IMF Warns Of Abrupt Dollar Fall

[Ellis]

I personally loved the article. Rato is basically saying that Japan and China can't sell goods to America forever. They have to start making their rapidly growing economies self reliant. Also, Countries like Japan and China keep the value of the currencies low ON PURPOSE so that their goods sell cheap in America. This is not a practice that can be sustained over a long period of time. Eventually, as the article points out, an inflection point occurs and everything levels off. The countries that are purposefully keeping their currency low against the Dollar will suffer.

[Ellis]

I personally loved the article. Rato is basically saying that Japan and China can't sell goods to America forever. They have to start making their rapidly growing economies self reliant. Also, Countries like Japan and China keep the value of the currencies low ON PURPOSE so that their goods sell cheap in America. This is not a practice that can be sustained over a long period of time. Eventually, as the article points out, an inflection point occurs and everything levels off. The countries that are purposefully keeping their currency low against the Dollar will suffer.

[PleaseBlitz]

I personally loved the article. Rato is basically saying that Japan and China can't sell goods to America forever. They have to start making their rapidly growing economies self reliant. Also, Countries like Japan and China keep the value of the currencies low ON PURPOSE so that their goods sell cheap in America. This is not a practice that can be sustained over a long period of time. Eventually, as the article points out, an inflection point occurs and everything levels off. The countries that are purposefully keeping their currency low against the Dollar will suffer.

The IMF chief recanted his earlier statements anyways.

http://online.wsj.com/public/article/SB119246369890559367.html

IMF Chief Says Dollar Has Room to Fall

By Bob Davis

Word Count: 531

WASHINGTON -- After a week of saying the dollar had fallen too far recently, International Monetary Fund chief Rodrigo de Rato now says the dollar has more room to fall over the next several years.

Over the "medium term," which is three to five years in IMF parlance, "we still see room for further depreciation," Mr. de Rato said. The euro, he said, is "very near" its equilibrium value.

Mr. de Rato first said the dollar had fallen too far last week in an interview with the Financial Times. He repeated that in Madrid and in a session with The ...

[PleaseBlitz]

I personally loved the article. Rato is basically saying that Japan and China can't sell goods to America forever. They have to start making their rapidly growing economies self reliant. Also, Countries like Japan and China keep the value of the currencies low ON PURPOSE so that their goods sell cheap in America. This is not a practice that can be sustained over a long period of time. Eventually, as the article points out, an inflection point occurs and everything levels off. The countries that are purposefully keeping their currency low against the Dollar will suffer.

The IMF chief recanted his earlier statements anyways.

http://online.wsj.com/public/article/SB119246369890559367.html

IMF Chief Says Dollar Has Room to Fall

By Bob Davis

Word Count: 531

WASHINGTON -- After a week of saying the dollar had fallen too far recently, International Monetary Fund chief Rodrigo de Rato now says the dollar has more room to fall over the next several years.

Over the "medium term," which is three to five years in IMF parlance, "we still see room for further depreciation," Mr. de Rato said. The euro, he said, is "very near" its equilibrium value.

Mr. de Rato first said the dollar had fallen too far last week in an interview with the Financial Times. He repeated that in Madrid and in a session with The ...

[Baculus]

Yeah, that sounds great: The dollar has room to fall even more. So we are just delaying the inevitable; just fantastic news, right?

The IMF is a rather dubious organization in the first place, with part of its function to basically reorganize the world's wealth for the benefit of large banks, as well as secure resources for trans-national corporations.

Maybe we need to do something about our monetary system so that we can get away from inflationary spending and dollar creation and fractional lending. Wouldn't that just be brilliant? Can you just imagine if your dollar did not always devalue?

[Baculus]

Yeah, that sounds great: The dollar has room to fall even more. So we are just delaying the inevitable; just fantastic news, right?

The IMF is a rather dubious organization in the first place, with part of its function to basically reorganize the world's wealth for the benefit of large banks, as well as secure resources for trans-national corporations.

Maybe we need to do something about our monetary system so that we can get away from inflationary spending and dollar creation and fractional lending. Wouldn't that just be brilliant? Can you just imagine if your dollar did not always devalue?

[iheartskins]

I think most economists would say that inflation is a necessary evil for economic growth Baculus.

Sure I'd be psyched if a new car cost $3000 instead of $15000, but not if it meant my job paid $5 an hour instead of $25 and other costs remained the same.

[iheartskins]

I think most economists would say that inflation is a necessary evil for economic growth Baculus.

Sure I'd be psyched if a new car cost $3000 instead of $15000, but not if it meant my job paid $5 an hour instead of $25 and other costs remained the same.

[Baculus]

I think most economists would say that inflation is a necessary evil for economic growth Baculus.

Sure I'd be psyched if a new car cost $3000 instead of $15000, but not if it meant my job paid $5 an hour instead of $25 and other costs remained the same.

Inflation is a necessary evil, that I can agree, but that doesn't mean it can create flaws in an economic system, or can be a flawed method of economic planning.

