Here is another thread on the US economy. post whatever u want. I shall start.


First i would like to address the miniscule increase in jobs recently. I believe that this is mostly due to the fact that buisnesses can get more done with fewer people. Ergo they hire fewer of them and increase efficiancy and lower cost. when the buisnesses grow, they will hire more people.

Second, i have a theory on why the US $ is declining. I think that the government is not trying to slow the decrease in the dollar is because of south america. I think that once the dollar is low enough for fair exchange to take place, the south american economies will use the dollar as the standard much like how Europe uses the euro. Several years ago the exchange rate between Brazil and America was 4 to 1. Now, it is closer to 1.5 to 1. Once this drops a little bit more, Brazil, Argentina, Chile and others will start to convert.

Waddya think???

Originally posted by Evil Homer
First i would like to address the miniscule increase in jobs recently. I believe that this is mostly due to the fact that buisnesses can get more done with fewer people. Ergo they hire fewer of them and increase efficiancy and lower cost. when the buisnesses grow, they will hire more people.

That's your theory? Because the people on the radio stole it!

Originally posted by Evil Homer
Second, i have a theory on why the US $ is declining. I think that the government is not trying to slow the decrease in the dollar is because of south america. I think that once the dollar is low enough for fair exchange to take place, the south american economies will use the dollar as the standard much like how Europe uses the euro. Several years ago the exchange rate between Brazil and America was 4 to 1. Now, it is closer to 1.5 to 1. Once this drops a little bit more, Brazil, Argentina, Chile and others will start to convert.

They're letting the dollar drop in value because it makes US goods cheaper in other countries and helps production pick up as other countries buy more US products. I don't think they're interested in having other countries peg their currencies against the dollar. China is doing that right now and it's driving the US nuts.

You'e an evil dude homer ... lol

They're in a catch 22. Like Lionel said, strengthen the dollar and our goods won't sell.

Weaken the dollar and foreign investment pulls out.

And if you're waiting for trickle down economics from the tax cuts to kick in and create jobs like the media is hyping ... I hope you have a snickers bar with ya.

Shamir in Bangalore needs work. Be sensitive.

Dop

That's your theory? Because the people on the radio stole it!
Yes i did hear it on the radio, and it makes sense. And that is why i believe it.



[QUOTE]They're letting the dollar drop in value because it makes US goods cheaper in other countries and helps production pick up as other countries buy more US products. I don't think they're interested in having other countries peg their currencies against the dollar. China is doing that right now and it's driving the US nuts.QUOTE]

I agree with you 50%. I still believe that the US wants the S. American economies pegged against the dollar, but i do agree with the notion that the US is doing this to get goods into foriegn markets.