Maybe a ridiculous question but one worth discussing. What would happen if Americans and Canadians boycotted the Euro? No travel or buy any European products for a month.
Mar 2nd, 2008, 07:50 AM
#21
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The next month they balance of trade would jump the other way?
Boycotts for a "month, day etc" don't work.
It just moves the demand. It's like those stupid gas boycotts that periodically come out. You know the "Don't buy gas on Wed" emails. They email then tries to convince you that if you do this Exxon, Mobil etc will notice and drop the prices... Yeah right. If you NEVER bought gas again they would notice, but if you fill up on Tuesday or Thursday becuase you "boycotted" Wed... no real impact!
Boycotts for a "month, day etc" don't work.
It just moves the demand. It's like those stupid gas boycotts that periodically come out. You know the "Don't buy gas on Wed" emails. They email then tries to convince you that if you do this Exxon, Mobil etc will notice and drop the prices... Yeah right. If you NEVER bought gas again they would notice, but if you fill up on Tuesday or Thursday becuase you "boycotted" Wed... no real impact!
Mar 2nd, 2008, 07:53 AM
#22
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Why did you include Canadians in the thread title? We have a better exchange rate right now than we've had in years. About the same as the US dollar, actually. And you never saw Canadians or Australians posting on here like the world was ending because our dollars were/are weak.
Here's the world's smallest violin...
Here's the world's smallest violin...
Mar 2nd, 2008, 08:02 AM
#23
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at one time Canadian dollar was almost 40 % lower than the US dollar.
Americans visiting Canada had a good deal ,Canadians going south had to decide if it is worth it.
Same goes for travelers around
the world.
The question may be posted to create discussion but it has no basis in economics 101 : the national debt, markets, supply and demand for a currency, interest rates, price of commodities, and many other variables in fiscal and monetary policies of the US and other countries - all influencing the value of a nation's currency.
Americans visiting Canada had a good deal ,Canadians going south had to decide if it is worth it.
Same goes for travelers around
the world.
The question may be posted to create discussion but it has no basis in economics 101 : the national debt, markets, supply and demand for a currency, interest rates, price of commodities, and many other variables in fiscal and monetary policies of the US and other countries - all influencing the value of a nation's currency.
Mar 2nd, 2008, 08:03 AM
#24
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The problem is NOT the Euro, it is the Dollar - being forced down and down and down even further still so that people will buy our cheap goods rahter than China's - though China is artificially devaluing their own currency in competition w/ us. It is only to the detriment of the people, as the fat cats still post record profits.
But - we're going to Europe anyway in May, and will spend our dollars/euros happily.
Life is just too short to worry too much.
But - we're going to Europe anyway in May, and will spend our dollars/euros happily.
Life is just too short to worry too much.
Mar 2nd, 2008, 08:16 AM
#26
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Currency rates are not driven by tourism. Except for a few small countries that is tiny compared to overall international trade (most of which is company to company and does not directly involve individuals).
And the issues that are causing the tanking of the dollar have much more due to overall US policies (the war, taxation, internal spending choices, and financial policies that affect value of everything in the US - as well as international trade).
What you are suggesting would be like attacking a T Rex with a fly swatter.
And the issues that are causing the tanking of the dollar have much more due to overall US policies (the war, taxation, internal spending choices, and financial policies that affect value of everything in the US - as well as international trade).
What you are suggesting would be like attacking a T Rex with a fly swatter.
Mar 2nd, 2008, 08:32 AM
#28
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I thought travler1959's answer was very insightful.
I have also read in the past, on this board, that the dollar is tied to the price of oil. Price of oil goes up, dollar goes down. So, it would be much simplier to just quit buying so much gas, i.e., ride your bicycle or walk, link trips, and quit driving your SUV than to get everyone to boycott the euro. Plus we will have cleaner air, and we won't have to grow crops (food) for gas.
I have also read in the past, on this board, that the dollar is tied to the price of oil. Price of oil goes up, dollar goes down. So, it would be much simplier to just quit buying so much gas, i.e., ride your bicycle or walk, link trips, and quit driving your SUV than to get everyone to boycott the euro. Plus we will have cleaner air, and we won't have to grow crops (food) for gas.