[Baculus]

I think most economists would say that inflation is a necessary evil for economic growth Baculus.

Sure I'd be psyched if a new car cost $3000 instead of $15000, but not if it meant my job paid $5 an hour instead of $25 and other costs remained the same.

Inflation is a necessary evil, that I can agree, but that doesn't mean it can create flaws in an economic system, or can be a flawed method of economic planning.

[jbooma]

Could you limit your threads to 1 every other day as a courtesy to the rest of us? The Tailgate is not your own personal billboard to put your political leanings on display. It is a place where lots of us come for different things... humor, entertainment, politics, sports, friendship, etc.

Maybe you could be more considerate in that regard? :whoknows:

.......

By the way one good thing we are seeing from the euro beeing higher then the dollar is more europeans coming to the us for vacations and buying property etc....

This helps everyone.

I was in Ft Lauderdale this past weekend and locals were telling me they are visiting and traveling more now because of the currency. For those that understand econmics that money is then put into our economy.

[jbooma]

Could you limit your threads to 1 every other day as a courtesy to the rest of us? The Tailgate is not your own personal billboard to put your political leanings on display. It is a place where lots of us come for different things... humor, entertainment, politics, sports, friendship, etc.

Maybe you could be more considerate in that regard? :whoknows:

.......

By the way one good thing we are seeing from the euro beeing higher then the dollar is more europeans coming to the us for vacations and buying property etc....

This helps everyone.

I was in Ft Lauderdale this past weekend and locals were telling me they are visiting and traveling more now because of the currency. For those that understand econmics that money is then put into our economy.

[Larry]

BTW, I thought "IMF" = Impossible Missions Force :cool:

We must both be old farts.

[Larry]

BTW, I thought "IMF" = Impossible Missions Force :cool:

We must both be old farts.

[portisizzle]

By the way one good thing we are seeing from the euro beeing higher then the dollar is more europeans coming to the us for vacations and buying property etc....

This helps everyone.

I was in Ft Lauderdale this past weekend and locals were telling me they are visiting and traveling more now because of the currency. For those that understand econmics that money is then put into our economy.

I was in Istambul two weeks ago and the people there were complaining that Americans were not spending.....because of the weakness of the dollar.

A weak dollar hurts more than just us.

[portisizzle]

By the way one good thing we are seeing from the euro beeing higher then the dollar is more europeans coming to the us for vacations and buying property etc....

This helps everyone.

I was in Ft Lauderdale this past weekend and locals were telling me they are visiting and traveling more now because of the currency. For those that understand econmics that money is then put into our economy.

I was in Istambul two weeks ago and the people there were complaining that Americans were not spending.....because of the weakness of the dollar.

A weak dollar hurts more than just us.

[jbooma]

I was in Istambul two weeks ago and the people there were complaining that Americans were not spending.....because of the weakness of the dollar.

A weak dollar hurts more than just us.

I don't disagree with that at all, it does change a lot of what we have known in the past so it is going to be interesting to see it play out.

This might be a good thing though for the world's economy if you think about it. It gets other nations that were dependent on money from us start to figure out what they need to do. If every country can be dependent on their own then it will help everyone in the long run.

[jbooma]

I was in Istambul two weeks ago and the people there were complaining that Americans were not spending.....because of the weakness of the dollar.

A weak dollar hurts more than just us.

I don't disagree with that at all, it does change a lot of what we have known in the past so it is going to be interesting to see it play out.

This might be a good thing though for the world's economy if you think about it. It gets other nations that were dependent on money from us start to figure out what they need to do. If every country can be dependent on their own then it will help everyone in the long run.

[Jumbo]

We must both be old farts.

I still occasionaly play the Lalo Schifrin original theme on vinyl.

[Jumbo]

We must both be old farts.

I still occasionaly play the Lalo Schifrin original theme on vinyl.

[Ancalagon the Black]

A weak US dollar is fantastic for domestic (US) tourism, American companies that export overseas and companies whose primary expenditures are in US dollars.

It is bad for most consumers (who overwhelmingly buy imported goods), US travellers abroad, American importers and companies whose primary expenditures are in foreign currencies.

[Ancalagon the Black]

A weak US dollar is fantastic for domestic (US) tourism, American companies that export overseas and companies whose primary expenditures are in US dollars.

It is bad for most consumers (who overwhelmingly buy imported goods), US travellers abroad, American importers and companies whose primary expenditures are in foreign currencies.

[Larry]

It is bad for most consumers (who overwhelmingly buy imported goods), US travellers abroad, American importers and companies whose primary expenditures are in foreign currencies.

So, it's good for Disney's parks, but it's bad for Disney's merchandising. (I don't think they sell a single thing that isn't made in China.)

[Larry]

It is bad for most consumers (who overwhelmingly buy imported goods), US travellers abroad, American importers and companies whose primary expenditures are in foreign currencies.

So, it's good for Disney's parks, but it's bad for Disney's merchandising. (I don't think they sell a single thing that isn't made in China.)