Dollar Doldrums: Low Value Has High Impact

The Declining Value Of A Dollar Is Fanning Inflation And Driving Up The Cost Of Oil And Gas

(AP)  Things in the U.S. sure are tough. Brother, can you spare a euro?

Brazilian Supermodel Gisele Bundchen no longer wants to be paid in dollars. Signs saying "We accept euros" are cropping up in the windows of some Manhattan retailers. A Belgium company is trying to gobble up St. Louis-based Anheuser-Busch, the nation's largest brewer and iconic Super Bowl advertiser.

The almighty dollar is mighty no more. It has been declining steadily for six years against other major currencies, undercutting its role as the leading international banking currency. The long slide is fanning inflation at home and playing a major role in the run-up of oil and gasoline prices everywhere.

Vacationing Europeans are finding bargains in the U.S., while Americans in Paris and other world capitals are being clobbered by sky-high tabs for hotels, travel and even sidewalk cafes. Northern border-city Americans who once flocked into Canada for shopping deals are staying home; it's the Canadians flocking here now.

Everything made in America - from goods to entire companies - is near dirt cheap to many foreigners. Meanwhile, American consumers, both those who travel and those who stay at home, are seeing big price increases in energy, food and imported goods. The dollar has lost roughly a quarter of its purchasing power against the currencies of major U.S. trading partners from its peak in 2002.

Since oil is bought and sold in dollars worldwide, the devalued dollar has made the recent surge in energy prices even worse for Americans, leading to $4 gasoline in the United States. Analysts suggest that of the $140 a barrel that oil fetches globally, some $25 may be due to the devalued dollar.

Further declines in the dollar will add to oil's appeal as a commodity to be traded.

Oil, suggests influential energy consultant David Yergin, is "the new gold."

The limp greenback has had one big benefit to the U.S. economy: Since it makes American goods cheaper overseas, it has helped manufacturers who export and other U.S. based companies with international reach. Exports have been one of the few bright spots in an otherwise darkening U.S. economy.

Franklin Vargo, vice president of international economic affairs at the National Association of Manufacturers, welcomes the dollar slide, as do members of his organization.

"We can see that, when the dollar's not overpriced, that people around the world want American goods and our exports are going gangbusters now," he said.

He doesn't see the dollar as undervalued. He sees it as having being overpriced in the 1990s - and what's happened since as something along the lines of a correction.

Still, Vargo acknowledges the dollar's decline has brought a measure of pain to some consumers. "As the dollar has gone down in value, that has added to the dollar cost of oil. No question. So having the dollar decline is not unambiguously a plus. That's why we say there's got to be a balance there somewhere. What we want is a Goldilocks dollar. Not too strong, not too weak. But just right. And only the market can determine that," Vargo said.

[singingrick]

More fallout from Republicon leadership.

[incog-nito]

For some reason, protectionism is now a dirty word. Historically tariffs were used to protect one nation''s industries against illegal dumping of cheap goods from abroad. Tariffs have been in place for most of America''s history, and have helped make it the number one economic superpower.

But now the once illegal dumping is commonplace, even touted as a good thing. Why? Because the companies doing the dumping are "American", except that they have their manufacturing plants overseas and their corporate headquarters in the Bermudas.

So now the Euro will sooner or later become the currency of choice. More jobs will be lost to cheaper labor elsewhere. The American worker will be just another *******, competing against workers in countries with little regards for human rights, let alone labor or safety standards.

The decline of America is well under way.

[providence_2]

I hope people will Google "Peak oil" for what it is? We Americans have a big big problem down the road!

[ubrew12]

Nancy_Naive said: "The funny thing is that all of the money Bush stole is only worth 40% of what it was."

Halliburtons headquarters were moved to Dubai. Oil hasn''t fallen, its gone up. These guys knew exactly what they were doing as they were selling the American people out.

[naucoming4u]

Experts testified before congress last week, saying that by removing the "Enron loophole", the price of oil would drop between 1/3 to 1/2 of the current price today. Of course that would SERIOUSLY cut into the profits of the big oil companies...

