Jay Z's Latest Video Shows Him With Euro's Instead of Dollars

[phrozen06]

In his latest video American Gangster he is shown flippin through his Euros. We all know that the Euro is worth more than the Dollar and he's obviously a business man but how can the dollar recover from the mess it's in?

As a point of reference 1.46 dollars = 1 euro. What are the causes of this? What's the skinny?

Also United Arab Emirates are considering doing business in Euros instead of Dollars and supermodels want to be paid in Euro's now.

[NaViT]

and the euros got a $500 bill... we suck

[phrozen06]

Didn't know that about the euros. But this is a bad trend for us to have the dollar to plummet soo low.

[FirstClass]

It's cyclical. Give it 5 years it will be back up at the very least.

[phrozen06]

Originally Posted by FirstClass

It's cyclical. Give it 5 years it will be back up at the very least.

I understand things being cyclical but this situation seems a little different

[Los Angeles]

It's cyclical in the short-run but, in the long-run it's still going downward compared to the Euro.

I guess the always-growing national debt is of no concern either.

[drF80]

Originally Posted by Los Angeles

It's cyclical in the short-run but, in the long-run it's still going downward compared to the Euro.

I guess the always-growing national debt is of no concern either.

I agree, this time it is very different.
We're drained and in a very bad position.
On the other side China has no deb and $1.5 trillion cash in reserves --> release that and Euro will be $5. Russia has no debt and their reserves are growing. We have almost $10 trillion of debt that we don't care about as the world power. Our debt is growing rapidly and other countries and business are looking more and more the other way to invest. And all out Prez and Admin are talking about are new wars and more spending...

This is very different and although the economy is very cyclical process, I doubt the dollar will ever (or soon) be above Euro (as it was at one point in 2000).

[fobunited]

Just because the dollar is below the Euro does not mean the world (or America) is coming to an end. The dollar is not and has not been the strongest currency. The pound has been worth more than the dollar for longer than I can imagine.

The value of the dollar affects different aspects of business as well as the lives of Americans, especially those wishing to travel abroad. We must also remember the flipside: a strong Euro compared to the dollar makes European goods that much more expensive, and therefore that less attractive to American goods.

With America being one of the world's largest consumers of goods, the decline of the dollar versus the Euro also hurts European business.

Take this business case, although limited, as an example. An international airline is planning to purchase new aircaft. They have their eyes on the Boeing Dreamliner as well as the Airbus A380. From a purely cost effective standpoint, the Boeing would be more attractive due to value.

Of course the above example is extremely limited in scope, but I think the point is clear: the declining dollar in comparison to the Euro makes American goods more attractive to international buyers, which is something the domestic market needs.

China and Russia (throw in Brazil, India, Vietnam, etc.) are all considered Emerging Markets. Yes, their debts are low and cash reserves are high, but that money is going to go towards building up their respective country's infrastructure. Considering how much the US and US investors are vested in these countries, and their growth correlates to the growth of the United States economy.

If I was a celebrity or whatever and wanted a form of currency as an investment choice, why not choose the Rupee instead? It has more growth potential than the Euro.

[drF80]

Originally Posted by fobunited

Just because the dollar is below the Euro does not mean the world (or America) is coming to an end. The dollar is not and has not been the strongest currency. The pound has been worth more than the dollar for longer than I can imagine.

The value of the dollar affects different aspects of business as well as the lives of Americans, especially those wishing to travel abroad. We must also remember the flipside: a strong Euro compared to the dollar makes European goods that much more expensive, and therefore that less attractive to American goods.

With America being one of the world's largest consumers of goods, the decline of the dollar versus the Euro also hurts European business.

Take this business case, although limited, as an example. An international airline is planning to purchase new aircaft. They have their eyes on the Boeing Dreamliner as well as the Airbus A380. From a purely cost effective standpoint, the Boeing would be more attractive due to value.

Of course the above example is extremely limited in scope, but I think the point is clear: the declining dollar in comparison to the Euro makes American goods more attractive to international buyers, which is something the domestic market needs.

China and Russia (throw in Brazil, India, Vietnam, etc.) are all considered Emerging Markets. Yes, their debts are low and cash reserves are high, but that money is going to go towards building up their respective country's infrastructure. Considering how much the US and US investors are vested in these countries, and their growth correlates to the growth of the United States economy.

If I was a celebrity or whatever and wanted a form of currency as an investment choice, why not choose the Rupee instead? It has more growth potential than the Euro.

How ignorant and uneducated...
China's infrastructure was expanding unbelievably in the last 10 years while their debt was disappearing and their reserves increased. They are definitely not saving up to expand infrastructure. They are doing both. Shanghai was a village 15 years ago, today is 20 years ahead of NYC. Same for Beijing, Shenzhen, Guangzhou, Chengdu and many others. Of course, with the population ratio of more than 5x than the USA, it will always be a challenge for them to make everyone happy...
Russia is doing it all more quietly...

As for the weak dollar hurting European markets... The only ones hurt are us! Go and get a $15 hamburger in Paris, and so on. They have so many other ways to invest and make money than the US.

It has "more growth potential" than Euro???!!! Is that the way to look at it. So does ENRON, then. They are dead now, but if you start them up today, your chances are great...

