If the dollar value falling is so bad, why are Europeans worried about the rising value of the euro?

Question

German Chancellor Angela Merkel said,"We are happy of course to have solid currency. But for exports it naturally causes problems."

Are the people who cry about our trade deficit also going to cry that now we can compete better to sell our goods overseas? Do these people only cry and criticize or do they have any other function in American society?

well johnny the european leaders are worried.
I say any American who wants to abandon ship GOOD RIDDANCE

Answer 1

With a strong Euro there is potential for a European made goods to not fare well due to it being priced out of people's wallets.

Answer 2

Unemployment interior the u . s . a . reasons human beings to record financial disaster, some could have their residences circulate into foreclosures. The banks and financial institutions lose money. much less production is the effect. the entire us of a loses. Blame it on deregulation, jobs being despatched distant places, OPEC, wars interior the midsection East. all of it has a snowball result. Like dominos, organisation circulate under, some are compelled to merge. It in basic terms gets worse. This mixed with the matters in Greece and the Euro tend to devaluate the USD and the Euro. while this happens,the Philippines additionally suffers. So, confident, this is user-friendly economics. all of us could be stricken. A twelve months in the past the USD grew to become into 40 seven to a million Peso. Now this is fluctuating from 40 4 to 40 5 to a million. i'm ok whether it must be greater constructive. If foreigners can not purchase as plenty interior the Philippines, then the Philippines loses. It relies upon on tourism, OFWs, and ex-pats. have self assurance it or not.

Answer 3

The Euro is NOT rising. Relative to the dollar, it may look that way, but try comparing it to gold. The truth is the dollar is inflating much faster than the Euro or the Canadian dollar. This is because of the Federal Reserve.

Politicians can get money three ways: raise taxes, borrow, or inflate the currency. They are unable to inflate the money when it is backed by gold and silver. That's the real reason that politicians almost universally hate the idea of hard money.

"Dollars" are created when the Treasury monetizes the debt. It does this by selling treasury bonds to the Federal Reserve. These bonds pay interest. The Federal Reserve pays for these bonds with federal reserve notes that it creates out of nothing. The government now uses these newly created federal reserve notes to pay it's obligations. The largest factor at present is what is going on in Iraq and Afghanistan. Your government is spending much more than it is taking in by taxes. So, this deficit is being payed for by newly created paper. There is really no limit on how many "dollars" the Federal Reserve can create. They benefit from the creation of new federal reserve notes, and the politicians benefit. It is the taxpayer who experiences the rising prices that accompany inflation.

Ron Paul wants to end inflation by returning to honest money backed by gold and silver. He wants to end the perpetual undeclared wars around the globe, and the growing police state at home.

Ron Paul has my vote in 2008.

Answer 4

Yes it does make exports difficult but no one will want to invest in a weak currency. Even models now do not want to be paid in dollars. MODELS! Not exactly the smartest knives in the box. Why? Because they dont want any amount they have been paid to decrease so much in value. Dollars are going to become like rubles.

Answer 5

The entire system is prone to swinging back and forth.

The Japanese learned this lesson well when they were dominating the electronic and automotive industries several decades ago.

Their currency climbed against ours and they bought into US land and industry. Then the pendulum swung back and their purchases dropped in value, bankrupting some.

Goes to show, being careful and taking small steps (especially diversification) goes a long way.

Answer 6

Because if it'll become increasingly difficult to sell European stuff outside of Europe. The same way it is now pretty cheap for us to travel to the US, and import US goods.

Answer 7

I don't give a rats butt about the Europeans I'm looking out for number 1# me.

A low dollar value make things cost more for us.

Think about it............

What type of currency is Oil bought and sold with?

(US dollar)

and other thing would be in how the Bush administration
was bragging up the 14,000 stock market.
well them stock are not worth as much with a weak dollar.

Answer 8

Bad for their exports but I would expect plane loads of Europeans and Canadians as well vacationing in Florida this winter and buying up real estate and consumer goods with their new found wealth ...... may help real estate slump in south Florida

Answer 9

with our dollar falling and their money rising, it presents a manufacturing problem for them. it costs more to manufacture goods there and we don't have the money needed to buy them at their prices. this is why we buy so many goods from countries that have cheap labor costs.

Answer 10

I had dinner with three Germans last night.

They hid their worry quite well with all that laughter - and they kept making the 'small' gesture with their thumb and fore finger when talking about the dollar.

Man I'm tired of Bush...