Economic consequences of the Great August 2009 US$ collapse?

[feargach]

It seems to have passed most of us by that right now the US dollar is collpasing rather dramatically. It has exploded down through the €0.70 barrier and is making progress towards the €0.68xx level and €0.65 is by no means out of the question.

I know that dole cuts are near to everybody's hearts, and cutting the pay of public workers is a dream that looks tantalisingly close to a reality. But the value of the US dollar relative to the currency Ireland uses is by far a bigger issue, involving much greater amounts of wealth. Might be worth while keeping an eye on it.

[Wakeupcall]

Indeed... the services I have in the US are becoming unbelievably cheap!!

Will be dropping my prices for my Irish customers at the end of the year if it continues.

[toughbutfair]

I was in holiday in America in May/June 2008 and got about $1.60 for my Euro.

Hence, you linking it to the bail out which happened later makes no sense.

[Propforward]

Indeed... the services I have in the US are becoming unbelievably cheap!!

Will be dropping my prices for my Irish customers at the end of the year if it continues.

Pass it on now and you'll assist the economic recovery!!

[Dios]

Yup, thats QE in action. It'll drop further yet, then its hyperinflation time for the US.

[Wakeupcall]

Pass it on now and you'll assist the economic recovery!!

They pay me annually, considering it for next payment

Thanks!

[feargach]

I was in holiday in America in May/June 2008 and got about $1.60 for my Euro.

Hence, you linking it to the bail out which happened later makes no sense.

What have you been smoking?

I didn't link it to anything. I don't pretend to know why big currency moves happen, except, sometimes, several months after the event.

[atlantic]

Yes indeedy,the spin coming from the Bammy team, wallstreet and Bernake is a crock of lies.The US economy is shagged,they have borrowed and spend monies they didn't have,their GDP is 70% Consumption.Nobody is buying,no jobs,stagnated and lower wages,manufacturing as good as dead.China off loading Treasuries ,other countries worry about deficit,lunatic printing money like no tomorrow.

Yup, thats QE in action. It'll drop further yet, then its hyperinflation time for the US.

[Dios]

Yes indeedy,the spin coming from the Bammy team, wallstreet and Bernake is a crock of lies.The US economy is shagged,they have borrowed and spend monies they didn't have,their GDP is 70% Consumption.Nobody is buying,no jobs,stagnated and lower wages,manufacturing as good as dead.China off loading Treasuries ,other countries worry about deficit,lunatic printing money like no tomorrow.

I think the US economy might be alright, its everyone else thats shagged (especially China), since the USD is the global trade currency. Export based manufacturing is where its at, and you can export cheaper than anyone else if your currency is very weak. This might herald the return of manufacturing jobs from abroad to the US, including those in Ireland. Hyperinflation might not be too bad if wage inflation follows, the question is will it.

[toughbutfair]

What have you been smoking?

I didn't link it to anything. I don't pretend to know why big currency moves happen, except, sometimes, several months after the event.

The heading links it to the collapse of their banks and the subsequent bail out. If I am mistaken, apologies, what is the point of thread?

The dollar is a similar level to a year ago before all this bank stuff hit the fan.