[SE3P_to_E90]

God bless America...
(By no means am I trying to sound anti-patriotic... I'm indeed grateful for the US' standard of living... etc etc)
But damnit... Due to the continued depreciation of the US$ relative to the Euro, it is now more expensive [for us Americans] to buy (and trust me, those crafty europeans already adjusted their prices offered to us) parts from Europe... ugh...

The steering wheel that I wanted to purchase was originally $900 shipped... now, it's $950... damnit damnit damnit...

[Max_!]

You know who's to blame.

[spacedogg]

Originally Posted by SE3P_to_E90

God bless America...
(By no means am I trying to sound anti-patriotic... I'm indeed grateful for the US' standard of living... etc etc)
But damnit... Due to the continued depreciation of the US$ relative to the Euro, it is now more expensive [for us Americans] to buy (and trust me, those crafty europeans already adjusted their prices offered to us) parts from Europe... ugh...

The steering wheel that I wanted to purchase was originally $900 shipped... now, it's $950... damnit damnit damnit...

Yeah...but you should see what the Europeans have to pay for a BMW...

North America has it pretty good (except Mexico). US has probably the cheapest BMW rates in the world...and Canada is almost or near second.

[Kiemyster]

Originally Posted by Max_!

You know who's to blame.

:laug habov

[SE3P_to_E90]

[ehhhwik]

woohoo, thats why i am going to Hawaii in a few weeks to go spend my Canadian Dollars there, which is worth more than 90cents USD now!

i think some of the reasons behind is the huge trade deficit that the US is currently carrying and also the Iraq war, both which requires the US to print more of its own currency, there for depreciating it at the same time to pay those things off

[SE3P_to_E90]

Originally Posted by ehhhwik

woohoo, thats why i am going to Hawaii in a few weeks to go spend my Canadian Dollars there, which is worth more than 90cents USD now!

i think some of the reasons behind is the huge trade deficit that the US is currently carrying and also the Iraq war, both which requires the US to print more of its own currency, there for depreciating it at the same time to pay those things off

In macroeconomic terms,
The increase in the money suppy, or shift in the aggregate real money supply, increases the real US money balances... this triggers the increase in the US price level.
The increase in money supply then shifts the US dollar return (relative to the canadian dollar) schedule to the left -- causing dollar interest rates to fall. The shift in the USD return schedule then intersects expected-return-on-Candandian-Dollar" schedule at a higher point -- thus appreciating the exchange rate (USD/CanD)... as well as the decreased dollar interest rate.
The high price level and low dollar interest rate reduces the opportunity cost of holding money, hence reducing the preference to hold US interst bearing assets...

In the Long-Run (long story short), the increased price level begins to fall toward its natural rate -- since prices are flexible in the LR -- causing the dollar interest rate to rise. the increase in the USD interest rate pushes the dollar return schedule to creep back to its initial position (shift right)...

what i'm trying to say is... is, the USD will (eventually) appreciate relative to the Canadian dollar... if Bush doesn't F it up by continuously increasing government expenditures, we'll be ok

[533ogetnom]

i wish someone shot him a long time ago, i meen normally if the president was assasinated the stock market wold porbably take a small tumble, i think it would go up

[SE3P_to_E90]

Originally Posted by 533ogetnom

i wish someone shot him a long time ago, i meen normally if the president was assasinated the stock market wold porbably take a small tumble, i think it would go up

up... perhaps not -- b/c assasinations are frowned upon...
but, we will have stability my friend... stability

[Scarabeo]

Originally Posted by SE3P_to_E90

God bless America...
(By no means am I trying to sound anti-patriotic... I'm indeed grateful for the US' standard of living... etc etc)
But damnit... Due to the continued depreciation of the US$ relative to the Euro, it is now more expensive [for us Americans] to buy (and trust me, those crafty europeans already adjusted their prices offered to us) parts from Europe... ugh...

The steering wheel that I wanted to purchase was originally $900 shipped... now, it's $950... damnit damnit damnit...

