Is a weak dollar a good thing?
Jun 1st 2004, 3:31 pm
#1
Bitter and twisted
Thread Starter
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Is a weak dollar a good thing?
Everyone seems excited because the dollar is weakening.
Is this really a good thing?
Apart from a one-off benefit when you move sterling then what happens?
Unless you have a lot of money to move or are still being paid in Sterling then is it the best for the long run?
If you want to buy imports they will be more expensive.
If you want to travel it will cost more.
If you want to return to the UK it will be more difficult.
There can be many problems with a weak currency.
I am no economist but what do the experts theink?
G
Is this really a good thing?
Apart from a one-off benefit when you move sterling then what happens?
Unless you have a lot of money to move or are still being paid in Sterling then is it the best for the long run?
If you want to buy imports they will be more expensive.
If you want to travel it will cost more.
If you want to return to the UK it will be more difficult.
There can be many problems with a weak currency.
I am no economist but what do the experts theink?
G
Jun 1st 2004, 3:35 pm
#2
Forum Regular
Joined: May 2003
Posts: 240
Re: Is a weak dollar a good thing?
Originally posted by Grayling
Everyone seems excited because the dollar is weakening.
Is this really a good thing?
Apart from a one-off benefit when you move sterling then what happens?
Unless you have a lot of money to move or are still being paid in Sterling then is it the best for the long run?
If you want to buy imports they will be more expensive.
If you want to travel it will cost more.
If you want to return to the UK it will be more difficult.
There can be many problems with a weak currency.
I am no economist but what do the experts theink?
G
Everyone seems excited because the dollar is weakening.
Is this really a good thing?
Apart from a one-off benefit when you move sterling then what happens?
Unless you have a lot of money to move or are still being paid in Sterling then is it the best for the long run?
If you want to buy imports they will be more expensive.
If you want to travel it will cost more.
If you want to return to the UK it will be more difficult.
There can be many problems with a weak currency.
I am no economist but what do the experts theink?
G
Jun 1st 2004, 3:50 pm
#3
BE Forum Addict
Joined: Oct 2003
Location: Coogee, Sydney
Posts: 1,017
Re: Is a weak dollar a good thing?
Originally posted by Grayling
Everyone seems excited because the dollar is weakening.
Is this really a good thing?
Apart from a one-off benefit when you move sterling then what happens?
Unless you have a lot of money to move or are still being paid in Sterling then is it the best for the long run?
If you want to buy imports they will be more expensive.
If you want to travel it will cost more.
If you want to return to the UK it will be more difficult.
There can be many problems with a weak currency.
I am no economist but what do the experts theink?
G
Everyone seems excited because the dollar is weakening.
Is this really a good thing?
Apart from a one-off benefit when you move sterling then what happens?
Unless you have a lot of money to move or are still being paid in Sterling then is it the best for the long run?
If you want to buy imports they will be more expensive.
If you want to travel it will cost more.
If you want to return to the UK it will be more difficult.
There can be many problems with a weak currency.
I am no economist but what do the experts theink?
G
All true but if you have the equity from a house to take over, the extra that can be gained from a significant weakening in the exchange rate would surely take a long time to mirror from the downside of the points you raised.
Unless of course it underlies a weakening economy, possible job losses and lots of unemployed expats - but lets try not to focus too much on that one !
Jun 1st 2004, 3:55 pm
#4
Bitter and twisted
Thread Starter
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: Is a weak dollar a good thing?
Originally posted by sjn2003
All true but if you have the equity from a house to take over, the extra that can be gained from a significant weakening in the exchange rate would surely take a long time to mirror from the downside of the points you raised.
Unless of course it underlies a weakening economy, possible job losses and lots of unemployed expats - but lets try not to focus too much on that one !
All true but if you have the equity from a house to take over, the extra that can be gained from a significant weakening in the exchange rate would surely take a long time to mirror from the downside of the points you raised.
Unless of course it underlies a weakening economy, possible job losses and lots of unemployed expats - but lets try not to focus too much on that one !
It is fine for me as I have a lot of money to transfer and the bulk of my income will still be paid in Sterling ad infinitum.
However for most, especially those with relatively little equity, how long will it be a good thing before the problems of a weak dollar are felt?
What we all REALLY want is for the dollar to weaken when we move OUR money but then strengthen again!
G
Jun 1st 2004, 5:54 pm
#5
58.38264% - Extreme Geek
Joined: Jan 2004
Location: The Place To Be
Posts: 2,270
Re: Is a weak dollar a good thing?
Originally posted by Grayling
....
What we all REALLY want is for the dollar to weaken when we move OUR money but then strengthen again!
G
....
What we all REALLY want is for the dollar to weaken when we move OUR money but then strengthen again!
G
Seems there's loads of Expats about to move zillions of $$$$ across to Oz. What we should do is co-ordinate the currency moves to *exactly* the same time. With all that cash moving one way it'd be bound to have some effect on trading. Would love to watch those forex traders sh*tting their Armani suits as the global $:£ rate wobbles about all over the place - on one ginormous trade!
