.
Short term, a sharply falling dollar is a disaster, making things ridiculously expensive while the population is suffering from high unemployment and the threat of the bottom falling out for those who still have jobs.
In the long term, the benefits are great as companies rebuild plants here to take advantage of a highly trained workforce that is the most productive in the world (when they have jobs).
That assumes, of course, that the government is allowed to rebuild our infrastructure to support this new economy.
I thought it was interesting that now the DUmmies can now get their macroeconomic advice and personal financial guidance from a DUmbass fired from a nursing job for drug abuse. Previously, their only source of information was a DUmbass fired from a clerk job at Target for insubordination.
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The falling dollar is great??
Tell that to the poor who will soon find food prices rising by a third. If some of the accounts I have heard come true.
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Usually the economics threads are comedy gold, but everyone over there is asleep at the wheel, or maybe they're feeling as economically illiterate as their moonbat messiah.
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Usually the economics threads are comedy gold, but everyone over there is asleep at the wheel, or maybe they're feeling as economically illiterate as their moonbat messiah.
Did you catch any of their stock market threads last night?
It was late and I was too tired to bring them over but the basic theme was them crying about how the DOW broke 10K yesterday and it wasn't fair because they removed any investments they had from the market. Then there was the other group crying about how the DOW broke 10K and they don't get anything because they never invested anything.
DUmmies :banghead:
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Did you catch any of their stock market threads last night?
It was late and I was too tired to bring them over but the basic theme was them crying about how the DOW broke 10K yesterday and it wasn't fair because they removed any investments they had from the market. Then there was the other group crying about how the DOW broke 10K and they don't get anything because they never invested anything.
DUmmies :banghead:
And it in a couple months it will be entertaining to read about all the wizards that invested at the current highs and are watching their money disappear.
Unless, of course, falling inventories coupled with falling demand and falling cargo and rail shipments is good for the overall economy, and thus the stock market. :whatever:
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And it in a couple months it will be entertaining to read about all the wizards that invested at the current highs and are watching their money disappear.
Unless, of course, falling inventories coupled with falling demand and falling cargo and rail shipments is good for the overall economy, and thus the stock market. :whatever:
Container shipments have fallen by about 10%. They're stacking up. Factory orders are way down, lending is stagnant apparently and I doubt this is going to be a good Holiday shopping season for the retailers. The economy is not in recovery, as much as they want to talk it up.
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Did you catch any of their stock market threads last night?
It was late and I was too tired to bring them over but the basic theme was them crying about how the DOW broke 10K yesterday and it wasn't fair because they removed any investments they had from the market. Then there was the other group crying about how the DOW broke 10K and they don't get anything because they never invested anything.
DUmmies :banghead:
About the only DUmmy that has any sense of economics is the dude who posts in Breaking News all day about the stock market, Oxymandius, or something like that. I still wouldn't let him manage my investments or anything.
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Container shipments have fallen by about 10%. They're stacking up. Factory orders are way down, lending is stagnant apparently and I doubt this is going to be a good Holiday shopping season for the retailers. The economy is not in recovery, as much as they want to talk it up.
I was watching CNBC a while ago, and Dennis Kneale (asshat that he is) was addressing a lot of what you just mentioned, and his response was along the lines of, "C'mon naysayers, can we just get a little hope? Can you just believe with me that things are turning around?" I need to find the video, I was laughing so hard.
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I didn't see those, Scuba. It's always very funny when they talk about the stock market. Of course, they think the Dow is some dude.
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Of course, they think the Dow is some dude.
Beaver's brother.
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Container shipments have fallen by about 10%. They're stacking up. Factory orders are way down, lending is stagnant apparently and I doubt this is going to be a good Holiday shopping season for the retailers. The economy is not in recovery, as much as they want to talk it up.
Not to mention that foreclosures are at another all time high.
Commercial real estate rental rates are at lows never seen.
The deficit is four times higher than last year.
And i still don't have my pony.
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If anybody actually had the market completely doped, he'd be too busy screwing the 19-year-old all-girl crewmembers on his yacht off the coast of Belize to bother posting on either DU or CC.
You pays your money and takes your chances, gold, cash, bonds, or stocks as you judge the risk and direction. Someone will end up being right, but to call economics a real science is like believing global climate modelling is 100% accurate (There are of course idiots who actually think it is, of course).
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If anybody actually had the market completely doped, he'd be too busy screwing the 19-year-old all-girl crewmembers on his yacht off the coast of Belize to bother posting on either DU or CC.
So that explains some of your absences . . . :bow: :tongue:
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So that explains some of your absences . . . :bow: :tongue:
DAT is a 19 year old girl that crews on a yacht?
:bolt:
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DAT is a 19 year old girl that crews on a yacht?
