More good news about the falling dollar (health care, Canada, dollars)
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Yep, I have been stating for the past few months that the declining $ isn't the disaster many are assuming it to be. Over the long term, it makes the US more competitive.
If a global recession is inevitable, a weak dollar could help the US in that sense. We would find it easier to export as American goods would be cheaper than say, French goods.
Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Everything has good and bad. The decline is good in that it will make our exports cheaper and bring in tourist. But the bad is that it will also cause some degree of inflation in our economy unless the Fed tightens the cash supply. We just don't know how much because this is uncharted territory and the usual rules don't apply.
WARNING: WARNING: (this is my disclamer).. wild conspiracy theory moment and question time...
Imagine if the government created a weak dollar on purpose, so they could buy back debt cheaper? (we're talking TRILLIONS here, a small change is a huge savings).
Most foreign car dealers just do the assembly here. Cheaper labor.
I would have never guessed that to be true. I alway assumed it was done to placate the US when we make threats of protectionism against those countries that make it hard for US companies to enter their markets.
I still prefer that American companies owned by Americans do the manufacturing and assembling of the products. That way, the profits stay in our country instead of going somewhere else.
The last BMW I bought was "manufactured" in Germany but "assembled" in Pretoria, South Africa. Suffice to say, though it will lose thousands, It's going to be sold at first opportunity. Better a USA-MW than an SA-MW, any day of the week. I didn't realize they were doing this with 3-Series when I bought it, but afterwards when I decided to run the VIN.
But both are BS. When I purchase something labeled BMW, or Toyota, or GM, etc. I want it built in the country and factory where the workers are commited to that brand.
As it is I got suckered and payed a BMW price for a SA-MW. You can bet I'm upset with the representatives that let this happen via the African Economic Growth and Recovery Act.
FWIW, Mercedes is doing the same with the C-Class and I've heard Hummer H3's will be doing the same.
Vote against this practise with your wallet, Don't buy any BMW's Mercedes, or Hummers until they stop this practise.
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