The US economy is on the big downturn today. in the early 2000's we had a small (cyclical) recession that we just rode out. If that happens again in the near future, the way out will be much tougher. On top of it, we will have 70 million people retire very soon...

To sumarize -- with your savings worth much less today than 10 years ago, with no respect in the world, with (at least) three huge emerging powers and economies in the world looking to take it over from us, with the war that is dripping a little we have every day and with 70 million workers that will stop producing and start taking in next few years -- the outlook is scary!

[fobunited]

First, China's infrastructure HAS been expanding for the last 10 years is true, but ignores the fact that the majority of China is nothing like Shanghai & Beijing, but as you said, villages. They still have along way to go, and internationally is still considered an "Emerging Market."

Second, if you read my post, I mentioned the decreasing value of the dollar hurting Americans, especially those who shop internationally such as buying a $15 burger. I also mentioned how that would correlate in hurting European business. I agree that European business has many different ways to invest and make money, but as I said, losing US business is going to hurt pretty much any country.

If you look over the past 3 years, the Emerging Markets segment has grown at a much higher and faster pace than the European Market segment. Just because the value of the Rupee is low doesn't make it equivalent to investing in Enron! Now THAT was an uneducated comment. Enron would be considered an extreme value, and speculative grade. Investing in India, an economy and country that is growing at an incredible pace, would be wise.

Take this for example: Compare Mutual European (TEMIX) to Goldman's BRIC (GBRAX), which would be a standard comparison of the general Emerging Markets to Europe. You will see that Emerging Markets is growing at a MUCH faster and higher pace than Europe. In fact, BRIC achieved the same amount of growth that Mutual European had over 4 years in one year!

Given that, what IS BRIC made of? 85% Brazil, Russia, India, and China.

70 million people (baby boomers) retiring soon will probably HELP the US economy. Yes, it will drain our social security, but considering that the 70 million isn't going to retire all at once, but rather over a span, and that their retirement could correlate with more spending, and therefore boost the economy in the long run.

Lastly, to summarize, if your money is in a savings account, then yeah you will be doomed regardless of how the US economy fairs. Unfortunately, the majority of American's DON'T invest and don't know how to. Considering the top levels of the American population DO invest globally, they most likely will have nothing to worry about. So in short, don't worry about the Euro dampening the US economy, the US economy is only a small portion of how the US fares as a whole. The downward cycle of the US economy makes us more competitive. If you ARE worried, invest in some International, European, and Emerging Markets and capitalize on your fears.

[DasBlitz]

Whoever thinks we are going to actually have a good economy in the next 5 years is a joke. The only way that will happen is if the Iraq war is near completely done(meaning pulled out and no bases etc.) and also if we make sure we back up our money with gold, instead of printing play money.

Also numerous other things. None of which I see happening. I love this country and think we are resilient. But not with our current population.

[ianbiz]

Should I empty all my bank accounts and all my money into euros and stick it under my bed until the election?

[drF80]

Originally Posted by ianbiz

Should I empty all my bank accounts and all my money into euros and stick it under my bed until the election?

too late now...
or is it?

I think the Dollar will come back (may not have hit the bottom though), but definitely not to the old value... Same for gas, and...many other things.

One thing I simply don't understand is that our Gov't tetlls us that our inflation y/y is about 4% or so, but I have not seen a single product that did not jump at least 15% (y/y) and I know of nobody that had a salary increase of more than 3-5%...

[ianbiz]

Originally Posted by dr325i

too late now...
or is it?

I think the Dollar will come back (may not have hit the bottom though), but definitely not to the old value... Same for gas, and...many other things.

One thing I simply don't understand is that our Gov't tetlls us that our inflation y/y is about 4% or so, but I have not seen a single product that did not jump at least 15% (y/y) and I know of nobody that had a salary increase of more than 3-5%...

I think it might come back about 2months before the election.
And your right about the inflation thing. Iraq + Bush ftl

[drF80]

Originally Posted by ianbiz

I think it might come back about 2months before the election.
And your right about the inflation thing. Iraq + Bush ftl

It is simple addition...but then, some mechanic here may add it a little bit different...and we're living the best days of our lives...

I am a bit concerned about my kids though...especially seeing China in the late 90's and today, seeing Russia before the fall of COmmunism (USSR) and recently, living in Europe until 1991 and spending some time over there recently... They all moved forward so much....
As for us...we invaded some countries, they kept taking our taxes and telling us that we will be safer, then the report comes saying that all the money and time was wasted for nothing...
But the social security, healthcare and so on cannot be brought back. The respect we lost will be hard to get back...

[ianbiz]

Originally Posted by dr325i

It is simple addition...but then, some mechanic here may add it a little bit different...and we're living the best days of our lives...

I am a bit concerned about my kids though...especially seeing China in the late 90's and today, seeing Russia before the fall of COmmunism (USSR) and recently, living in Europe until 1991 and spending some time over there recently... They all moved forward so much....
As for us...we invaded some countries, they kept taking our taxes and telling us that we will be safer, then the report comes saying that all the money and time was wasted for nothing...
But the social security, healthcare and so on cannot be brought back. The respect we lost will be hard to get back...

I can easily see one of those nations helping us out, and that isnt a good thing