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Post by The Great Aztec Joe on Sept 10, 2010 8:10:52 GMT -8
Trade Deficits are Really Good for us.
Trade Balance Jul -$42.8B
Trade Balance Jun -$49.8B
Our Trade Deficit is decreasing. That is good, but not absolutely essential. Remember with each Billion Dollars that we pump into other countries we fuel their obligation to keep the value of the dollar up.
Consider this: Japan holds on to a Trillion Dollars of our money at any time in their banks and large businesses. If the dollar were to lose value (because of free spending habits of Americans for foreign products) Japan would lose money.
If you have a Trillion Dollars and it loses half its value, they have just lost half a Trillion.
By pumping our money outside of the United States we ensure that foreign countries have to keep it UP in value.
This is a wonderful world in which we live. I wonder when it will come to an end?
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Post by aztecwin on Sept 10, 2010 14:11:18 GMT -8
Don't be foolish Joe. We are now down to around 84 : 1 exchange rate. This is good for trade for the US, but makes Japan and other countries lose faith in the dollar.
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Post by The Great Aztec Joe on Sept 12, 2010 7:24:21 GMT -8
Don't be foolish Joe. We are now down to around 84 : 1 exchange rate. This is good for trade for the US, but makes Japan and other countries lose faith in the dollar. Total nonsense, Win. The Japanese are always trying to keep the Dollar up in value versus the Yen for the simple fact that they want to sell their cars in the US (as well as other products). Do you honestly think they do not want to market to us? Remember, OUR DEBT in their hands puts them in the position of having to keep the Dollar value UP. The Onus is on them and not on us. We have a fantastic system here. Why can't you understand it? |
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Post by aztecwin on Sept 12, 2010 8:21:43 GMT -8
Don't be foolish Joe. We are now down to around 84 : 1 exchange rate. This is good for trade for the US, but makes Japan and other countries lose faith in the dollar. Total nonsense, Win. The Japanese are always trying to keep the Dollar up in value versus the Yen for the simple fact that they want to sell their cars in the US (as well as other products). Do you honestly think they do not want to market to us? Remember, OUR DEBT in their hands puts them in the position of having to keep the Dollar value UP. The Onus is on them and not on us. We have a fantastic system here. Why can't you understand it? I do understand it. The yen floats or at least it used to. We have sunk to a rediculous low value of the dollar. It is in the interest of Japan to have the value at about 115 to 120 to the dollar. |
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Post by The Great Aztec Joe on Sept 12, 2010 9:26:08 GMT -8
Total nonsense, Win. The Japanese are always trying to keep the Dollar up in value versus the Yen for the simple fact that they want to sell their cars in the US (as well as other products). Do you honestly think they do not want to market to us? Remember, OUR DEBT in their hands puts them in the position of having to keep the Dollar value UP. The Onus is on them and not on us. We have a fantastic system here. Why can't you understand it? I do understand it. The yen floats or at least it used to. We have sunk to a rediculous low value of the dollar. It is in the interest of Japan to have the value at about 115 to 120 to the dollar. That might be a little bit too much and would mimic what the Communist Chinese have been doing by flooding the US market with cheap products. I would accept a hundred yen to the dollar. |
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Post by aztecwin on Sept 12, 2010 9:44:46 GMT -8
I do understand it. The yen floats or at least it used to. We have sunk to a rediculous low value of the dollar. It is in the interest of Japan to have the value at about 115 to 120 to the dollar. That might be a little bit too much and would mimic what the Communist Chinese have been doing by flooding the US market with cheap products. I would accept a hundred yen to the dollar. It is too much, but that is what Japan should try to go for in their interest, not ours. I like a weak yen as well since I vacation there quite often. |
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