Dollar getting weaker ;_;;;/

LejuN · Nov 10, 2004

After ordering from cdJapan I saw their current exchange rate is 104 yen to the dollar. I went to check and the official rate is trading at 1.07. Just last week or so it was at 113 and about 118-120 average for the last year or so.

I was watching a report that says the dollar will be getting weaker overseas overall in the coming months. ><

I can handle it staying within the 1 for 100 yen range, but any less is going to be tough with the already high Japanese prices o-o;

I remember when I first started getting into anime about 14 years ago or so, the dollar was weak and the yen was extremely high. I think it was about 55 yen to the dollar. Making an artbook I wanted to purchase in the range of $110. I don't think we will see this happen anytime soon again (given Japans economy), but the thought of it freaks me out just a little

+LejuN+

Emirufish · Nov 10, 2004

That's depressing. Especially since I'm going to Japan for the year (hopefully) in 2005 ><;;; Money is already a huge issue. I'm going for school and if being a college student in Louisiana isn't already expensive enough, being a college student in Japan is going to be like....*&^%$#@%^&*%^$R

So ugh.

Illaparatzo-sama · Nov 10, 2004

Yeah... it's totally gonna suck soon :cry:

1<>100 makes for a nice and even exchange, but I'm sure it'll drop lower than that soon. Maybe my CDJapan bonus points will cover it!!

flowersofnight · Nov 10, 2004

Here's an interesting site which has exchange rate data from the past decade or so:
http://www.newyorkfed.org/markets/fxrat ... l/home.cfm

I made a nifty Excel chart of it but I can't upload it now... Anyway, it looks like we're about where we were in 1999, exchange-rate-wise.

LejuN · Nov 10, 2004

140+ in the mid ninties... +___+

+LejuN+

lolita_mana · Nov 10, 2004

O.O This really stinks....and I might be going to Japan in the summer with my friend...and her family... :cry:

Arison · Nov 10, 2004

And while the American dollar sinks, the Canadian dollar rises! <_</ *cheers and flees*

inertia · Nov 10, 2004

All my money is in yen. All my debt is in US dollars. I just calculated the amount by which my debt was devalued in the past week according to those rates and while I don't want to write the exact number, I'll just say that it's the equivalent of about 3 minimum monthly payments. ::dix::

Akito · Nov 10, 2004

Yup, I'm expecting it to go down even more over the coming years. Everyone wants Euros now, no one cares about the US dollar

Time to move to London I guess . . . :grin:

(yes I know they still use GBP in London)

MonoChromeSerpent · Nov 10, 2004

Not to start any political flame here!!!
But according to what i read on paper and my analysist as an amature Economic major student. All the freakin spending on the Iraq War has really inflated the American Dollar!!! Which is normal for any kind of Government investments!! I guess we'll just have to stick w/ that for a while!! Thank you very much BUSH!!!

Cianide · Nov 10, 2004

Based on the site flowers provided, it seems that throughout the year it's been going up and down. It'll most likely rise again :3

LejuN · Nov 10, 2004

Well... yeah. hehe. It will go up and down. But the point is it is going down now and could get lower and lower. Not good if you purchase lot's of stuff or plan to take a trip to Japan in the near future.

+LejuN+

Gier · Nov 10, 2004

Japanese money is so deceptively easy to spend, with 100 yen pieces seeming like Quarters over there. Just be very careful if you go into any Arcades, money can dissapear quickly after a few rounds of Toki Toki.

minagoroshi · Nov 10, 2004

i still have about 3000yen in coin in my room...no where will exchange it...but now i think i am gunna hold onto it untill i go back

Dix Princesse · Nov 11, 2004

In accordance to what MonoChromeSerpent said, the Iraq war is actually helping the economy because it's being stimulated. And the fact that the dollar is depreciating is a good thing because other countries are going to buy more US products which will put even more money in the system.

I would get into all the details but I don't want to bore everyone. And this post is a result of what I learned in AP Economics. XD;;

flowersofnight · Nov 11, 2004

Dix Princesse wrote:
In accordance to what MonoChromeSerpent said, the Iraq war is actually helping the economy because it's being stimulated.

I dunno about that. First off, we've gone into more debt to fund the war, which is one of the inflationary pressures on the economy. Second: this isn't like World War II where the whole economy went into overdrive for war production. I'm sure the munitions, supplies, and logistics industries are doing great now, but I don't think they make up that large a portion of the total economy (which, again, is considerably less industrialized and more service-oriented than in the 40s).

And the fact that the dollar is depreciating is a good thing because other countries are going to buy more US products which will put even more money in the system.

There are two sides to every coin. Yes, our products are more competitive on the export market now, but holding investments in the dollar is less attractive. Imagine you're a bank looking to buy 100 million dollars worth of Treasury bonds or something... maybe that's a less attractive option if the dollar's on a downswing. And in fact this is happening now to some degree, we're seeing slightly less foreign investment, which means it's harder to finance that big war debt - adding more inflationary pressure.

So yeah, I'm not totally convinced a weaker dollar is necessarily a good thing. It depends on your balance of trade etc.

Dix Princesse · Nov 11, 2004

Well because of inflation, debt is a good thing because you'd be paying back the owed amount with cheaper cash.

And I agree that there are two sides to the coin. But to solve that problem the US needs to decrease the number of imports it buys. People have been buying products from other countries and the result of that is the absence of US money in the system.

Of course that's not to say it's a bad thing to buy imported goods, but if the US wants to help its economy it should decrease it a bit.

flowersofnight · Nov 11, 2004

Dix Princesse wrote:
Well because of inflation, debt is a good thing because you'd be paying back the owed amount with cheaper cash.

... o_o
But debt isn't just a number that we have to pay down by any means necessary. The government finances its debt by issuing bonds... in other words, by inviting other governments and individuals to invest in it. If we pay back our debt with cheap money, then the people holding those bonds aren't getting a good deal, are they? And then they will be less likely to invest again, and we'll have a harder time managing our debt.

BTW the Germans tried paying back their World War I debt with cheap money too, back in the '20s... it didn't work too well

And I agree that there are two sides to the coin. But to solve that problem the US needs to decrease the number of imports it buys. People have been buying products from other countries and the result of that is the absence of US money in the system.

I don't think the particular balance of trade matters so much, other than that a weaker or stronger currency may be more favorable depending on the balance of import/export. I don't follow what you mean in the last part though, about having "US money in the system". Can you explain?

Dix Princesse · Nov 11, 2004

Hehe well that's just the thing. The government makes sure that inflation occurs, and it is beneficial to them because they will be paying back the same amount they already owe with cheaper dollars because down the line that amount of money isn't worth as much.

And about the US money in the system thing, what I meant was that if people buy imported products, their US dollars will be going to that country instead of staying in the US, which is not what we want. We want to be able to keep our US dollars flowing in the US.

Radical Dreamer · Nov 11, 2004

Dix Princesse wrote:
In accordance to what MonoChromeSerpent said, the Iraq war is actually helping the economy because it's being stimulated.

Yeah,thats true.It stimulates the Oil and Fuel-Price to rise skyhigh.
But never mind that...lets have some more Wars so that you brilliant Americans can profit more....you make me sick!

Dollar getting weaker ;_;;;/

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