Will US car prices have to rise? Weakening dollar

[IboughtafreakingBMW!]

I don't mean to start a flame war or make fun or anything, but has anyone noticed the US dollar is dying?

Seriously, its in a tremendous downward spiral. Oil is over $90. The Canadian dollar is worth 1.04USD which is just unimaginable to me.

A BMW in Canada costs way more than in the US and I feel quite bad about buying here in the summer rather than hunting for a used US one.

How can this continue without US car prices increasing. I know more cars will start being made in the US etc and that this will be "good" for the US economy in the long run to reduce trade deficit. But in the short term it has to be brutal for European and Japanese car makers. Its killing Canadian manufacturers who needed to be more productive anyway.

I find it hilarious when people start quibbling about shocking 135i prices in the $35to36k range. The USD is collapsing.

I am supposed to go to the US for a year and I knew I would take a pay cut, but this is ridiculous. The whole country is on sale like I never could have imagined.

[O-cha]

It will go back up no matter who in office. But bush going out soon will fix it that much quicker.

[ArmyBimmerDude]

Originally Posted by O-cha

It will go back up no matter who in office. But bush going out soon will fix it that much quicker.

Absolutely. When Bush is gone and they stop asking congress for billions of dollars because of Iraq/Afghanistan it'll go back up.

[DasBlitz]

What is with this notion that once Bush is gone the United States will randomly go crazy and be up again?

Do you really think the President has that much control? This is due to Congress fucking around and due to the general public.

Did Bush cause all these foreclosures recently, because people were dumb and purchased homes they cant afford? People need to get real and realize it is more than just the President that we should be getting rid of and we should be looking at ourselves.

[darkcloud]

Originally Posted by DasBlitz

Did Bush cause all these foreclosures recently, because people were dumb and purchased homes they cant afford? People need to get real and realize it is more than just the President that we should be getting rid of and we should be looking at ourselves.

Someone really does have a brain. Glad to see not everyone is a brain washed guppie. People are inherently stupid, thus our shitty economy which is not just one persons fault. The American way is just easier to point a finger then admit to being a fuck up.

[O-cha]

Originally Posted by darkcloud

The American way is just easier to point a finger then admit to being a fuck up.

I'm not a "fuck up" speak for yourself.

[darkcloud]

Originally Posted by O-cha

I'm not a "fuck up" speak for yourself.

I wasn't talking about you. I was speaking in general.

[bartman32]

Originally Posted by DasBlitz

What is with this notion that once Bush is gone the United States will randomly go crazy and be up again?

Do you really think the President has that much control? This is due to Congress fucking around and due to the general public.

Did Bush cause all these foreclosures recently, because people were dumb and purchased homes they cant afford? People need to get real and realize it is more than just the President that we should be getting rid of and we should be looking at ourselves.

It's not that Bush has that much control its the situation. We are at the end of a 2 term presidential term. He is for all purposes a lame duck president at this point. meaning that no one is at the wheel trying to help the economy because their re-election counts on it. The Democrats would rather the economy tank because they can blame it on Bush. The Republicans don't really care because if they get into office they can claim they turned it around and blame it on the Democrats. It's not about the president but the upcoming elections.

That's not to say that everything will be fixed once whoever gets into office they will have a lot to do. But then again all of these foreclosures and stuff should start to turn around by the time the next person gets in office just in time for that person to claim that they have done a fantastic job at their 90 days in office.


It's all about timing and perception.

[Year's_End]

Originally Posted by darkcloud

I wasn't talking about you. I was speaking in general.

Haha...

*Silence*

[Kiemyster]

Originally Posted by DasBlitz

Did Bush cause all these foreclosures recently, because people were dumb and purchased homes they cant afford? People need to get real and realize it is more than just the President that we should be getting rid of and we should be looking at ourselves.

exactly. I know about the NY market, so i speak from there. ive noticed 95% of these people in foreclosures manage to keep up their car payments, driving a fancy car, but deside to neglect the house payments. and whats even more fucked up is that the banks are now taking heavy losses. my friend in rosedale just sold someones house. they sold it for 200, they owed the bank 250, bought it for 280. so now the bank is taking a 80k loss plus the brokers fee (6%). so this makes it crystal clear why the dollar is so bad, little wanna be g-unit home boys rather have a hummer H2 on 35's than their house. end of story

[IboughtafreakingBMW!]

I am not sure if this will turn around as easy as some would like.

The US is running a huge trade deficit and frankly spending beyond its capacity.

The greenback is losing its status as the world's reserve currency. China has something like a trillion dollars in its foreign currency reserve. Thats a huge economic club to use.

A country can't stay a superpower if it is broke. I am generally worried about this. The USA is a great country and despite its flaws who else would you want to be the most powerful country in the world? But it seems like the US media and the average citizen aren't concerned and haven't noticed. Everyone seems oblivious that a $700 billion trade deficit will mean the end of a good economy.

Higher BMW prices will be the least of anyone's worries.