...so guess who is against such a move, guess who has who paid off to ensure that such legislation is not passed!

Yeah, the simpleton "supply/demand" excuse is DOA! The declining dollar does play a role, but no where near the amount that the prices have increased!

But so rarely does the details and the ramifications of the "Enron loophole" get explained/reported in the corporate media. It''s as if... they are profiting from the whole debacle as well! Hmmm.

[ioweign]

More fallout from Republicon leadership.




Posted by singingrick at 11:22 PM : Jul 06, 2008


What leadership ??

[hbevis]

I THINK THAT PART OF THE REASON THE DOLLAR IS WORTH LESS IS BECAUSE OF THE NAFTA BILL THAT BILL CLINTON SIGNED IN THE FALL OF 1994. IT HAS TAKEN OVER 10 YEARS FOR IT TO TAKE FULL EFFECT. AND I AM NOT SURE THAT IT IS IN 100% EFFECT NOW. THAT BILL HAS CUT THE UNION MAN''S THROAT AND SHIPPED MANY JOBS TO MEXICO AS WELL AS THE EQUIPMENT IN THE PLANTS THAT WERE SHUT DOWN AND THE WORKERS LAID OFF. ONE PLANT IN MIDDLE TENNESSEE, CARRIER, WAS SHIPPED 100% TO MEXICO FROM MORRISON, TENNESSEE.

ANYONE THAT DON''T BELIEVE THE NAFTA BILL HAS NOT HURT US VERY, VERY BAD NEEDS TO DO SOME SERIOUS READING AND THINKING.

BUSH HAS NOT MADE MANY POINTS WITH THE AMERICAN PEOPLE BUT NAFTA WAS NONE OF HIS DOING. CLINTON WAS REELECTED AFTER HE SIGNED THE NAFTA BILL.

ALL I SEE ON THE COMMENT PAGES IS CRAZY PEOPLE VENTING THEIR FEELINGS. DO ANY OF YOU HOLD A JOB OR DO YOU JUST BIT*CH TO HERE YOU SELF WHILE YOU DRINK BEER AND CASH YOUR WELL FAIR CHECK.

[hbevis]

CONTINUED

IT HAS GOTTEN RIDICULOUS TO THE POINT WHERE MOST OF WHAT PEOPLE WRITE HAS NOTHING TO DO AT ALL WITH WHAT THE SUBJECT IS AT THE TIME.

IF I HAD MY WAY I WOULD SEND THE MOST OF YOU TO IRAQ ON THE NEXT PLANE AND SEE HOW WELL YOU COULD BRING AN END TO THIS VERY BAD WAR. IT NEEDS TO END FOR SURE, BUT IF YOU PEOPLE THINK THAT OBAMA OR McCAIN EITHER ONE CAN BRING A QUICK END TO THE WAR THEN YOU NEED TO DO SOME MORE THINKING.

WE HAVE HAD A MAJORITY OF DEMOCRATS IN BOTH HOUSES NOW FOR SEVERAL YEARS AND NOTHING HAS BEEN DONE YET. YOU DON''T KNOW AND I DON''T KNOW WHAT KIND OF BRIEFINGS THAT THE LEADERS OF THE HOUSE AND SENATE HAVE BEEN GIVEN REGARDING THE WAR AND NATIONAL SECURITY. THEY ARE BOUND UNDER LAW NOT TO TALK ABOUT WHAT THEY HAVE LEARNED. I HAD A SECRET CLEARANCE FOR ABOUT 40 YEARS AND I KNOW THINGS THAT I WOULD NOT TELL ANYONE, PERIOD.

[edward1975-2009]

From Bush''s flawed strategy in Iraq, to the spineless Democratically controlled Congress, this government has again let the American people down.

[hbevis]

From Bush''''s flawed strategy in Iraq, to the spineless Democratically controlled Congress, this government has again let the American people down.

Posted by Edward1975

YOU ARE 100% RIGHT EDWARD1975. ITS A SHAME THAT EVERYONE CAN''T SEE THAT SAME POINT.

