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Why do they let the dollar fall that way for years and why is it only the France that want to do something about it. They will again fell the pain when the USA need to buy Oil, dollar nothing worth means higher prices for the US to import.
Its a real pain when you depend on a even currency dollar/euro.
[edited by: digitalghost at 8:22 pm (utc) on Dec. 11, 2008]
[edit reason] language [/edit]
I believe the Bush adminstration announced their plan to devalue the dollar early on...maybe 2002? 2004? somewhere in there, but not positive at all. Hence the weak dollar you see today. In fact, we recently were at par with the $CAN...so the dollar has been on the rise.
Oh, I should mention that every time the Fed. Reserve Bank and Treasury promise billions of dollars, they are quite literally printing the money. Putting more cash into the system devalues the dollar and slows the velocity, which has been linked to slower economic growth...strange, huh? Prevailing logic is that everyone needs more money, but historical data suggest more money slows growth... The only way to avoid such a trend, at least that I've heard, is for the Fed to sneakily and skillfully remove the excess cash from circulation. Glad that's not my job.
The point is its hard for those who depend on a good dollar, for the web Bizz.
Fed. Reserve Bank and Treasury promise billions of dollars, they are quite literally printing the money
Right on the money (no pun intended) the value of our dollar is going to disappear faster than an Arizona frost with the printing presses running at full speed. I think I am going to start making my clients pay me in gold!
I think I am going to start making my clients pay me in gold!
A particularly good idea with the federal funds target rate in a range of 0 to .25%! Not to mention the Fed. Reserve has hinted it may begin purchasing t-bills...which is just fancy financial/government speak for printing even more cash[/i]!
Oh, I should mention that every time the Fed. Reserve Bank and Treasury promise billions of dollars, they are quite literally printing the money. Putting more cash into the system devalues the dollar and slows the velocity, which has been linked to slower economic growth...strange, huh
I think is how the cash is utilized and what kind of investments are in place, that would help the economy grow. Printing money, if needed, should be ok. But where the money go at the end of the day. Are they in circulation? Imagine you get a trillion and keep it in a safe. So what happens? Nothing. No one use them, not even you.
Also the currency comparison is not a very good one, as the living costs are subject to the domestic market. For instance with $100 you may buy the grocery for 1 week in states. In Europe although the Euro seems stronger you need to spend more.
You should be able to hedge bets a little bit with some foreign exchange futures.
While this is true, it is neither easy nor practical to do unless you are moving a pretty good chunk of cash around. Doing it for a few thousand dollars may not be worth it once you pay the fees and such.
Can someone explain this please?
The pound is low at 1.46 dollar from 1.97 and I am buying in dollars 2-3 times a week and settling 60 days later but the rate is at the time of transaction.
Can you explain how this works and what the fees would likely be for 10K or 25K dollars ?
Can you explain how this works and what the fees would likely be for 10K or 25K dollars?
My recommendation would be to contact your bank and check to see if they have an international banking department that handles letters of credit, currency exchanges, etc. Not all banks offer these services and even if they do the terms and fees will vary.
In another life I used to work in the international department for a regional bank. I had a client that owned a steel mill and would wire back U.S. dollars to Australia every week, but convert them into Australian pounds in the process. We usually moved over 300K per week for him. His rate was much better than the business that would call us up every once in a while to move over 20K in a one time transaction. The actual exchange rate and fees we charged were very different for these two customers.