USD in Toilet but still buys Chinese Goods!!!

#1
First Post: Nov 26, 2006 8:18pm Nov 26, 2006 8:18pm

gringo loco
| Joined Nov 2006 | Status: Trader | 3 Posts

Why has the USD gone in the toilet? I mean we take a few days off for a holiday......and KAPOOTZ. OK if our dollars are weaker, we can buy less stuff from everyone else except China, right? Don't they have their currency artificially pegged to the USD? From the perspective of people with GBP's, and EUR's, wouldn't they love to exchange some money to buy some....American Real Estate, Corn, Oranges, California Wine maybe...etc. etc....??? Even though it looks like the USD is still in the toilet, don't worry you'll still be able to buy some Chinese Crap.

#2
Nov 26, 2006 9:19pm Nov 26, 2006 9:19pm

Bemac
Joined Jan 2006 | Status: Monarch o' the Glen | 5,561 Posts

Quoting gringo loco

Disliked

Why has the USD gone in the toilet? I mean we take a few days off for a holiday......and KAPOOTZ. OK if our dollars are weaker, we can buy less stuff from everyone else except China, right? Don't they have their currency artificially pegged to the USD? From the perspective of people with GBP's, and EUR's, wouldn't they love to exchange some money to buy some....American Real Estate, Corn, Oranges, California Wine maybe...etc. etc....??? Even though it looks like the USD is still in the toilet, don't worry you'll still be able to buy some Chinese Crap.

Ignored

Spoken like a True Flag Waving American.
Ever been to China? Do you have any idea of their Homland Culture? I'm not talking about your local "Chinatown" or pioneer railroad builders, I am talking about their patience and willingness to perform servile labour if the end result is beneficial.

Not a Flame. Just a cautionary note that your arrogance may cost you.

ps. I just noticed that this is in response to your First Post.
No apology for the negative response but,
Welcome to the Factory.

#3
Nov 26, 2006 9:26pm Nov 26, 2006 9:26pm

Takisd
Joined Dec 2005 | Status: Com Member = Scammer | 5,408 Posts

The chinese crap just got more expensive ^_^

#4
Nov 26, 2006 9:30pm Nov 26, 2006 9:30pm

afemi94ce
| Joined Oct 2006 | Status: Trader | 39 Posts

Hi,

I am having trouble imagining why the Chinese would want to devalue the dollar when they hold so many billions of US Treasury bonds. Seems kind of counterintuitive to get repaid in dollars that are worth less than the ones you bought them with.

Something is going on here and I don't think it's the Chinese. I read that paper and there's nothing in it except a bland description of how their diversification policy works. The actual diversification announcement was days ago. I think some interests are using this as a smokescreen.

One thing's for certain, if I think I understand what the true market movers are, then I know I am wrong. I am just not privy to that kind of information. End of story.

AFF

FOREX = 21st century alchemy.

#5
Nov 26, 2006 10:11pm Nov 26, 2006 10:11pm

gringo loco
| Joined Nov 2006 | Status: Trader | 3 Posts

Yeah BMac as I'm waving my American flag, I'm drinking a Michelob Light too. It's pretty good; But I'm a lightweight on my second one, and I'm buzzing. So, I'm not conjugating properly. I would have used something else for "crap," however, we usually don't leave "stuff" in the toilet and the microsoft word thesaurus didn't have any synonyms for crap.

I guess what I'm getting at is that if the USD is weaker around the world, doesn't that mean that our products would be more attractive to other countries? Also, wouldn't that have a positive affect on GDP and the trade deficit/balance, and the like.

#6
Nov 26, 2006 10:21pm Nov 26, 2006 10:21pm

Bemac
Joined Jan 2006 | Status: Monarch o' the Glen | 5,561 Posts

Quoting gringo loco

Disliked

Yeah BMac as I'm waving my American flag, I'm drinking a Michelob Light too. It's pretty good; But I'm a lightweight on my second one, and I'm buzzing. So, I'm not conjugating properly. I would have used something else for "crap," however, we usually don't leave "stuff" in the toilet and the microsoft word thesaurus didn't have any synonyms for crap.

I guess what I'm getting at is that if the USD is weaker around the world, doesn't that mean that our products would be more attractive to other countries? Also, wouldn't that have a positive affect on GDP and the trade deficit/balance, and the like.

Ignored

NOW your thinking like a Government and NOT a Citizen.

#7
Nov 26, 2006 11:55pm Nov 26, 2006 11:55pm

athalon7
| Joined Oct 2006 | Status: I Hedge | 206 Posts

Quoting gringo loco

Disliked

Yeah BMac as I'm waving my American flag, I'm drinking a Michelob Light too. It's pretty good; But I'm a lightweight on my second one, and I'm buzzing. So, I'm not conjugating properly. I would have used something else for "crap," however, we usually don't leave "stuff" in the toilet and the microsoft word thesaurus didn't have any synonyms for crap.

I guess what I'm getting at is that if the USD is weaker around the world, doesn't that mean that our products would be more attractive to other countries? Also, wouldn't that have a positive affect on GDP and the trade deficit/balance, and the like.

Ignored

This is the way I understand it. The speed of the move is astonishing. I can't see this type of fast movement other than quick profits, which means stop hunting.

"Its not where your at, but where your coming from"

#8
Nov 27, 2006 5:56am Nov 27, 2006 5:56am

dof
| Joined Mar 2006 | Status: Trader | 447 Posts

Quoting gringo loco

Disliked

Why has the USD gone in the toilet? I mean we take a few days off for a holiday......and KAPOOTZ. OK if our dollars are weaker, we can buy less stuff from everyone else except China, right? Don't they have their currency artificially pegged to the USD? From the perspective of people with GBP's, and EUR's, wouldn't they love to exchange some money to buy some....American Real Estate, Corn, Oranges, California Wine maybe...etc. etc....??? Even though it looks like the USD is still in the toilet, don't worry you'll still be able to buy some Chinese Crap.

Ignored

Wine? European people buying Californian wine? Why would they do that?
Compaired to european wine, california wine is water.

Try hard, think fast, die young

#9
Nov 27, 2006 6:48am Nov 27, 2006 6:48am

biwy
| Joined Nov 2006 | Status: Trader | 41 Posts

Remember that, the dollar only begun it's fall.

It's not about fundamentals, it's not about China, it's actually about Euro, US and GBP.

The US. interest rate policy, I am sure, they knew a long ago that the dollar should fall. Do you think that the FED policy makers rose the rates in order to strengthen the dollars... So we can say that little by little the dollar is adjusting. THIS is just forex !!! If you look at the moves, they weren't so big.

The big move for the dollar will be later in 2007, when we have a hint or something that tells us that the Feds policy handled the american economy soflty, or did it to hard...

Anyway i think that until next week, SELLL, SELLL, SELLL !!! and be carefull ; )

happy trading

#10
Nov 27, 2006 9:11am Nov 27, 2006 9:11am