[cdfoxtrot]

What all this proves of course is the folly of America thumbing its nose at the rest of the world and thinking it can do whatever the h_ell it wants, whenever it wants, wherever it wants. America needs the rest of the world a lot more than the rest of the world needs America.

[cdfoxtrot]

hbevis, WHY ARE YOU SHOUTING???

[incog-nito]

hbevis: Both Republicans and Democrats are to blame for "Globalization". McCain has repeatedly said that he will continue the same course with his "free trade" mantra. Obama said he wants to renegotiate some trade pacts, but pretty much conceded that there''s not much anybody can do at this point. Too bad for the American worker.

[hbevis]

hbevis, WHY ARE YOU SHOUTING???

Posted by cdfoxtrot

I AM SORRY ABOUT THAT, BUT I HAVE GOTTEN SO TIRED OF PEOPLE ON THIS AND THAT WITHOUT ANY REASONING. THESE COMMENTS ARE SUPPOSED TO BE ON THE SUBJECT AT HAND. AS YOU WELL KNOW THERE ARE A LOT OF PEOPLE ARE JUST BUSH HATER''S AND ARE JUST RANTING ON AND ON ABOUT NOTHING.

SURE WE NEED TO END THIS WAR AND OUR ECONOMY IS IN VERY BAD SHAPE. WE NEED TO BE WORKING TOGETHER INSTEAD OF AGAINST EACH OTHER.

[hbevis]

hbevis: Both Republicans and Democrats are to blame for "Globalization". McCain has repeatedly said that he will continue the same course with his "free trade" mantra. Obama said he wants to renegotiate some trade pacts, but pretty much conceded that there''''s not much anybody can do at this point. Too bad for the American worker.

Posted by incog-nito
**************************

I AM GLAD THAT WHAT I HAVE SAID HAS BROUGHT SOME PEOPLE FORWARD THAT HAVE SOMETHING TO SAY THAT MEANS SOMETHING.

IF I HAVE UPSET ANYONE I AM SORRY, BUT I HAVE HAD IT WITH ALL THE BAD MOUTHING THAT GOES ON.

[brianbwb-2009]

"The almighty dollar is mighty no more. It has been declining steadily for six years against other major currencies, undercutting its role as the leading international banking currency."

Six years? Is the author like twenty years old or something?

Son, the dollar''s value has been in decline since 1972, when Nixon decided we didn''t need gold in our treasury anymore. The dollar is worth roughly 20% of its 1972 value, so print out the graph, you will see that except for a couple times when artificial bumpa appeared, the dollar has been in a steady decline for the past thirty five years.

Instead of reversing the failed "trickle down" effect, the FED decides to make money even more scarce, punishing the middle and poor for the corruption of the rich.

[hbevis]

IF OBAMA WANT TO RE-DO THE NAFTA BILL THAT WOULD BE GREAT. AND I REALIZE THAT MR. CLINTON DEBATED FOR A LONG ABOUT SIGNING OR NOT TO SIGNING THE BILL AT ALL.

I AM SURE IT CAN''T BE DONE NOW, BUT AS FAR AS I AM CONCERNED IT COULD BE DONE AWAY WITH COMPLETELY.

WHAT WE HAVE DONE IS MAKE THE RICH RICHER AND THE WORKING MAN POORER. THERE IS NO TELLING HOW MUCH MONEY CHANGED HANDS TO GET THIS BILL PASSED. ALL LEGAL OF COURSE....(lol)

[naucoming4u]

Instead of reversing the failed "trickle down" effect, the FED decides to make money even more scarce, punishing the middle and poor for the corruption of the rich.

Posted by brianbwb at 12:52 AM : Jul 07, 2008
...............

So after doing my traditional reading of the Declaration of Independence on July 4 that I do every year...

...I realized that the prime time for a revolution, as granted and encouraged by our founding fathers, has passed us up by almost 100 years...

...immediately after our government implemented the "Federal Reserve" system. Hardly "Federal" at all!