(Yeah, I know many forex traders are nice family men who are kind to small children & animals. However IME too many of them are the kind of low life who choose 17:00 on a Friday to find some critical, urgent and impossible-to-diagnose IT problem. Just wanna get my own back
).Anya.
Jun 1st 2004, 7:28 pm
#6
What's happening dudes?
Joined: Mar 2004
Location: Bayside Brisbane
Posts: 20,647
Re: Is a weak dollar a good thing?
Originally posted by anya4oz
Seems there's loads of Expats about to move zillions of $$$$ across to Oz. What we should do is co-ordinate the currency moves to *exactly* the same time. With all that cash moving one way it'd be bound to have some effect on trading. Would love to watch those forex traders sh*tting their Armani suits as the global $:£ rate wobbles about all over the place - on one ginormous trade!
Seems there's loads of Expats about to move zillions of $$$$ across to Oz. What we should do is co-ordinate the currency moves to *exactly* the same time. With all that cash moving one way it'd be bound to have some effect on trading. Would love to watch those forex traders sh*tting their Armani suits as the global $:£ rate wobbles about all over the place - on one ginormous trade!
Jun 1st 2004, 11:15 pm
#7
da Bonehead
Joined: Jan 2004
Location: Lion in da jungle
Posts: 22,767
Re: Is a weak dollar a good thing?
I think the only real concern to expats is if it did lead to an unstable economy resulting in job losses; but of course that is equally the case in UK when the recessionary cycle turns.
Once in OZ it will be dollar wages paying dollar costs and this will be similar to living in UK earning pounds to pay pound costs.
Those with sizeable equity will benefit on the one time movement of funds at a good x-rate.
Those with smallish equity will be in no worse financial position than when they were in UK but will have changed their habitat to the one they desired. They hopefully already realise they will not be buying imports or be able to travel any more than they could when in UK.
Where this could go belly-up of course is when OZ fails to meet their expectations........ but there is no way of knowing that until it is tasted - is there ?
I think exchange rates are very much like share prices. The value of companies hit peeks and troffs but generally it does not affect the workers within the company. Likewise if you are living in a country and only using that currency the x-rate does not affect you too much.
Yes, these are generalisations but I hope you get my drift.
Once in OZ it will be dollar wages paying dollar costs and this will be similar to living in UK earning pounds to pay pound costs.
Those with sizeable equity will benefit on the one time movement of funds at a good x-rate.
Those with smallish equity will be in no worse financial position than when they were in UK but will have changed their habitat to the one they desired. They hopefully already realise they will not be buying imports or be able to travel any more than they could when in UK.
Where this could go belly-up of course is when OZ fails to meet their expectations........ but there is no way of knowing that until it is tasted - is there ?
I think exchange rates are very much like share prices. The value of companies hit peeks and troffs but generally it does not affect the workers within the company. Likewise if you are living in a country and only using that currency the x-rate does not affect you too much.
Yes, these are generalisations but I hope you get my drift.
Jun 1st 2004, 11:28 pm
#8
Not here
Joined: Jan 2003
Posts: 1,621
Re: Is a weak dollar a good thing?
Originally posted by Bix
I think the only real concern to expats is if it did lead to an unstable economy resulting in job losses; but of course that is equally the case in UK when the recessionary cycle turns.
I think the only real concern to expats is if it did lead to an unstable economy resulting in job losses; but of course that is equally the case in UK when the recessionary cycle turns.
Jun 1st 2004, 11:30 pm
#9
Not here
Joined: Jan 2003
Posts: 1,621
Australia keeps digging...more for less?
Jun 2nd 2004, 1:16 am
#10
Not here
Joined: Jan 2003
Posts: 1,621
Fundamentals of the economy will set the scene for a country's future in the globulized economy but what are the basics of forex.
Will there be a drought?
Will that effect wheat prices?
What of demand for coal?
When, what, how?
All guesses!
Speculation!
Gambling?
Then they use the term "technical trading". What a load of crap. They draw a few lines on graphs of random data (claiming that it is not random but predictable) and make speculative decisions based on their "technical analysis".
So what is the deal with ForEx? XXXX of course.
Too much forex?
It is contrived, it is speculative, when someone loses, someone wins. Good luck...now give me 10 eachway on number 6 in the 5th.
Will there be a drought?
Will that effect wheat prices?
What of demand for coal?
When, what, how?
All guesses!
Speculation!
Gambling?
Then they use the term "technical trading". What a load of crap. They draw a few lines on graphs of random data (claiming that it is not random but predictable) and make speculative decisions based on their "technical analysis".
So what is the deal with ForEx? XXXX of course.
Too much forex?
It is contrived, it is speculative, when someone loses, someone wins. Good luck...now give me 10 eachway on number 6 in the 5th.
