As the dollar tanks: your predictions…

[j]

Typically exports benefit when a country’s currency is weak, the current US economy is not typical. Our number one export is financials (stocks and bonds), and as the dollar goes down so does the foreign investor’s investments. Flight to quality used to mean US Treasuries, but if you are a foreign investor US Treasuries are junk. How much is the CANADIAN dollar up on the dollar over the last 6 months, Euro, Yuan, etc. That means US Treasuries have a negative yield. Every Fed cut hurts the US’s number one export. If foreign investor’s cash out, who is going pay for the US consumer’s spending binge, not the US. US savings rate in negative.

[an]

I don’t believe the European cars will get more expensive as the dollar gets weaker. They still have a big competition from the Japanese who will produce better cars everyday. The Infiniti, Lexus, Acura is already at a $5-10k discount compare to similar European. Since the Yen is tracing the dollar pretty closely, their cars will still be just as cheap. If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

Since the Yuan is still pegged to the $, their goods will still be cheap to us and their labor will stay cheap compare to our labor, so I don’t foresee too much manufacturing jobs moving back to the US from China. I agree we probably will see double digit rates to increase the strength of the $ as well. The European Union and Canada probably won’t let the US devalue the $ much longer before they start to do something about it.

[an]

I don’t believe the European cars will get more expensive as the dollar gets weaker. They still have a big competition from the Japanese who will produce better cars everyday. The Infiniti, Lexus, Acura is already at a $5-10k discount compare to similar European. Since the Yen is tracing the dollar pretty closely, their cars will still be just as cheap. If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

Since the Yuan is still pegged to the $, their goods will still be cheap to us and their labor will stay cheap compare to our labor, so I don’t foresee too much manufacturing jobs moving back to the US from China. I agree we probably will see double digit rates to increase the strength of the $ as well. The European Union and Canada probably won’t let the US devalue the $ much longer before they start to do something about it.

[an]

I don’t believe the European cars will get more expensive as the dollar gets weaker. They still have a big competition from the Japanese who will produce better cars everyday. The Infiniti, Lexus, Acura is already at a $5-10k discount compare to similar European. Since the Yen is tracing the dollar pretty closely, their cars will still be just as cheap. If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

Since the Yuan is still pegged to the $, their goods will still be cheap to us and their labor will stay cheap compare to our labor, so I don’t foresee too much manufacturing jobs moving back to the US from China. I agree we probably will see double digit rates to increase the strength of the $ as well. The European Union and Canada probably won’t let the US devalue the $ much longer before they start to do something about it.

[an]

I don’t believe the European cars will get more expensive as the dollar gets weaker. They still have a big competition from the Japanese who will produce better cars everyday. The Infiniti, Lexus, Acura is already at a $5-10k discount compare to similar European. Since the Yen is tracing the dollar pretty closely, their cars will still be just as cheap. If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

Since the Yuan is still pegged to the $, their goods will still be cheap to us and their labor will stay cheap compare to our labor, so I don’t foresee too much manufacturing jobs moving back to the US from China. I agree we probably will see double digit rates to increase the strength of the $ as well. The European Union and Canada probably won’t let the US devalue the $ much longer before they start to do something about it.

[an]

I don’t believe the European cars will get more expensive as the dollar gets weaker. They still have a big competition from the Japanese who will produce better cars everyday. The Infiniti, Lexus, Acura is already at a $5-10k discount compare to similar European. Since the Yen is tracing the dollar pretty closely, their cars will still be just as cheap. If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

Since the Yuan is still pegged to the $, their goods will still be cheap to us and their labor will stay cheap compare to our labor, so I don’t foresee too much manufacturing jobs moving back to the US from China. I agree we probably will see double digit rates to increase the strength of the $ as well. The European Union and Canada probably won’t let the US devalue the $ much longer before they start to do something about it.

[Coronita]

asianautica,

European cars have already gotten more expensive since last year. You just don't realize it first, because what use to be included in the price is no longer. For example, BMW and Mercedes and Audi use to provide free maintanence for 4 years/50k. Mercedes and Audi has dropped this.

The gap in price with the japanese luxury brand is smaller only because the japanese manufacturers raised prices thinking they could command a them. With the exception of Lexus, this is not working. If you look at the latest numbers from Infiniti and Acura for example, sales are drastically down. For example, the Acura MDX which, my is my wife's car, use to b e considerably less than an BMW X5 and Volvo XC90. If you try to price the latest Acura MDX with compariable options, it get's considerably closer to the X5 and XC90. Give any average designer brand label buyer, and given the two choices, I would say fewer people would buy the MDX. That's why MDX sales are down relative to the other makes and brands (ok, it can also because of the weird styling).

 

The Yuan is NOT completely pegged to the $. It has a slight float (albeit still somewhat pegged).

 

If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

 

I wouldn't buy any of the above at any price. 

 

 

[Coronita]

asianautica,

European cars have already gotten more expensive since last year. You just don't realize it first, because what use to be included in the price is no longer. For example, BMW and Mercedes and Audi use to provide free maintanence for 4 years/50k. Mercedes and Audi has dropped this.