[mpimping]

can we make money shipped US goods overseas?

[sambonator]

Originally Posted by mpimping

can we make money shipped US goods overseas?

What? You mean make money shipping Pontiac Grand Am's and Jeep Cherokees to China?

[toofasttooslow]

I have the solution. Start printing other government's monies in bulk and re-ciruculating them into the economy. That will surely decrease their currency value. It sure did for us when the Fed decided to bail out all those greedy lying mortgage fucks.

I'm really trying to be sensitive here but really,we should have let all those foreclosures happen the way that they have been doing for years. If you were stupid enough to sign up for one of those 5-1 ARM's then you deserve to have your house taken. Over extending yourself is stupid with a capital "S". These boneheads are the #1 reason our economy is tanking and will be the reason for the next recession (btw it's coming also). I'd like to see the Fed grow some balls and stop playing bleeding heart economic policy.

And don't get me started on the hedge fund lackies either ...sheesh what a price to pay for so many for so few to get filthy rich.

Oh yeah to keep it on topic...Of course cars will be more expensive. Anything imported will cost more, and if inflation starts popping up (as it probably will in the not so distant future)even domestic goods will cost more.

[DFW_M]

Originally Posted by gum5h03

I have the solution. Start printing other government's monies in bulk and re-ciruculating them into the economy. That will surely decrease their currency value. It sure did for us when the Fed decided to bail out all those greedy lying mortgage fucks.

I'm really trying to be sensitive here but really,we should have let all those foreclosures happen the way that they have been doing for years. If you were stupid enough to sign up for one of those 5-1 ARM's then you deserve to have your house taken. Over extending yourself is stupid with a capital "S". These boneheads are the #1 reason our economy is tanking and will be the reason for the next recession (btw it's coming also). I'd like to see the Fed grow some balls and stop playing bleeding heart economic policy.

And don't get me started on the hedge fund lackies either ...sheesh what a price to pay for so many for so few to get filthy rich.

Oh yeah to keep it on topic...Of course cars will be more expensive. Anything imported will cost more, and if inflation starts popping up (as it probably will in the not so distant future)even domestic goods will cost more.

+1
Exactly -- wars are expensive. And this lunatic wants to start another one.
Other bad thing is that some other countries -- for example China, have so much $$$ reserves that it would be easy to bring dollar to a pesos value by releasing some of those into the market. Of course, at this point it is not in their interest to do it, but...
Russia is in very similar position...

[ArmyBimmerDude]

Originally Posted by dr325i

+1
Exactly -- wars are expensive. And this lunatic wants to start another one.

An estimate from a website puts the grand total for JUST IRAQ, not Afghanistan to $360 billion per year and Bush is attempting to raise that figure to approximately $450 billion per year. That total also doesnt include the payments to disabled veterans and hospital costs.

[berm3]

Don't worry guys, Hillary will make everything right.

[TheLegacy]

The US isn't alone

Japan follows the US in every way and they're heading downwards and not just because of our economy but they brought that upon themselves.

You think China is a super power? Wait for its HUGE collapse, oh it will come. When you have a bunch of lil emperors and now females... Population is alllll the way up here, its now dropping. Population is so big u can't notice yet.

The US economy is like a fashion fad, its always changing every couple of yrs

[335montego]

Don't worry guys, Hillary will make everything right.

[The Cleaner]

Today the Euro is trading at 1.44 dollars thats a slide that I don't expect the USD can recover from. The Dollar is finished as the currency of choice, I don't see how it will come back from that level of depreciation without paying off some debt.

[RichP]

Does this come as a surprise? Everything, from manufacturing to tech jobs, is outsourced to foreign countries (China and India primarily). In the US, everyone is maxxed out on credit to afford things they don't need. Meanwhile, we have this bleeding ulcer of cash output that is the war and "homeland security."

If the US is not producing anything, whether it be intellectual product or physical product, where is our value on the world stage?

[toofasttooslow]

Originally Posted by RichP

Does this come as a surprise? Everything, from manufacturing to tech jobs, is outsourced to foreign countries (China and India primarily). In the US, everyone is maxxed out on credit to afford things they don't need. Meanwhile, we have this bleeding ulcer of cash output that is the war and "homeland security."

If the US is not producing anything, whether it be intellectual product or physical product, where is our value on the world stage?

Yep. Techincally the US has been bankrupt for some time. After Clinton left office the national debt tripled within the first year (thanks George) because of careless spending practices and wartime funding. I wonder how many people read that the budget for last years intelligence spending was over 47 billion (that's billion with a B) dollars. Somehow I really doubt that we weren't able to see WMD's in Iraq with a huge budget like that. So for now the good times are over for our purchasing power on goods and services. I predict a recession within the year and inflation to edge upwards of 10% again by this time 2009. We're in for a long haul people so start bailing yourselves out now while you still can.

Edit: oh yeah, invest in gold or other precious materials as the greenback will be worthless pretty soon.