...

[incog-nito]

hbevis: I have relatives and friends who work at anywhere from the low-tech assembly plants to the hi-tech computer, semiconductor, and aerospace firms. And myself and each and every one of them have seen plants close, people getting laid off, and new plants opening up in other countries. In many cases American workers are asked to train people in other countries who will replace them. This trend is continuing right now with no end in sight.

And it''s not just manufacturing, blue-collar workers anymore. Almost every level is affected. There is no shortage of highly skilled, college educated workers in other countries. In fact the opposite is true.

The globalization genie is out of the bottle. The only way to reverse this is to bring back the tariff and some degree of protectionism. But like I said the American people have been sold that this is somehow "bad", even when "free trade" continues to hurt them.

[lemonskink]

I remember the drool-lipped oxen staring into space and chanting: Four More Years, Four More Years. Well, you got your four more at a might costly price. When Bush is back in Crawford with his feet propped up as he put it, he will not be affected at all. No siree Bob, he''ll be paid for all his help. Cheney will be also. They''ll sit on oil company boards and be paid well, they''ll be silent partners in companies they''ll create from the stolen billions. The drool-lipped oxen will simply stare.

[hbevis]

incog-nito

YOU HAVE MADE VERY GOOD POINTS. I KNOW PEOPLE IN MANY LEVELS AT DIFFERENT COMPANIES THAT HAVE LOST JOBS AS YOU STATE. I KNOW A PERSON THAT WORKED FOR CARRIER AND THEY STILL HAVE A JOB STILL HERE IN THE STATES BUT THEY GO TO MEXICO MANY TIMES A YEAR. THE JOB IS A HIGH PAID JOB. UNDER 100K BUT THE JOB MAY NOT LAST OVER A FEW YEARS. OR UNTIL THEY CAN GET SOME MEXICAN TRAINED TO DO THE JOB, IF THAT IS POSSIBLE.

[edward1975-2009]

Those jobs that left, will be returning, with the dollar falling, it will be cheaper to bring the jobs home. Which is why they left originally, to cut cost by outsourcing.

[hbevis]

by Lemonskink

I KNOW EXACTLY WHAT YOU ARE TALKING ABOUT. I AM NOT FOR BUSH OR CHENEY, BUT THEIR TIME IS ALMOST UP. AND WHAT ARE WE GOING TO DO IN THE YEARS AHEAD. REGARDLESS OF WHO GETS IN THE WHITE HOUSE, WHAT ARE WE TO DO AS A PEOPLE AND A COUNTRY. IT SEEMS THAT WE ARE ON THE DOWN SIDE AS A GREAT COUNTRY. I SINCERELY HOPE NOT, BUT?????????

[sistatee-2009]

America is NINE-THOUSAND-BILLION (9 trillion) dollars in debt, which will NEVER be repaid, and the Fed keeps cranking out more worthless dollars, making each dollar even MORE WORTHLESS! And people wonder why we''re in the tank! WE''VE BEEN BROKE SINCE FDR! We''re FRICKING BANKRUPT!

[hbevis]

Those jobs that left, will be returning, with the dollar falling, it will be cheaper to bring the jobs home. Which is why they left originally, to cut cost by outsourcing.

Posted by Edward1975

I REALLY HOPE THAT YOU ARE RIGHT. BUT HAVE YOU LOOKED AT WHAT KIND OF WAGES THAT IS BEING PAID IN MEXICO?
AND HAVE YOU LOOKED AT WHAT THE PRICE OF GAS IS IN MEXICO?

OF COURSE ALL OF THESE JOBS LEAVING THE UNITED STATES IS MOSTLY THE NAFTA BILL COMING INTO EFFECT YEARS AFTER IT WAS SIGNED INTO LAW.

I DON''T KNOW WHAT THE STATUS OF JOB''S, ETC IS IN CANADA BUT I AM GOING TO IT A POINT TO FIND OUT.

