Dollar in the <snip>..trade deficit soars...adda boy bush..you're the best - Dallas-Mavs.com Forums

reeds · 01-12-2005, 07:15 PM

Dollar Slips As U.S. Trade Deficit Soars

Wed Jan 12, 3:48 PM ET Business - AP

BERLIN - The dollar dropped sharply against major currencies Wednesday after figures showed that the United States' trade deficit soared to an all-time high in November.

The dollar, which made strong gains last week against the euro, has slid back this week. It was edging up Wednesday before the deficit data emerged, but then it dropped. In late New York trading, the euro was quoted at $1.3271, up from an intraday low of 1.3084 and above late Tuesday's rate of $1.3123.

The U.S. currency also lost heavily against the British pound, which jumped to $1.8914 in late New York trading from $1.8776 late Tuesday. The dollar bought 102.35 yen, down from 103.25; 1.1658 Swiss francs, down from 1.1813; and 1.1995 Canadian dollars, down from 1.2170.

Worries over the wide U.S. trade and budget deficits have been the key factor in the dollar's decline in recent months against the euro, which reached a record high of $1.3667 on Dec. 30.

The Commerce Department (news - web sites) said the November deficit was up 7.7 percent from an imbalance of $56 billion in October, which had been the previous monthly record. The new record — $60.3 billion — surprised private economists, who had forecast a slight narrowing in the trade gap.

Last week's mini-rally came as the dollar garnered support from optimism about economic growth in the United States.

While Washington insists it has a "strong dollar" policy, many analysts believe the U.S. government is content to see the dollar fall because it makes U.S. exports cheaper.

Comments reaffirming the "strong dollar" policy this week by U.S Treasury Secretary John Snow were seen by markets as indicating a hands-off approach and failed to strengthen the currency.

On Wednesday, Snow played down the record trade deficit, telling reporters in New York that "the trade gap reflects the fact that Americans are becoming more prosperous."

FishForLunch · 01-12-2005, 08:10 PM

I guess we will all have to wait for Hillary to wave her magic wand.

reeds · 01-12-2005, 09:09 PM

couldnt be any worse- thats for sure

mavsman55 · 01-12-2005, 09:18 PM

Are you still jealous about the election reeds?

jacktruth · 01-13-2005, 12:54 PM

My personal analysis of this trend is:

Thank you labor unions for artificially raising waging to a point that American firms can't compete in the global market!

Mavdog · 01-13-2005, 02:23 PM

Quote:

Originally posted by: jacktruth
My personal analysis of this trend is:

Thank you labor unions for artificially raising waging to a point that American firms can't compete in the global market!

simplistic, and just plain inaccurate.

While union membership has declined, their impact on wages/benefits has commensurately decreased.

The US is not the only nation that has experienced the relocation of manufacturing jobs to lower cost countries.

That is a continual trend which will not go away. The Asian tigers who were the lowest labor costs in the decade past are now losing manufacturing jobs to other economies who have even lower wages than theirs.

Epitome22 · 01-13-2005, 02:53 PM

Not even the most perversely anti-Union Republican would try to claim that was the source of American labor unable to compete with cheap labor from foreign countries.

reeds · 01-14-2005, 12:30 AM

"Are you still jealous about the election reeds?"

MavsMan..at least some things never change....your "clever" post's just keep right on coming..ever thought about being on the debate team in high school? They could use a guy like you...NOT

EricaLubarsky · 01-14-2005, 12:34 AM

haven't heard a Wayne's World reference since January 10th

http://dallas-mavs.com/forums/messag...E=&STARTPAGE=8

mavsman55 · 01-14-2005, 07:07 AM

Quote:

Originally posted by: reeds
"Are you still jealous about the election reeds?"

MavsMan..at least some things never change....your "clever" post's just keep right on coming..ever thought about being on the debate team in high school? They could use a guy like you...NOT

Reeds called me immature? Uh oh, I better change my ways now.

