USD to BRL

[TheJake]

Ok wtf happened! When did the brasil suddenly gain a better economy!?!?!

Or is it just that the USD is dropping globably??

All I know is that the hammocks I was going to order for 37 dollars a piece are now 57 dollars a piece and this does not excite me!

[space virgin]

Were they banana hammocks, by any chance?

On second thought, never mind. I don't want to know.

[thatgirlwholaughs]

the economy in brazil has been steadily growing since the late 1980s. they have a shiteload of foreign investment (you hammock shoppers included), a government that supports international involvement, a very convenient Fiscal Responsibility Law(something the US really needed pre-Bush), and the fact that Brazil's exports have nearly doubled in the past decade is huge. Brazil is also one of the world's leading produccers of hydroelectric power...

what can i say, i'm an economics major...

[Esterina]

yes, and the US dollar is loosing ground at the same time. For instance, CAN dollar is now of $0,90, when it was three years ago at $0,62 ! Jake, you now know how it feels to be a non-american wanting to travel...

[omisan]

Sepultura's on tour. That'll double Brazil's GNP for about 3 months

[TheJake]

That must be what it is omid... Seputulra....

Well i can still make a profit, just not as much and the investment capital is of course higher.... *sigh*

you know what i always say...

[foofiter]

It is true. Last check (a couple days ago) I get R$2.30 for each USD. The weak dollar policy is why. It also happend with the Euro, Pound, CAN$, Yen, and most others too.

I have considered changing a lot of my savings to Euros so I dont lose any more...

Foo

[LiveFreeorDie]

The dollar has dropped steadily for the last two years and just recently had a bigger dip. Remember though, that while there are negatives, such as reduced purchasing power while abroad for Americans, a weak dollar actually can improve the U.S.'s competitiveness in the global market place. Basically, goods made in the U.S. have become a lot cheaper, this keeps jobs in the states and slows the outsourcing trend. It also makes the U.S. a cheaper destination from a tourism perspective. While a few years ago, tourists from Canada had greatly diminshed due to the strong U.S. dollar, now that the exchange rate is at 90, Canadians have much more purchasing power and a vacation to the states is much cheaper. There are always trade-offs, but a weak dollar is not strictly a bad thing.

[TheJake]

Well if i was in the tourism business that would help... I am not however! I am in the import business and it's not good for business!

[voyd]

Why do you think the US is threatening Ir@n now? Is it really because of their nukes...or because they recently threatened to sell their oil in EUROS, not USD anymore?

Since our currency is no longer backed by a metal standard, now. In other words, our currency's value is determined in one large part by how much oil (an inherently valuable universal commodity) we can purchase with it.

But, if Arabs no longer sell their oil in USD, but Euros, then we lose that direct standard. And if it's not pegged to something concretely valuable - our currency could then devalue even more and eventually face a catastrophic devaluement (inflation) when people decide it is essentially worthless since it is backed by nothing but debt...

Hence, many of our wars have actually been fought over our currency - even as far back as the Boston Tea Party (when Britain imposed a metal standard on us). Most recently, Ir@q also switched from the USD to the EURO in selling their oil...and we all know what happened after that...

[Joker]

Originally posted by voyd@May 10 2006, 09:17 PM
Since our currency is no longer backed by a metal standard,

Voyd, you realize that we have not had a gold standard to back us since the turn of the 19th century and its been nearly 40 years since anyone could redeem the $20 bill in their wallet for an equal amount of gold. Furthermore, the major economies of the world have gotten away from a gold-redeemable or silver-redeemable note simply because if in the case that a run on the bank due to an economic downturn were to occur, it could theoretically bankrupt the country. To this, there are gold reserves, yes, but you and I have no access to them except through private party brokers.

The Euro is even worse off, since from its inception, it sought to equalize the net worth of multiple currencies and economies. The initial spurt in growth it has seen has only been short term. In fact, its been in decline since its high, and continues to equalize with the dollar.

But, if Arabs no longer sell their oil in USD, but Euros, then we lose that direct standard.* And if it's not pegged to something concretely valuable - our currency could then devalue even more and eventually face a catastrophic devaluement (inflation) when people decide it is essentially worthless since it is backed by nothing but debt...

Dollars are still the most valuable currency, regardless of the location. For the Arab countries and Iran to move to the Euro as their standard would be a massive blunder based solely on the sheer economic fallacy that it is. Again the Euro is not as strong as one would think. I'm not saying the dollar is the end all-be all, but in terms of stable currencies, it has a far better track record.

Beyond that, one of the chief reasons for the devaluation of the dollar to the euro is because the Federal Reserve continually lowered interest rates. Interest rates are more than your mortgage, car payment, or credit card bills. They directly affect the return paid upon the bonds sold by the country to support itself (IE, foreign investment.) By lowering interest rates, the currency devalues. Now that interest rates are slowly beginning to creep up, the Euro is losing ground. Current Dollar/Euro is $1.27 each.

Hence, many of our wars have actually been fought over our currency - even as far back as the Boston Tea Party (when Britain imposed a metal standard on us).* Most recently, Ir@q also switched from the USD to the EURO in selling their oil...and we all know what happened after that...

[snapback]119832[/snapback]

You are aware that the primary reason for the Boston Tea Party was to protest both the Stamp Act and the Tea Taxations that the British Crown had levied against the colonies? The Brits had long maintained a metal standard, and common currency in the colonies was a metal standard...

Furthermore, if OPEC oil was pegged to the Euro instead of the dollar, the rapid fluctuations of price per barrel would affect the Eurozone worse than the US, since it is their home currency.

//economics major, and I worked for the Federal Reserve immediately prior to the start of the Euro as currency.

[kn34]

nice info joker

[xanthuos]

Opinions are like assholes.

Everyone's one got.