[incog-nito]

Edward1975: Yes, those jobs may eventually come back home, but not for a long, long time. Not until Americans'' wages have sufficiently declined to the equivalent of the Chinese worker, for example. A mid-manager friend of mine tells me that professional workers at a plant in China makes about 1/7-8th as much as they do here, and for them that''s A LOT of money.

[edward1975-2009]

Americans have to wake up to many things, namely the fact that it time once again for our elected officials to represent those who have voted them into office. And that we need to start taking of our own country, we have serious problems here and it''s time to address them.

[wardoglrs]

"Paper is poverty,... it is only the ghost of money, and not money itself." Thomas Jefferson to Edward Carrington, 1788

I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them. Thomas Jefferson

%u201CThe end of democracy and the defeat of the American Revolution will occur when government falls into the hands of [private cartel] lending institutions and moneyed incorporations.%u201D
President Thomas Jefferson (a founder of America in condemnation of present and future monopoly money power. 1743-1826)

%u201CCompetition [i.e. capitalism] is a sin.%u201D
%u201CI want to own nothing and control everything.%u201D
%u201CThe ability to deal with people is as purchasable a commodity as sugar or coffee and I will pay more for that ability than for any other under the sun.%u201D
John D. Rockefeller (Fascist cartel robber baron and promoter of the U.S. %u201CFederal Reserve%u201D Act in alliance with the Rothschild

[wardoglrs]

%u201CI don%u2019t care who the government is. Let me control the money and I will control the country.%u201D
Mayer Amschel Rothschild (attributed to the German godfather of the Rothschild bank cartel and grandfather to heir Lord Baron Nathaniel Mayer de Rothschild: owner of the Bank of England and a key promoter of the U.S. %u201CFederal Reserve%u201D Act. 1744-1812)

"Control oil and you control nations; control food and you control the people."
Henry Kissinger (ex U.S. Secretary of State and ongoing agent for the ruling class. Living. Quote 1970)
%u201CThe real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the government of the U.S. ever since the days of Andrew Jackson. History depicts Andrew Jackson as the last truly honorable and incorruptible American president.%u201D


President FDR (on Fascist rule in a letter to corporate con man %u201CColonel%u201D Edward M. House, a founder of the Council on Foreign Relations and political fixer for the ruling class. House also handled President Wilson for the foisting of the privately rigged %u201CFederal Reserve%u201D Corp bank monopoly. 11/21/ 1933)

[wardoglrs]

%u201CWe will have world government whether or not we like it. The only question is whether world government will be achieved by conquest or consent.%u201D
James Paul Warburg (monopoly banker in testimony before the US Senate Committee on Foreign Relations. Warburg was an agent of the Rockefeller-JP Morgan-Rothschild banking bloc and son of Paul Warburg, chief architect of the %u201CFederal Reserve%u201D Corporation, an unconstitutional private bank monopoly set up for cartel hegemony. February 17, 1950)

[occams_taser]

Maybe we can all aspire to work 12 hours per day over a hot stove of toxic waste, making cheap *** to sell in a European version of Walmart.

[occams_taser]

A nation of anti-intellectuals driving gas guzzling pollute-mobiles 50 miles to and fro to go to their "You Want Fries With That?" jobs... cannot really compete with the emerging powerhouses in Asia and the smarter Europeans. We''re toast.

[naucoming4u]

Maybe we can all aspire to work 12 hours per day over a hot stove of toxic waste, making cheap *** to sell in a European version of Walmart.

Posted by occams_taser at 01:43 AM : Jul 07, 2008
............

That''s what the illegal immigrants are doing in this country! That''s why this country allows illegal immigration.

As for the college educated Americans, in computer science for example, they can go work starting around $12 to $14 an hour in programming. Because the "American" corporations feel that if they can hire someone from India at $4 an hour, they question why an American (BA or Masters degree) is worth much more than that!

[sidvicious75]

This can be a good thing, ya know. Means all them imports are going to be more expensive. But most things are imports nowadays, so chances are local producers are gonna up their prices to buy their imports.

Its too bad the lunatic left was so hellbent on keeping their precious national forests prestine, instead of keeping their no good god damned constituents employed.

