US Dollar sinks to new low against Euro

"Bill Daniels" wrote in message
news:Yapmd.46422$5K2.25371@attbi_s03...

The low value of the US Dollar is largely due to the US central banks
interest rate cuts post "Dot Bomb" and 9/11.

The record US budget deficit also has a bit to do with it.

Vaughn

The dollar will really be low if foreign countries stop financing our
budget deficit.


Vaughn wrote:
"Bill Daniels" wrote in message
news:Yapmd.46422$5K2.25371@attbi_s03...

The low value of the US Dollar is largely due to the US central banks
interest rate cuts post "Dot Bomb" and 9/11.


The record US budget deficit also has a bit to do with it.

Vaughn

I'd have guessed record deficits had something to do with it as well,
but maybe I'm confusing concurrency with cause.

Yup, it's a pun.


"Bill Daniels" wrote in message news:Yapmd.46422$5K2.25371@attbi_s03...
"Ruud" wrote in message
om...
(Tom Seim) wrote in message
om...
(Mike Stringfellow) wrote in message
. com...
The US dollar is now valued close to 0.75 Euro, down from its peak of
1.25 a couple of years ago. Analysts say it may go even lower, with
some projecting exchange rates of 0.7 (1.4 dollar to the Euro).

This has pretty much put the kibosh on my goals of buying a new
European sailplane. A model at, say, Euro 85,000 cost around $70,000
a couple of years ago, is now around $110,000 and may soon be at
$120,000.

Economic models would suggest a strong incentive for sailplane
manufacture in North America, but I wonder if the numbers of potential
sales would justify this.

Any thoughts?

Yes, invest your money and wait. For instance, if you put your money
in a high quality mutual fund you will begin accumulating principal.
Take your $70,000 and put in a Morningstar 5-star fund (i.e. Fidelity
Contrafund). If you average 15% return the numbers a
Year Amount
0 $70000
1 80500
2 92575
3 106461
4 122430
5 140795
6 161914
etc.

At some point the price of the glider, converted from euros, is going
to be less than your investment. BUY THE GLIDER! This is, simply, the
power of compounded interest.

Don't agree with my numbers? Then put your damn money into a mattress
and see what happens!

The moral of the story is that patience is on the side of the buyer.

Interesting story.
The only trouble with it is that an average return of 15% on your
investment is not enough to keep up with the free fall of the US
dollar.

It's time to drag out the old quote spoken by JP Morgan, "The market will
fluctuate". That's true of exchange rates as well as stocks. Economic
forces are largely self correcting especially in the international economy -
although the time scale of the correction may be long. The US economy has a
lot of problems but then so does all other world economies.

The low value of the US Dollar is largely due to the US central banks
interest rate cuts post "Dot Bomb" and 9/11. US interest rates are now on
an upward trajectory and that will raise the value of the US Dollar over the
next few years. International money fund managers know this and will be
slowly moving money into the US economy which will amplify the effect.

The advice to sit tight and invest is a good one. Maybe buy an old glider
and enjoy flying it while the exchange rate corrects.

Bill Daniels

(Ruud) wrote in message . com...
(Tom Seim) wrote in message om...
(Mike Stringfellow) wrote in message . com...
The US dollar is now valued close to 0.75 Euro, down from its peak of
1.25 a couple of years ago. Analysts say it may go even lower, with
some projecting exchange rates of 0.7 (1.4 dollar to the Euro).

This has pretty much put the kibosh on my goals of buying a new
European sailplane. A model at, say, Euro 85,000 cost around $70,000
a couple of years ago, is now around $110,000 and may soon be at
$120,000.

Economic models would suggest a strong incentive for sailplane
manufacture in North America, but I wonder if the numbers of potential
sales would justify this.

Any thoughts?

Yes, invest your money and wait. For instance, if you put your money
in a high quality mutual fund you will begin accumulating principal.
Take your $70,000 and put in a Morningstar 5-star fund (i.e. Fidelity
Contrafund). If you average 15% return the numbers a
Year Amount
0 $70000
1 80500
2 92575
3 106461
4 122430
5 140795
6 161914
etc.

At some point the price of the glider, converted from euros, is going
to be less than your investment. BUY THE GLIDER! This is, simply, the
power of compounded interest.

Don't agree with my numbers? Then put your damn money into a mattress
and see what happens!

The moral of the story is that patience is on the side of the buyer.

Interesting story.
The only trouble with it is that an average return of 15% on your
investment is not enough to keep up with the free fall of the US
dollar.

Your grasp of international money markets is truly awesome! Have you
considered running for Alan Greenspan's job?

You might bother to check out what has happened historically to
international exchange rates: they oscillate. This is merely one more
cycle in the oscillation. Otherwise, by your logic, the dollar will be
worthless in 5-7 years. Invest and wait, that's my advice. Of course,
if you're loaded with dough, go for it!

The business types seem to be saying that the US dollar has only begun to
fall and that it could fall much faster now that it is at record lows vs the
Euro.

That aside... what gliders are being produced in the US? I believe the
Peregrine is very close, there's the SparrowHawk. What else? And will anyone
Stateside be able to come up with a (different thread) moderate performance,
moderate price, self-launcher?

Wad.


"Mike Stringfellow" wrote in message
om...
The US dollar is now valued close to 0.75 Euro, down from its peak of
1.25 a couple of years ago. Analysts say it may go even lower, with
some projecting exchange rates of 0.7 (1.4 dollar to the Euro).

This has pretty much put the kibosh on my goals of buying a new
European sailplane. A model at, say, Euro 85,000 cost around $70,000
a couple of years ago, is now around $110,000 and may soon be at
$120,000.

Economic models would suggest a strong incentive for sailplane
manufacture in North America, but I wonder if the numbers of potential
sales would justify this.

Any thoughts?

Earlier, "Waduino" wrote:

...What else? And will anyone Stateside
be able to come up with a (different
thread) moderate performance,
moderate price, self-launcher?

We're working on it. Update number 100 shows some drawings that Brad
Hill did for fitting a sustainer-sized motor into the basic HP-24:

http://www.hpaircraft.com/hp-24/upda...ovember_04.htm

We're also looking at what it will take to fit a larger self-launch
sized motor in back there. We're working on it as fast as we can
afford to.

Thanks, and best regards to all

Bob K.
http://www.hpaircraft.com

I won't start a new thread.....I'll leave that up to those interested
in pursuing such a thread, But Bob K. is on the right track with the
HP-24.

Brad
N199AK

That aside... what gliders are being produced in the US? I believe the
Peregrine is very close, there's the SparrowHawk. What else? And will anyone
Stateside be able to come up with a (different thread) moderate performance,
moderate price, self-launcher?

Wad.