:bolt:
:rimshot: :lmao: :rotf: :lmao: :rotf: :fuelfire:
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DAT is a 19 year old girl that crews on a yacht?
:bolt:
Should I have used the first person to make it easier for you to follow...? And no, I don't get good internet connectivity from there.
:tongue:
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Should I have used the first person to make it easier for you to follow...? And no, I don't get good internet connectivity from there.
:tongue:
I couldn't pass that one up. BSS set it up so good.
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I couldn't pass that one up. BSS set it up so good.
I aim to please! :-) :uhsure: :naughty:
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I didn't see those, Scuba. It's always very funny when they talk about the stock market. Of course, they think the Dow is some dude.
I'll have 100 dow's and a large order of fries please !
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(http://1.bp.blogspot.com/_s7-mNnuqxFk/SsYPkU_3wOI/AAAAAAAABE0/qXClBTHtYlU/S760/bush-miss-me-yet.jpg)
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Warpy
The falling dollar is also one of the causes of the rising stock market as foreign investment looks for bargains.
Short term, a sharply falling dollar is a disaster, making things ridiculously expensive while the population is suffering from high unemployment and the threat of the bottom falling out for those who still have jobs.
In the long term, the benefits are great as companies rebuild plants here to take advantage of a highly trained workforce that is the most productive in the world (when they have jobs).
That assumes, of course, that the government is allowed to rebuild our infrastructure to support this new economy.
Actually, I was just talking to our friend LC EFA about this very thing via PM. I had noticed that in Australia, the interest rates are starting to rise in order to head off inflation as their economy is coming out of this world-wide recession. While Australia is much more socialist that the USA, at least they do intelligent things like seal their borders from foreign workers coming in, I will give them that. But they are a smaller economy and pretty much gov't managed.
But more on topic, as the "world economy" starts to come out of this downturn, places like Australia and the countries in Europe and Asia will have to raise rates, the USA being the last to do so. Dear Leader is purposely devaluing the US dollar. He won't admit it, but that's exactly what he's doing.
Now here's the kicker. Remember when the primitives were complaining about "cheap labor conservatives?" Well, when the dollar is devalued, it does in fact entice corps to manufacture here because the cost is significantly less than overseas. All Dear Leader is doing is creating cheap labor. They try and go union like they want to go union, they'll once again price themselves right out of the market. These jobs are going to have to be cheap labor jobs.
So the warped primitive is correct in that a devalued dollar will invite a manufacturing base back to the USA. But, it'll only be as long as the labor remains cheap, otherwise they're outta here. So after all their complaining, it turns out they're cheering for Dear Leader to become a "cheap labor liberal" with the standard of living for the workforce being significantly less than it was. But it plays into their hands; now they'll get to offer more gov't services to help those people out.
Ever get the inclination liberals like economic dependance and slavery to the gov't? They really need a mommy to tuck them into bed at night. The big, bad world is awful scary to the left.
.
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So the warped primitive is correct in that a devalued dollar will invite a manufacturing base back to the USA.
I don't think this will happen. Nobody in their right mind would put capital into the third world economy Obama is building. Regulations are still more that anywhere on earth. Corporate taxes are the highest and going UP UP UP. Add in that at anytime Obama may decide to take over your company because the union wants him to. Oh and energy is going to go through the roof with cap and tax.
Manufacturing output may go up but no body is going to build a new factory. Look to California to see what a desolate production environment liberals want all across the USA.
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I don't think this will happen. Nobody in their right mind would put capital into the third world economy Obama is building. Regulations are still more that anywhere on earth. Corporate taxes are the highest and going UP UP UP. Add in that at anytime Obama may decide to take over your company because the union wants him to. Oh and energy is going to go through the roof with cap and tax.
Manufacturing output may go up but no body is going to build a new factory. Look to California to see what a desolate production environment liberals want all across the USA.
There are certainly some aspects of this I can't take the time to completely cover. I'll put it this way: If we become the land of cheap labor, then we'll get the jobs back. If we become the land of cheap labor and the gov't imposes restrictive laws on corps and/or otherwise makes them pay a penality should they choose to decide that it's cheaper to go somewhere else, then they might not come at all.
.
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If we become the land of cheap labor, then we'll get the jobs back. If we become the land of cheap labor and the gov't imposes restrictive laws on corps and/or otherwise makes them pay a penality should they choose to decide that it's cheaper to go somewhere else, then they might not come at all.
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My money's on the second option, especially with the group we have in DC now.
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There are certainly some aspects of this I can't take the time to completely cover. I'll put it this way: If we become the land of cheap labor, then we'll get the jobs back. If we become the land of cheap labor and the gov't imposes restrictive laws on corps and/or otherwise makes them pay a penality should they choose to decide that it's cheaper to go somewhere else, then they might not come at all.
Just change our name to New Zimbabwe!!