Say Anything Blog

When Spain elected a socialist the Euro spanked us and it gained again when Burlesconi got the boot for the Italian leftist. Not inflation, good ole US dollar pounding value.

Since Bush has been in power… eh.... the dollar has ehh..... and what were you saying about inflation?

Show me the numbers, sparkle. Basic commodities are not inflating in the US. In Europe they are steadily climbing. A government minister telling people that prices will be such&such always drives inflation. Go to your local grocery store and buy a weeks worth of groceries. Then go to any country in Europe and buy the same. Then try to convince yourself that America is in collapse and our economy is hyper-inflationary. I am sure you can do it, your a monron.

Una Salus Victus Nullam Sperare Salutem

Many people think that it’s a good thing for the dollar to be high.  I don’t see it.  What’s important is for it to float to even out the balance of trade (including all commerce.)

When the dollar is high that means imports are cheaper when it’s low imports are more expensive.  When the dollar’s allowed to float that means imports are just right.

What’s going to happen to US industry when the global warming extremists like John McCain double the price of electricity?  I would think all these factories will close and set up in countries where they aren’t scared of technology.

Reading through the entire article, it seems pretty clear that the author, AP reporter Pearson, has no idea what inflation is, what caused it, or what to do about it.  The grocery store clerk, on the other hand, appears to understand all too well what is happening in his country and why.

Sparkie,

While inflation will certainly cause a country’s currency to weaken and fall on world currency markets as the currency becomes less valuable and demand for it diminishes, it is not true that a “weak” currency always means inflation is at work.  There are many reasons why a currency could “weaken” including a deliberate attempt to encourage more trade in a country’s goods and services by overseas buyers, for example.

The relative “strength” of the Euro is much more a reflection of interest rate differentials and a deliberate attempt by Washington to encourage US exports than it is an indictment of US fiscal policy or an indicator of coming US inflation.

2H9 is correct.  Check the numbers.

“Poverty of goods is easily cured; poverty of the mind is irreparable.”

Don’t thank me, Bravo1, thank Thomas Sowell, Walter"Black by popular demand” Williams, AND Milt Freidman.

I would suggest sparkle educate himself by watching Free To Choose, but I doubt he has the attention span to sit through an hour long program once a day. Here is the link, spark. Expand your understanding of economics. And dig those crazy lapels and that natural T Sowell is sporting!

Una Salus Victus Nullam Sperare Salutem

I find it amusing that every bad/unfavorable thing that happens in Venezuela Chavez blames on someone else.

I’m actually surprised he doesn’t blame Bush/America for their market woes.

Fileitunder.com

He already has! In his inaugural address, in the press interveiws during President Tom’s visit, during his state visit to Cuba, during his state visit to Russia, etc etc etc.

Una Salus Victus Nullam Sperare Salutem

2H9 is correct.

Ha. The soc in Spain came in and so did Bush here. If you bought euros at that point you would have made 40-50% at this point. A huge return. It was a 30% return within a year. The numbers are there gentlemen. 2h9’s little grocery store thought exercise is cute, but there are higher taxes on everything in Europe so the camparason is null. Just like shopping in Wyoming and Manhattan.

What does how much money made converting euros to dollars and vice versa have to do with anything?  That’s an absolute total and complete strawman argument.  It has absolutely nothing to do with whether socialism distributes resources better or worse than capitalism.  That’s what the discussion actually is about.

"Although I can accept talking scarecrows, lions and great wizards in emerald cities, I find it hard to believe there is no paperwork involved when your house lands on a witch.”
- Dave James

Sparkie,

The appreciation of the Euro over the US dollar during the period you cite may well have happened.  I don’t trade foreign currencies, and don’t follow that market.

But you have offered no evidence to support your contention of the causal relationship you’ve suggested.  Where’s the documentation to support the notion that the election of Socialists in Spain or the Bush administration in the US actually caused the Euro to appreciate versus the Dollar?  For all the actual proof you’ve offered in support of your contention, you might just as well have suggested that the death of Princess Diana caused the Euro to appreciate.

When you can offer something more definitive in the way of evidence to support your claim of a relationship get back to me.

In the meantime, please bear in mind that saying the earth is flat don’t make it so.

“Poverty of goods is easily cured; poverty of the mind is irreparable.”

r108 cites inflation and a dependancy on the black market.

the euro routing us in the period i have described is directly linked to economic policy. you can deny it all you want. have fun. the euro gained real, non-inflationary value while US inflation rose in that period.

furthermore, a country like the US, where the debt circles and circles and the average person has more than a few grand out on their CC, is much more reliant (in fact it needs) the liquidity on a world scale that black market trade provides. without the liquidity things become stagnant and everyone realizes there is significantly less money than people think there is and inflation becomes even more troublesome. the illicit economy is a significant butress to the financial dealings here in the US.

Sparkie: As usual, you demonstrate your profound ignorance of economics.  The US purposely follows a relatively weak dollar policy to encourage other countries to buy from us.  Personally, I’m not in favor of that, but it’s the reality.  That is one factor that makes the Euro seem “stronger” than the dollar.  The other is that the accounting in a command economy(socialism) is dishonest.  Things cost what the govt says they should cost, not what the supply/demand relationship is in the market.  During the Great Depression, the Soviets furnished false economic numbers to the rest of the world that deceived us into thinking that they were doing well.  That lie is one of the factors that saddled us with the “New Deal” and Social Security.  Get help.

Hope and change, in a free world, are the private possessions of motivated individuals.

See, gang? Attempting to engage sparklebaby in any meaningful fashion at all is a complete waste.

Una Salus Victus Nullam Sperare Salutem

In 1958, the GDP/capita of Venezuela was about the same as West Germany. Hasn’t Venezuela done well then to now have GDP/capita about 1/5 of Germany. Apparently due to volatile oil prices and the transition to basically a command economy.

“All the war-propaganda, all the screaming and lies and hatred, comes invariably from people who are not fighting.”
“Every war when it comes, or before it comes, is represented not as a war but as an act of self-defense against a homicidal maniac.” —George Orwell

Another moron incapable of understanding basic economics.

Una Salus Victus Nullam Sperare Salutem

Another moron incapable of understanding basic economics.--2Hotel9

Umm, since you didn’t seem to like my criticism of they way Venezuela’s economy has been handled, are you saying command economies are good?

“All the war-propaganda, all the screaming and lies and hatred, comes invariably from people who are not fighting.”
“Every war when it comes, or before it comes, is represented not as a war but as an act of self-defense against a homicidal maniac.” —George Orwell

...are you saying command economies are good?

They’re good for producing shortages, high costs and stagnation, as well as enslaving citizens.  Other than that, no.

Hope and change, in a free world, are the private possessions of motivated individuals.