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Still, you have it bass ackwards. Okay. Let’s look at it from a different angle. The Euro is a fairly strong, widely traded currency. Would it be good for the U.S. if we had U.S. expatriates over working in Germany sending Euros home to the U.S.? What would be the effect would it have on our economy if this Euro importation trend continued, and in 10 years a large portion—say 25% or so—of the currency passed in the America was Euros? Would that be a good thing for the United States? Think about what we Americans would have exchanged to get those Euros. The value of the expats' labor would have been exchanged over in Germany. (Over in Germany!)
Would it be good or bad for Germany if this happened? That is, if a bunch of American expats lived and worked over there, sending Euros home to the U.S.? Answer: Germany would have gained the value of the American expat’s labor at a cost of the Euros—not the Euro value sent home to the U.S., but rather the actual cost of printing that many Euros and introducing them into the German economy. I hope you understand that they would introduce enough new Euros into the European market to replace the lost Euros—so they would not suffer inflation due to the loss of their currency.
Would this little scenario happened would Germany be worse off? No—not if they controlled their money supply to negate the effects of the Euros leaving Germany. Would they be better off? Well, yes—to the extent that they enjoyed the fruits of the American expats’ labor in return for trading some currency (which they carefully replaced, replenishing their currency supply).
This is not a terribly difficult concept to grasp. Yet…dunce caps. Oh well, the mere fact that nobody who posts in this forum understands what I am saying about remittances does not make what I’ve said incorrect.
Fine example. Whose economy strengthened more and made a better comeback in the period following WWII? Germany's or Italy's?
I thought we were talking about remittances in this thread.
Again; since you feel the need to demean us anti's here with phrases like 'dunce caps'-----------I do NOT take what you say very seriously.
You clearly have a 'dog in this fight' in favor of illegal immigration--------and, I willing to bet that if said illegals were not Mexican or possibly Central American you would be less sympathetic towards 'em.
Again; since you feel the need to demean us anti's here with phrases like 'dunce caps'-----------I do NOT take what you say very seriously.
Well, you have spent the last several pages mocking what I've said, feigning ignorance. Hence, the tongue-in-cheek dunce cap comment.
Quote:
Originally Posted by ArizonaBear
You clearly have a 'dog in this fight' in favor of illegal immigration--------and, I willing to bet that if said illegals were not Mexican or possibly Central American you would be less sympathetic towards 'em.
A DOG? My dog is a golden retriever. Sitting here at my feet as I type away. Quite a loyal, friendly dog she it. And I don't think she is a Mexican or Central American dog. Couldn't be. She is blonde.
And since the only way remittances can be good for the economy is that they permanently leave the economy and must never come back, we should print up trillions of remittance dollars that are separate from ours.
This would work IF we could get enough immigrants to work and earn the trillions of remittance money, and IF the Fed could introduce that much cash into our economy without wreaking havoc. In practice "trillions" of dollars would probably be too much for us to digest. A trillion is a lot of wampum.
My god, are you really that clueless about economics??
Seriously!
Did you step out of the line, when they were giving out common sense and most importantly, brains?
Lets use our brains and think about that as our dollar tanks.
I'll post one reason why your thinking, is flawed. Then you and the other posters can add one to convince us, the users of this forum, how you came to that conclusion.
1.) When dollars leave our borders, that is less dollars spent in America, to keep America going and prospering.
Next.
So, we are talking economics??? In fact mr monkey is completely right,
one half of all the paper money ever produced by the US treasury sits
outside the usa, this is approximately 2 cuatrillion dollrs (2,000 trillion dollars) if that money is ever re-introduced to the usa, we would have
worse inflation than any other country, our economy would simply collapse.....
The value of the expats' labor would have been exchanged over in Germany. (Over in Germany!)
Would it be good or bad for Germany if this happened? That is, if a bunch of American expats lived and worked over there, sending Euros home to the U.S.? Answer: Germany would have gained the value of the American expat’s labor at a cost of the Euros—not the Euro value sent home to the U.S., but rather the actual cost of printing that many Euros and introducing them into the German economy. I hope you understand that they would introduce enough new Euros into the European market to replace the lost Euros—so they would not suffer inflation due to the loss of their currency.
Would this little scenario happened would Germany be worse off? No—not if they controlled their money supply to negate the effects of the Euros leaving Germany. Would they be better off? Well, yes—to the extent that they enjoyed the fruits of the American expats’ labor in return for trading some currency (which they carefully replaced, replenishing their currency supply).
That is not the case. The value of what labor? If the Americans are over there to lower wages and get unemployment levels way up to near Depression levels, then no - the American labor would not be of any benefit.
If the Americans were there to become a cheap labor servant class, depending on welfare handouts to supplement their cheap wages -- then no, they would be harmful to Germany and even if they sent $400 a month back to the USA, they would not be adding to the productivity of the USA, or paying taxes to either nation.
Much cheap labor benefits no one at all. Certainly not the displaced and now idle American worker. And there are no benefits at all if the cheap labor is for making someone's bed or raking leaves simply because they are too lazy to do it themselves. The economy is not better off without live-in nannies paid dirt so that yuppie housewives can lay around or socialize all day, it would be better to have legal wages paid to legal day care centers. Society benefits in no way if your bed gets made and is not affected if it is left unmade.
The overbuilding of cheaply built houses has left a big glut on the housing market, house prices are falling, foreclosures are climbing. The cheap labor builders brought in millions of illegal laborers to build those houses but for what? Many sit empty and if they sit empty a few years, they will only be good for tearing down. The illegals sent out much of the money from the housing bubble.
Remittances are very much like welfare checks going to the inner cities. They are an influx of cash but that's all, they bring about no investment, no building up of an economy.
“While it is too early to project by how much remittances may decline in 2009, this is bad news for millions of people in our region who depend on these flows to make ends meet,” said IDB President Luis Alberto Moreno.
“The issue has become more complex, as more factors have come into play. The world is facing its worst economic crisis in recent memory. Unemployment is rising in industrialized nations. The climate against immigration is becoming harsher. Even exchange rate fluctuations are playing a larger role than before,” Moreno noted.
A decline in remittances is likely to translate into greater demand on social safety networks by families who rely on money flows from abroad to cover basic expenses. The IDB has been advising borrowing member countries since before the crisis exploded on strengthening their social programs.
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