DOW down over 800 points as world markets fall.

Discussion in 'Economics & Trade' started by 61falcon, Aug 5, 2019.

  1. s002wjh

    s002wjh Well-Known Member

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    lol they do that for over 20years in 90s, and early 2000s. devaluing mean business will go there more cause its cheaper. its just mean import is more expensive for them, but they already making everything from toys to tv etc. as for things china need to import they are using dollars to purchase it. It also mean ppl will buy more local stuff compare to import stuff. This work well for export type economy.
     
  2. Mac-7

    Mac-7 Banned

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    There are many short-sighted globalists in the western democracies who worship at the alter of Cheap
     
  3. ronv

    ronv Well-Known Member

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    Exporters are paid by their trading partners in U.S. dollars, euros, or other currencies. The exporters exchange them for the local currency. They use it to pay their workers and local suppliers.
    https://www.thebalance.com/foreign-exchange-reserves-3306258

    No, it does not accumulate them more dollars. It gives them more yuan if they sell for the same price. They may choose to lower the price to become more competitive. But the choice is theirs.

    If you have a link that proves otherwise - post it.
     
  4. flyboy56

    flyboy56 Well-Known Member Past Donor

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  5. Thedimon

    Thedimon Well-Known Member

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    You are arguing against common knowledge:

    https://www.investopedia.com/terms/d/devaluation.asp

    Common knowledge vs your absurd claim that China devaluing its currency does not result in lower cost exports, which nullifies tariffs.
    A drop in currency results in lower prices in USD. End of story.
     
  6. truth and justice

    truth and justice Well-Known Member

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    Your post has nothing to do with the fact that foreign contracts are priced in dollars. Many contracts even include clauses allowing currency futures trading
     
    Last edited: Aug 19, 2019
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  7. Thedimon

    Thedimon Well-Known Member

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    Actually, you are wrong.
    If contracts were priced in USDs then the currency drop would have no affect on anything. My article states common knowledge - currency drop results in lower import prices. That can only happen is contracts are priced in local currency.

    There are very few exceptions to local currency payments - Russians will never price their natural gas in rubles (they don’t trust their own crappy currency), and countries like Venezuela where inflation is so bad, it’s impossible to operate using native currency.
     
  8. ronv

    ronv Well-Known Member

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    Lowering prices is one of their options, but not the only option.

    I'm going to yield this conversation to @truth and justice. Maybe if you hear from someone else about how it works it will sink in. :)

    https://www.thebalance.com/world-currency-3305931
     

    Attached Files:

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  9. truth and justice

    truth and justice Well-Known Member

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    Your attachment illustrates the point perfectly and shows why the US Dollar is referred to as the global currency.
     
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  10. Pro_Line_FL

    Pro_Line_FL Well-Known Member Past Donor

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    Another 500 point cash thanks to Trumps comments.
     
  11. Renee

    Renee Well-Known Member

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    Did you give Obama credit for anything nearly tripled the market?
     
  12. Pro_Line_FL

    Pro_Line_FL Well-Known Member Past Donor

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    It was 20K when he took office, but the problem is that is has made zero gains in the last 19 months, which is worse than bad.
     
  13. 61falcon

    61falcon Well-Known Member

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    The VAST majority of the stock market gains are due to companies buying back their own stock!!!!Not investors buying shares!!!
     
  14. Thedimon

    Thedimon Well-Known Member

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    Care to back that up?
     
  15. HereWeGoAgain

    HereWeGoAgain Banned

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    That is whats he inherited from Bush. Either you know this, which is disturbing because you choose to ignore it, or you don't know it, which is even more disturbing because it shows zero knowledge of the facts, but plenty of opinions. Which is it?
     
    Last edited: Aug 23, 2019
  16. HereWeGoAgain

    HereWeGoAgain Banned

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    Getting rid of trump is more important than the economy. That is true patriotism at work. It shows a dedication to principles even if there is a personal cost.
     
  17. therooster

    therooster Banned

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    Principles... ok thats too much for me .. i need a break from here. Nonstop ridiculousness... like opposite world ..
     
  18. Mac-7

    Mac-7 Banned

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    Dont expect anyone on the American left to show any common sense

    They were eaten up by Trump Derangement Syndrome long ago and never recovered

    In the long run china has the most to lose by fair trade

    But in the short run America will feel the pain first

    and that gives the commie dictatorship a big advantage
     

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