There's nothing wrong with a "weak" dollar.

My opinions of Britain leaving the Pound sterling for the Euro are well documented. I see no reason to revisit the well.
 
would be good to have a global currency for international trade. I know they usually use the US dollar for that, but maybe one that is not linked to any one country, so it is more stable.
 
paul_valaru said:
What you need is a Global economy with one standardized currency
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Here's my problem with that, Paul. A global economy means that those of us who currently enjoy a significantly higher standard of living than, oh, say a typical third world dweller will have our standard of living decrease dramatically over time in such a scenario. I don't like that one bit.
 
Professur said:
Jim, you're not that simple. Think it through. With the US greenback at €1.45, oil is trading at over $90 a barrel. That's heat, that's transport, that's food, right there. Why is oil over $90? Because the greenback buying it is worthless. Similarly, everyone's bleeting about the price of gold ans silver rising to record levels. No they aren't. It's the buck that's buying them dropping against then. Look at how gold has moved against the euro, and it's a whole different picture.

The answer to employment issues isn't to drop the dollar to the point where it's economical to keep the work here. Are you really insane enough to think that we'll ever approach the level of production per dollar that korea and india can? The answer to the problem is .... to keep the jobs here regardless. If every american stopped buying anything not produced in the US, their cost of living would skyrocket, but so would their paycheques, and the employment numbers. I worked for a sort time at Leviton. You might know that name. They make electrical products, like extension cords and light switches. They had a production facility here in Montreal. Shortly after I started (I was temp) they closed the facility to move production to Mexico. Why? Because Noma, their biggest competitor, already had, and they had no choice if they wanted to stay in business. But oddly enough... I never did notice the price of extension cords dropping to match.

That, my friend, is the problem and solution. Encourage, force, or railroad your suppliers using your buying power ... to keep your buying power within your borders.

Do you really think that many chinese buy other than chinese manufacture?
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Try some of these:

http://faculty.london.edu/rportes/research/PortesReyEP.pdf

The Europeans are scared to death that the Euro will become king. They acknowledge that the Euro is overvalued against the dollar and yen:

http://www.iht.com/articles/2007/07/29/business/bxatm.php

http://www.iht.com/articles/2007/07/11/technology/econ.php

They are investigating ways to change the exchange rate to be more "fair":

http://edition.cnn.com/2007/BUSINESS/10/03/exchange.rate.ap/index.html

Nicolas Sarkozy is leading this movement because he sees the writing on the wall:

http://imf.org/External/spring/2004/imfc/statem/eng/frae.pdf

Not everyone is on board with Sarkozy's plan, though:

http://www.theaustralian.news.com.au/story/0,25197,22513572-36375,00.html

http://www.iht.com/articles/2007/07/29/business/bxatm.php

http://www.forbes.com/markets/feeds/afx/2007/07/12/afx3906159.html
 
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