The gap in price with the japanese luxury brand is smaller only because the japanese manufacturers raised prices thinking they could command a them. With the exception of Lexus, this is not working. If you look at the latest numbers from Infiniti and Acura for example, sales are drastically down. For example, the Acura MDX which, my is my wife's car, use to b e considerably less than an BMW X5 and Volvo XC90. If you try to price the latest Acura MDX with compariable options, it get's considerably closer to the X5 and XC90. Give any average designer brand label buyer, and given the two choices, I would say fewer people would buy the MDX. That's why MDX sales are down relative to the other makes and brands (ok, it can also because of the weird styling).

 

The Yuan is NOT completely pegged to the $. It has a slight float (albeit still somewhat pegged).

 

If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

 

I wouldn't buy any of the above at any price. 

 

 

[Coronita]

asianautica,

European cars have already gotten more expensive since last year. You just don't realize it first, because what use to be included in the price is no longer. For example, BMW and Mercedes and Audi use to provide free maintanence for 4 years/50k. Mercedes and Audi has dropped this.

The gap in price with the japanese luxury brand is smaller only because the japanese manufacturers raised prices thinking they could command a them. With the exception of Lexus, this is not working. If you look at the latest numbers from Infiniti and Acura for example, sales are drastically down. For example, the Acura MDX which, my is my wife's car, use to b e considerably less than an BMW X5 and Volvo XC90. If you try to price the latest Acura MDX with compariable options, it get's considerably closer to the X5 and XC90. Give any average designer brand label buyer, and given the two choices, I would say fewer people would buy the MDX. That's why MDX sales are down relative to the other makes and brands (ok, it can also because of the weird styling).

 

The Yuan is NOT completely pegged to the $. It has a slight float (albeit still somewhat pegged).

 

If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

 

I wouldn't buy any of the above at any price. 

 

 

[Coronita]

asianautica,

European cars have already gotten more expensive since last year. You just don't realize it first, because what use to be included in the price is no longer. For example, BMW and Mercedes and Audi use to provide free maintanence for 4 years/50k. Mercedes and Audi has dropped this.

The gap in price with the japanese luxury brand is smaller only because the japanese manufacturers raised prices thinking they could command a them. With the exception of Lexus, this is not working. If you look at the latest numbers from Infiniti and Acura for example, sales are drastically down. For example, the Acura MDX which, my is my wife's car, use to b e considerably less than an BMW X5 and Volvo XC90. If you try to price the latest Acura MDX with compariable options, it get's considerably closer to the X5 and XC90. Give any average designer brand label buyer, and given the two choices, I would say fewer people would buy the MDX. That's why MDX sales are down relative to the other makes and brands (ok, it can also because of the weird styling).

 

The Yuan is NOT completely pegged to the $. It has a slight float (albeit still somewhat pegged).

 

If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

 

I wouldn't buy any of the above at any price. 

 

 

[Coronita]

asianautica,

European cars have already gotten more expensive since last year. You just don't realize it first, because what use to be included in the price is no longer. For example, BMW and Mercedes and Audi use to provide free maintanence for 4 years/50k. Mercedes and Audi has dropped this.

The gap in price with the japanese luxury brand is smaller only because the japanese manufacturers raised prices thinking they could command a them. With the exception of Lexus, this is not working. If you look at the latest numbers from Infiniti and Acura for example, sales are drastically down. For example, the Acura MDX which, my is my wife's car, use to b e considerably less than an BMW X5 and Volvo XC90. If you try to price the latest Acura MDX with compariable options, it get's considerably closer to the X5 and XC90. Give any average designer brand label buyer, and given the two choices, I would say fewer people would buy the MDX. That's why MDX sales are down relative to the other makes and brands (ok, it can also because of the weird styling).

 

The Yuan is NOT completely pegged to the $. It has a slight float (albeit still somewhat pegged).

 

If the European cars gets 10-20k more expensive, would you buy a base 3-series/C-class or a loaded GS460/M45 etc?

 

I wouldn't buy any of the above at any price. 

 

 

[xironman]

Hmmm,

So much sentiment against the dollar. Get rid of your dollars while you still can, only an idiot would bet on the dollar, did I tell you how much I made betting on the Euro…. Smells like we are near the bottom, even if the fundamentals still aren’t there.

[xironman]

Hmmm,

So much sentiment against the dollar. Get rid of your dollars while you still can, only an idiot would bet on the dollar, did I tell you how much I made betting on the Euro…. Smells like we are near the bottom, even if the fundamentals still aren’t there.

[xironman]

Hmmm,

So much sentiment against the dollar. Get rid of your dollars while you still can, only an idiot would bet on the dollar, did I tell you how much I made betting on the Euro…. Smells like we are near the bottom, even if the fundamentals still aren’t there.

[xironman]

Hmmm,

So much sentiment against the dollar. Get rid of your dollars while you still can, only an idiot would bet on the dollar, did I tell you how much I made betting on the Euro…. Smells like we are near the bottom, even if the fundamentals still aren’t there.

[Author]

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