Mar 2nd, 2008, 08:59 AM
#29
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What Rickmay said.
And,, the "freedom fries" thing didin't just make America "the butt of jokes in Europe",, we thought it ws hilarious too!
My first thought on reading the title of this thread was " the euro is NOT the problem" ..
And,, the "freedom fries" thing didin't just make America "the butt of jokes in Europe",, we thought it ws hilarious too!
My first thought on reading the title of this thread was " the euro is NOT the problem" ..
Mar 2nd, 2008, 08:59 AM
#30
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Hi PL,
>you need to worry a lot more about the level of US debt owned by other countries - particularly China. If they demanded payment in euros....
Why would anyone demand that the US pay its foreign debt in Euros?
Do you know something that we don't?
>you need to worry a lot more about the level of US debt owned by other countries - particularly China. If they demanded payment in euros....
Why would anyone demand that the US pay its foreign debt in Euros?
Do you know something that we don't?
Mar 2nd, 2008, 09:08 AM
#31
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Another funny thing about the "freedom fries" is that the people who changed the name said that they had changed it in the menu.
What language is the word "menu"?
Wasn't it a black mark against Saddam Hussein that he sold his oil in Euros?
What language is the word "menu"?
Wasn't it a black mark against Saddam Hussein that he sold his oil in Euros?
Mar 2nd, 2008, 09:27 AM
#32
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<<< What if European imports were made from American steel, timber, or any other raw materials and produce? Or were made using American software or software licenses? >>>
40% of the components of the average Airbus are supplied by American companies.
40% of the components of the average Airbus are supplied by American companies.
Mar 2nd, 2008, 09:30 AM
#33
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<<< "A boycott of european tourism, if done en masse could provoke European countries to however offer incentives for Americans to travel there - cheaper railpasses, subsidized hotel rates, etc." >>>
Did they do that post 9/11?
Or did they look for other markets to supply the tourists - I understand for example that there are LOTS of middle class Chinese with money to burn
Did they do that post 9/11?
Or did they look for other markets to supply the tourists - I understand for example that there are LOTS of middle class Chinese with money to burn
Mar 2nd, 2008, 09:34 AM
#34
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Exactly, I think both Iraq and Iran are two of the countries who have changed their price for oil from USD to euros, and it was beneficial to them. Of course, that was Iraq under Hussein, and now they have to price it in USD. Maybe Venezuela has also, not sure, they were talking about it.
I thought there were lots of reasons countries might want to require payment in euro rather than USD, and if OPEC changed to the euro from the USD for its standard currency, I think it could affect the value of the USD a lot. Wouldn't it benefit those countries who import a lot of oil from the Middle East (like Japan) as they wouldn't have to get USD and could hold reserves in euro instead of USD. Who wants to have a big investment in a currency (or foreign debt holdings for their currency reserves) like the USD if it keeps dropping.
I really don't know all the details on how payments are made for foreign trade deficits, but that is some of my understanding of the issue , that it would make a big difference. Isn't OPEC still pricing oil in USD?
I thought there were lots of reasons countries might want to require payment in euro rather than USD, and if OPEC changed to the euro from the USD for its standard currency, I think it could affect the value of the USD a lot. Wouldn't it benefit those countries who import a lot of oil from the Middle East (like Japan) as they wouldn't have to get USD and could hold reserves in euro instead of USD. Who wants to have a big investment in a currency (or foreign debt holdings for their currency reserves) like the USD if it keeps dropping.
I really don't know all the details on how payments are made for foreign trade deficits, but that is some of my understanding of the issue , that it would make a big difference. Isn't OPEC still pricing oil in USD?
Mar 2nd, 2008, 10:32 AM
#36
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<<< "A boycott of european tourism, if done en masse could provoke European countries to however offer incentives for Americans to travel there - cheaper railpasses, subsidized hotel rates, etc." >>>
Did they do that post 9/11?
Or did they look for other markets to supply the tourists - I understand for example that there are LOTS of middle class Chinese with money to burn>>>
Not to any great degree, (my industry, so I should know) Prices dropped, but the Americans still didn't come.
The Chinese (smelling a deal) market exploded.