[tulcak]

ha ha ha... still think bush and the GOP are great? i love it!! you let the bas*t*ar*d into office, you support his war, you are always mouthing off about how "great" America is. Well, its great no longer. Someone told me if I didn''t like it, I should move to another country... So, I did!! ha ha ha. I have been living in Europe now for 2 years, its the best decision I ever made. Keep it up conservatives. Run the country into the ground. I can come back and buy property cheap after converting my euros to dollars, and then rent it or sell it to YOU at ridiculous interest rates. pay back is a ***, isn''t it? Al Gore won the 2000 election and should have been president. Just imagine where we would be now if he had. so... ha ha ha ha ha ha ha. I love it and I hope it hurts you really bad. I hope you go through the same pain I went through because of your stupid man and stupid party. keep it up...

[irliberal]

You caused death and destruction on a scale unknown since WWII.
You destroyed our military readiness by involving us in long pointless wars.
You destroyed our economy.
You destroyed the image of America to the world.

Thanks Bush. Thanks republicons. We''ve had quite enough of your failed, destructive policies. You''re done.

Time for a change.

[babooph]

Without the US propaganda system ,such a very low grade group could never have gotten into position to do so much damage.

[gmcnally2]

The same people that control the Fed and are weakening the dollar are the ones controlling and strengthening the Euro. This is not an accident, an Bush is compliant.

[tulcak]

Posted by rharrin1, click the "publish" button just once please... and, I''d be careful who I call a "moron"....

[missingamerica]

This dollar is great for young folks from other nations who want a U.S. education, though (hey, I''m doing a re-run).

The number of foreign students is up something like 10% since Bush took office thanks in large part to the dollar''s fall...glad to see somebody benefits from his and the Republican''s tax, trade, fiscal, and diplomatic policies.

I just wish it was us.

[vnveteran72]

The Amero is in the Pipeline and will be touted as the answer to all our problems. Just watch as the last of America and the Constitution is sold for a string of beads......G**** the Neocon Zionist Nazis and all their Toadies.....

[whitemale08]

Quit calling them dollars.

They''re worthless Federal Reserve Notes.

[mypatch]

oh oh, guess who is really running this country? It surely isn''t the president or the people!

[aldon61]

Then why do you have a conflict with the people bashing bush as he is very deserving of every bad remark directed at him?


--------------------------------------------------------------------------------

Posted by rharrin1 at 08:47 AM : Jul 07, 2008

That''s an accurate statement.

[kaiyo4u]

It sounds like a lot of you are finally getting the picture...

It is amazing that we had a candidate who stood for the Constitution and getting rid of the Federal Reserve Bank, yet no one wanted him and those who did were called lunatics on the fringe.

Clinton and Daddy Bush killed this country with NAFTA and CAFTA is being invoked too...?

So what are we as a people to do? Let''s hear from those informed peoples as to a solution. Maybe we can overthrow those who have sold us out and take our country back. Remember... They are our servants, not us.

[ubrew12]

Americans to foreigners:
''Hey, Meester, you want to buy my seester?''

[singingrick]

This is what happens when you double the deficit in 7 years. Thanks Bushies!

Now step aside while the rest of the country rallies to fix everything that you''ve broken.

[whitemale08]

Look at your coins now folks.

The Federal Reserve System has taken all of the copper and nickel out of your pennies and quarters and replaced them with Reynolds Wrap aluminum.

Why? Because copper and nickel cost too much to mint for worthless Federal Reserve Notes.

Wake up America!

The Federal Reserve System is a scam!

[drputt45]

I''m trying to find a coyote that will sneak me into Mexico where I can earn some pesos to send to my family in Texas to buy gas. Any suggestions?

[leftyintexas]

I remember when Ronnie Reagan said a weak dollar was good for our economy. Funny how things turn out. We now have what he always wanted. Now here''s something else he said: ''Are you any better off now than you were 4 years ago?'' It''s been eight years now Ronnie. And the answer is ''NO''!