[Chankama]

Here we go guys. A quick economics lesson "if" u are interested.

A "high" currency value is not always a good thing. Devaluing ones own currency (e.g. a weak dollar) has advantages, as China is demonstrating with its weak yuan. Of course, in the long run it will cause problems. But, a smart fed governor will know when to change the currency value to reap the benefits of the market.

http://news.yahoo.com/s/ap/20050520/...i_ge/greenspan

And here's some advice. Don't just spend ur time reading computer specs and trying to figure out how a CPU works. Read economics too!.. That's how u make $$$ .. Otherwise, we do all the hard work and the **** business people bring in the dough

[MrBebop26]

I know where your going with this and it will hurt the economy more then it will ever do good for it.

-Ryan

[Chankama]

Where do u think I am going with this man?

I think both a high dollar and a weak dollar have advantages - depending on what u wanna do. Creating jobs for example would benefit from a weak dollar.

[FadingTheory]

Weak dollar: good for businesses who export products. Bad for people who buy from exporters.

Strong dollar: Bad for businesses who sell oversees, because they have to sell it at a higher price, at which time noone wants to buy it overseas. Good for buyers of foriegn goods, because we have more money when we convert the dollar to Euro's or whatever.

Weakening the dollar would kill business sales overseas, lower profits and causing a decrease, if anything, in jobs.

THERE IS NO QUICK FIX FOR THE ECONOMY. Let Greenspan do his job.

[Chankama]

Originally posted by FadingTheory
Weak dollar: good for businesses who export products. Bad for people who buy from exporters.

I am assuming u are talking about people in the US in both points. That being said, surely, u mean "bad for people who buy from IMPORTERS (within US - or exporters from other countries)". And yes, domestic exporters will sell more goods.

Strong dollar: Bad for businesses who sell oversees, because they have to sell it at a higher price, at which time noone wants to buy it overseas.

Yup.. that's the general idea. They don't "have" to sell it at a higher price, but that's what usually happens as the USD value of products usually don't go down since people can't bring themselves to lower their own prices (in USD). Thus, a stronger dollar means, the person in the other country has to pay more with their own currency. Thus less demand for the US product.

Weakening the dollar would kill business sales overseas, lower profits and causing a decrease, if anything, in jobs.

No it wouldn't!. It would improve jobs in the US. Weakening the dollar, assuming the *price* of the product does not increase is USD, means that it is "cheaper" in the foreign currency. Thus, foreigners can more easily buy the product. b/c they spend "less" of their money. Thus more "demand" for the US goods are created. When there is more demand, "someone" has to make them in the US. This means, US jobs will increase.

Look at China - in that article I linked. Do you this they have "lost" jobs or "gained" jobs b/c of this fiasco? - they devalued their currency btw.

THERE IS NO QUICK FIX FOR THE ECONOMY. Let Greenspan do his job. [/B]

Agreed. Greenspan is the puppeteer in the puppet show which is the economy.

[Brently]

I just brought home 3 brand new economics books from school. (samples for the teachers to look at before they spend $60,000 on them)