Did they do that post 9/11?
Or did they look for other markets to supply the tourists - I understand for example that there are LOTS of middle class Chinese with money to burn>>>
Not to any great degree, (my industry, so I should know) Prices dropped, but the Americans still didn't come.
The Chinese (smelling a deal) market exploded.
Mar 2nd, 2008, 10:48 AM
#37
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Reality check!
European tourism operates on three levels.
No.1 Elite travel, unlimited supplies of money. We travel and we will travel. Not currency sensitive.
No.2 Middle class travel or ordinary travel. If we can afford it we will travel. Currency sensitive.
No.3 Stowage class...backpackers...students...we will work when we get there. Money is not a concern. We don't worry about air conditioning or dress codes.
Conclusion...Nothing!
European tourism operates on three levels.
No.1 Elite travel, unlimited supplies of money. We travel and we will travel. Not currency sensitive.
No.2 Middle class travel or ordinary travel. If we can afford it we will travel. Currency sensitive.
No.3 Stowage class...backpackers...students...we will work when we get there. Money is not a concern. We don't worry about air conditioning or dress codes.
Conclusion...Nothing!
Mar 2nd, 2008, 12:41 PM
#38
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To even suggest a boycott of European goods or services.
Is to try to lay blame for our weak Dollar on the European Union. Let's face facts. Our leaders over the last 20 years or more.. sold us out. Asians didn't sneek up on us from behind. Our leaders opened the front door for them. Our Dollar is not weak because other currencies are so strong... Our dollar is weak because right now, America is a bad investment. People in the European union are not getting 25% more goods and services for their Euros... A Euro is still a Euro to them.. I read some people hoping that the exchange rate will go the other in the future but, I hate to break the bad news to you... It isn't going to...Ever!
Is to try to lay blame for our weak Dollar on the European Union. Let's face facts. Our leaders over the last 20 years or more.. sold us out. Asians didn't sneek up on us from behind. Our leaders opened the front door for them. Our Dollar is not weak because other currencies are so strong... Our dollar is weak because right now, America is a bad investment. People in the European union are not getting 25% more goods and services for their Euros... A Euro is still a Euro to them.. I read some people hoping that the exchange rate will go the other in the future but, I hate to break the bad news to you... It isn't going to...Ever!
Mar 2nd, 2008, 01:06 PM
#39
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Take Germany as the largest economy in Europe.
Tourism accounts for 8% of the gross domestic product (ranks 3 in the EU, in Great Britain, the share of tourism is only 4% of GDP). This means: Germany is by far the largest market for tourism in Europe.
What would you guess is the share of tourists from the USA (measured by number of arrivals)?
I tell you: 2 (two) per cent.
Although I am aware that it conflicts with American self-esteem: The significance of tourists from the USA for European tourism is MARGINAL. The significance of tourists from the USA for the German economy is 0.16 % (8% share of tourism multiplied by 2% share of tourists from the USA).
Now, you can assess what a boycott would effect.
Tourism accounts for 8% of the gross domestic product (ranks 3 in the EU, in Great Britain, the share of tourism is only 4% of GDP). This means: Germany is by far the largest market for tourism in Europe.
What would you guess is the share of tourists from the USA (measured by number of arrivals)?
I tell you: 2 (two) per cent.
Although I am aware that it conflicts with American self-esteem: The significance of tourists from the USA for European tourism is MARGINAL. The significance of tourists from the USA for the German economy is 0.16 % (8% share of tourism multiplied by 2% share of tourists from the USA).
Now, you can assess what a boycott would effect.
Mar 2nd, 2008, 01:53 PM
#40
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I cannot buy anything more this year than I could buy last year or since the Euro came. Blaming the Euro for the weakness of the dollar is the most absurd thing I've heard lately. Americans (specially the Government) never seem to be able to look at their own belly. I'm sorry the dollar is weak , that's not good for anyone. But sometimes I feel some Americans are too used to think that everywhere they travel is cheaper because of the dollar and that everybody has to bend their knees in front of it (like the ones who think that they can pay in dollars in Europe). Maybe some time in the past it was true, but even with an stronger dollar I think that won't happen again.