Tell me about it - I live in in Europe and can no longer afford to eat out with my family...unless I want to spend about 300 USD. Our flat in Milan is over 5,000 USD a month...and gas is 1.3 euros a liter...

[Scarabeo]

Originally Posted by SE3P_to_E90

In macroeconomic terms,
The increase in the money suppy, or shift in the aggregate real money supply, increases the real US money balances... this triggers the increase in the US price level.
The increase in money supply then shifts the US dollar return (relative to the canadian dollar) schedule to the left -- causing dollar interest rates to fall. The shift in the USD return schedule then intersects expected-return-on-Candandian-Dollar" schedule at a higher point -- thus appreciating the exchange rate (USD/CanD)... as well as the decreased dollar interest rate.
The high price level and low dollar interest rate reduces the opportunity cost of holding money, hence reducing the preference to hold US interst bearing assets...

In the Long-Run (long story short), the increased price level begins to fall toward its natural rate -- since prices are flexible in the LR -- causing the dollar interest rate to rise. the increase in the USD interest rate pushes the dollar return schedule to creep back to its initial position (shift right)...

what i'm trying to say is... is, the USD will (eventually) appreciate relative to the Canadian dollar... if Bush doesn't F it up by continuously increasing government expenditures, we'll be ok

You forgot to throw in "Relative Purchasing Power Parity", short term interest rates - and the kitchen sink...

[krazykanuck]

Originally Posted by SE3P_to_E90

In macroeconomic terms,
The increase in the money suppy, or shift in the aggregate real money supply, increases the real US money balances... this triggers the increase in the US price level.
The increase in money supply then shifts the US dollar return (relative to the canadian dollar) schedule to the left -- causing dollar interest rates to fall. The shift in the USD return schedule then intersects expected-return-on-Candandian-Dollar" schedule at a higher point -- thus appreciating the exchange rate (USD/CanD)... as well as the decreased dollar interest rate.
The high price level and low dollar interest rate reduces the opportunity cost of holding money, hence reducing the preference to hold US interst bearing assets...

In the Long-Run (long story short), the increased price level begins to fall toward its natural rate -- since prices are flexible in the LR -- causing t he dollar interest rate to rise. the increase in the USD interest rate pushes the dollar return schedule to creep back to its initial position (shift right)...

what i'm trying to say is... is, the USD will (eventually) appreciate relative to the Canadian dollar... if Bush doesn't F it up by continuously increasing government expenditures, we'll be ok

Did you just take Intro or principles of macro?

[SE3P_to_E90]

Originally Posted by krazykanuck

Did you just take Intro or principles of macro?

just took the macroeconomics theory... testing my retention skills... and indeed i did forget to give credence to Relative PPP.
the kitchen sink... not so sure about!

as for just taking Macrotheory --

[SE3P_to_E90]

Originally Posted by Scarabeo

Tell me about it - I live in in Europe and can no longer afford to eat out with my family...unless I want to spend about 300 USD. Our flat in Milan is over 5,000 USD a month...and gas is 1.3 euros a liter...

maybe the 5000usd a month is killing you... post some picture of that badboy penthouse!!

[uhaulball]

this is why i changed majors.

[Max_!]

> afford to eat out with my family...unless I want to spend about 300 USD.

All 23 brothers and sisters still live with you?

> Our flat in Milan is over 5,000 USD a month

Yeah, a flat with room for 23 people would be that expensive.

[Corey]

Is the steering wheel plated in gold?

[SE3P_to_E90]

Originally Posted by Corey

Is the steering wheel plated in gold?

mtech w/ all covers/buttons and airbag...

[Scarabeo]

:

Originally Posted by Max_!

> afford to eat out with my family...unless I want to spend about 300 USD.

All 23 brothers and sisters still live with you?

5 people x 50 euros = 250 euros or about 300..this is an upper end restaurant.

> Our flat in Milan is over 5,000 USD a month

Yeah, a flat with room for 23 people would be that expensive.