To answer my question.. I see you're still bitter. Oh well. You can yell at me all you want over the next four years. Unfortunately, there's nothing you can do about it. FMY

#1MavsFan · 01-14-2005, 01:42 PM

Mavsman55, you seem to think just because your canidate won, all the issues discussed prior to the election and whats happening now should be dismissed.

"The dollor drops..again"
"my canidate won"

"more troops die in iraq"
"my canidate won"

"no wmd's found"
"my canidate won"

Those type of replys you seem to post in every topic make it seem like you think everything going on (dollor slipping, troops dying, the war, etc) are just a big game.

vinnieponte · 01-14-2005, 02:20 PM

Quote:

Originally posted by: #1MavsFan
Mavsman55, you seem to think just because your canidate won, all the issues discussed prior to the election and whats happening now should be dismissed.

"The dollor drops..again"
"my canidate won"

"more troops die in iraq"
"my canidate won"

"no wmd's found"
"my canidate won"

Those type of replys you seem to post in every topic make it seem like you think everything going on (dollor slipping, troops dying, the war, etc) are just a big game.

I second that. Yes dubya won, does that mean the current US problems before and after are wiped clean, no!

madape · 01-14-2005, 02:21 PM

Do I need to point out that the dollar dropping, in and of itself, is not a bad thing?

The trade defecit is a bad thing, but it's just as bad now as it has been for the last 15 or so years. The falling dollar is actually helping to alleviate that gap. It will increase international demand for US goods, thereby increasing domestic production and spurring employment and wealth generation in this country.

Rhylan · 01-14-2005, 02:33 PM

Can someone knowledgeable enlighten me on just what goods and services are measured when determining our trade deficit? It seems to me like it's not necessarily a bad thing to import more than you export if you're talking about manufactured goods and the like, when you're exporting more higher-value services than you import.

I mean, Taiwan can manufacture stuff cheaper than we can. Good for them. It's cheaper for US companies to import it than do it themselves, so they import. Smart business decision. It results in less business for those manufacturing industries in the US that can't compete with the foreigners.. but guess what? That's economics. Your business model can't compete, so it's time to change. The government isn't obliged to bail you out just because your business can't change with the times. Besides, in the long run, the shift should free up labor in this country to perform higher value tasks than working on an assembly line punching out plastic... so what's the problem?

reeds · 01-14-2005, 06:38 PM

Mavsman55, you seem to think just because your canidate won, all the issues discussed prior to the election and whats happening now should be dismissed.

"The dollor drops..again"
"my canidate won"

"more troops die in iraq"
"my canidate won"

"no wmd's found"
"my canidate won"

Those type of replys you seem to post in every topic make it seem like you think everything going on (dollor slipping, troops dying, the war, etc) are just a big game.

EXACTALLY- well said!! Some just dont get it- and never will.

mavsman55 · 01-15-2005, 10:25 PM

Quote:

Originally posted by: #1MavsFan
Mavsman55, you seem to think just because your canidate won, all the issues discussed prior to the election and whats happening now should be dismissed.

"The dollor drops..again"
"my canidate won"

"more troops die in iraq"
"my canidate won"

"no wmd's found"
"my canidate won"

Those type of replys you seem to post in every topic make it seem like you think everything going on (dollor slipping, troops dying, the war, etc) are just a big game.

....And there's nothing you can do about it.

FOUR MORE YEARS!!!

#1MavsFan · 01-16-2005, 02:36 AM

It's sad that you don't care about any of the issues or whether or not we're at war just as long as your canidate won. And it's even sadder that you admitted that with your last post.

mavsman55 · 01-16-2005, 05:26 PM

Who says I dont care. I'm just sick of people like you smearing him because you're jealous.

#1MavsFan · 01-16-2005, 06:59 PM

Quote:

Originally posted by: mavsman55
Who says I dont care. I'm just sick of people like you smearing him because you're jealous.

Oh, so now stating FACTS and evidence is considered smearing someone? It looks more like that you realize that your canidate has something to do with something going wrong (the dollor dropping) but are too ashamed to say so.