Wrong - we live in Brera and this is one of the cheaper flats....Btw Max, if you live in Europe you should know how expensive it is here...Oh, I forgot to mention that the company pays my rent:rocks:

[DFW_M]

Originally Posted by Scarabeo

:

Wrong - we live in Brera and this is one of the cheaper flats....Btw Max, if you live in Europe you should know how expensive it is here...Oh, I forgot to mention that the company pays my rent:rocks:

Of course Europe is more expensive, but that much...no way. It is heavily exaggerated. And FYI, I took my wife out in Dallas restaurant (Dallas is one of the cheapest cities in the USA) and we spent $380 for the two of us...so...

As for the apartment -- I doubt you can find a "flat" in Manhattan, or downtown Chicago or SFO for much cheaper... So, lets compare apples to apples...

[ehhhwik]

Originally Posted by SE3P_to_E90

In macroeconomic terms,
The increase in the money suppy, or shift in the aggregate real money supply, increases the real US money balances... this triggers the increase in the US price level.
The increase in money supply then shifts the US dollar return (relative to the canadian dollar) schedule to the left -- causing dollar interest rates to fall. The shift in the USD return schedule then intersects expected-return-on-Candandian-Dollar" schedule at a higher point -- thus appreciating the exchange rate (USD/CanD)... as well as the decreased dollar interest rate.
The high price level and low dollar interest rate reduces the opportunity cost of holding money, hence reducing the preference to hold US interst bearing assets...

In the Long-Run (long story short), the increased price level begins to fall toward its natural rate -- since prices are flexible in the LR -- causing the dollar interest rate to rise. the increase in the USD interest rate pushes the dollar return schedule to creep back to its initial position (shift right)...

what i'm trying to say is... is, the USD will (eventually) appreciate relative to the Canadian dollar... if Bush doesn't F it up by continuously increasing government expenditures, we'll be ok

looks like you did your homework buddy, i am Double Major Psychology + Econ...

I am sure the US dollar will go back in up value in the LR, theres always been a baseline for the currency to which it is more stable, i guess you could blame Bush's fiscal policies in that regard with all the excessive spending in Iraq (i find it funny and sad at the same time how Bush wants to spend billions to rebuild Iraq but still hasn't finished rebuilding New Orleans), A'stan, trade deficits, national debt, etc...

one more thing i have to add, because the USD is decpreciating, it causes other currencies that is pegged to it to deprecieate as well (ex. Hong Kong Dollar, Malaysian Rigget) just to name a few, this is one reason why the depreciated USD can affect world wide currencies values

fyi, China's national reserve is well over $1 TRILLION USD now, and most of it is American currency...

[SE3P_to_E90]

Originally Posted by ehhhwik

looks like you did your homework buddy, i am Double Major Psychology + Econ...

I am sure the US dollar will go back in up value in the LR, theres always been a baseline for the currency to which it is more stable, i guess you could blame Bush's fiscal policies in that regard with all the excessive spending in Iraq (i find it funny and sad at the same time how Bush wants to spend billions to rebuild Iraq but still hasn't finished rebuilding New Orleans), A'stan, trade deficits, national debt, etc...

one more thing i have to add, because the USD is decpreciating, it causes other currencies that is pegged to it to deprecieate as well (ex. Hong Kong Dollar, Malaysian Rigget) just to name a few, this is one reason why the depreciated USD can affect world wide currencies values

fyi, China's national reserve is well over $1 TRILLION USD now, and most of it is American currency...

That's very true... this is a great example of the Trilemma!

You can't be pegged to the dollar and expect to have full monetary independence... you can't expect exchange rate stability if your currency is allowed to float freely. and lastly, you can't have full capital controls if you're in an economy that has absolute free flows of capital and full financial integration...

The depreciation of the HKD and the Malasian Rigget is a mixed blessing... it sucks for the obvious reasons... but it's also good (for us ) because they smoothen out the shock to our economy. Without them, we'd be in a much deeper craphole.