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Author Topic: where is the $ heading??  (Read 14029 times)

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« on: April 29, 2011, 08:22 »
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I am becoming quite worried about the $ conversion, $ everyday drops a little, are USA going down?

honestly I dont know nothing regarding value of the $ and exactly how it goes up or down.. but Europe is quite down, it was Greece than Ireland than Portugal, perhaps Spain soon..

is the $ going down and even more than the EUR?


lthn

    This user is banned.
« Reply #1 on: April 29, 2011, 08:33 »
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yeah, I'd really like to collect credits in something else, it's not gonna be worth tin crap soon... another devaluation of comissions

« Reply #2 on: April 29, 2011, 08:39 »
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It's a concern, every time the dollar weakens, I lose more money.  The exchange rate with sterling was a lot worse for me in 2006, I hope it isn't heading there again.  Currency fluctuations are really hard to predict, I read an expert predicting that the pound was going to go down against the dollar a few months ago and he was completely wrong.  I think the level of US debt could be a big problem but hopefully they will do something to get it under control.

« Reply #3 on: April 29, 2011, 08:40 »
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agreed.  I have had a 20% pay cut so far this year as a result of the low US$

« Reply #4 on: April 29, 2011, 08:55 »
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...I think the level of US debt could be a big problem but hopefully they will do something to get it under control.

There is no way the US can get their debt under control. It's just a matter of prolonging the big bang. It will come eventually...

Slovenian

« Reply #5 on: April 29, 2011, 09:11 »
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...I think the level of US debt could be a big problem but hopefully they will do something to get it under control.

There is no way the US can get their debt under control. It's just a matter of prolonging the big bang. It will come eventually...

I've read about 2014, I hope agencies will switch to EUR long before that or we'll all loose most of our money.

« Reply #6 on: April 29, 2011, 09:27 »
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There is a solution. A dollar is still worth a dollar here.  ;D

« Reply #7 on: April 29, 2011, 09:45 »
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There is a solution. A dollar is still worth a dollar here.  ;D

RIGHT!  ;D got place for one more??

seriously this concerning, I am keeping money on paypal for a long time actually expecting that it will go up but everyday goes lower..

« Reply #8 on: April 29, 2011, 09:46 »
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There is a solution. A dollar is still worth a dollar here.  ;D

Not for long. its only a matter of time before inflation hits the US.

microstockphoto.co.uk

« Reply #9 on: April 29, 2011, 10:33 »
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...I think the level of US debt could be a big problem but hopefully they will do something to get it under control.

There is no way the US can get their debt under control. It's just a matter of prolonging the big bang. It will come eventually...

I've read about 2014, I hope agencies will switch to EUR long before that or we'll all loose most of our money.

I'm sure they will find something more creative, such as delaying payments for days or even weeks and pay us when the rate is better for them, not for us!

« Reply #10 on: April 29, 2011, 10:36 »
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I also kept my money on paypal for when the dollar would get stronger again. Unfortunately it only got weaker and weaker the last 6 months and I don't see it changing soon. Not liking the idea of alot of money on paypal I transferred it to my euro bank account. Wish it was possible to put the money on a dollar bank-account but paypal only accepts American dollar bank-accounts  :-\

« Reply #11 on: April 29, 2011, 11:20 »
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I have a US bank account on a US bank (I'm in Canada). This allows me to get payed in US dollars and keep the money in that currency. I was lucky because a Canadian bank affiliated with the US bank set it up for me. Are there any banks in Europe with a presence in the US?

« Reply #12 on: April 29, 2011, 11:32 »
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Leave your money on Moneybookers or on Paypal if US dollar is your account currency and wait for a better time...
Probably next week will be better...
« Last Edit: April 29, 2011, 18:38 by borg »

dk

« Reply #13 on: April 29, 2011, 11:34 »
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It's only fair that european sites like fotolia and dreamstime start paying in euros.

lthn

    This user is banned.
« Reply #14 on: April 29, 2011, 11:49 »
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There is a solution. A dollar is still worth a dollar here.  ;D

I heard more and more shops accept euro in th USA, so....

velocicarpo

« Reply #15 on: April 29, 2011, 11:53 »
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The Dollar will crash. No doubt. Even if you live in the US you will have to deal with a high inflation.
Personally I cannot understand why the stock companies stay in the US. IRS Problem, a weak Dollar etc.

« Reply #16 on: April 29, 2011, 13:16 »
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Leave your money on Moneybookers or on Paypal if US dollar is your account currency and wait for a better time...
Probably next will be better...
One potential problem with that is that Paypal can refuse you access to your own account at any time. They can do this if there is a problem with your account, even if it is not your fault. You might keep this in mind if there is a chance that you will need the Paypal money in a hurry.

I used to keep a lot of money in Paypal back when they paid some real interest, but I stopped when I learned that they can refuse people access to their accounts. Paypal is not a bank.

« Reply #17 on: April 29, 2011, 13:32 »
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There is a solution. A dollar is still worth a dollar here.  ;D

Not really especially when you start buying foreign goods or want to travel.

lthn

    This user is banned.
« Reply #18 on: April 29, 2011, 13:55 »
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Leave your money on Moneybookers or on Paypal if US dollar is your account currency and wait for a better time...
Probably next will be better...
One potential problem with that is that Paypal can refuse you access to your own account at any time. They can do this if there is a problem with your account, even if it is not your fault. You might keep this in mind if there is a chance that you will need the Paypal money in a hurry.

I used to keep a lot of money in Paypal back when they paid some real interest, but I stopped when I learned that they can refuse people access to their accounts. Paypal is not a bank.

Bank can refuse acces to your money anytime, its just something so far out and unbeleivable to most americans or europeans... but ask someone from argentina...

If the dollar collapses, millions of peple will be refused their money by the banks all over the world.

WarrenPrice

« Reply #19 on: April 29, 2011, 14:01 »
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Leave your money on Moneybookers or on Paypal if US dollar is your account currency and wait for a better time...
Probably next will be better...
One potential problem with that is that Paypal can refuse you access to your own account at any time. They can do this if there is a problem with your account, even if it is not your fault. You might keep this in mind if there is a chance that you will need the Paypal money in a hurry.

I used to keep a lot of money in Paypal back when they paid some real interest, but I stopped when I learned that they can refuse people access to their accounts. Paypal is not a bank.

Bank can refuse acces to your money anytime, its just something so far out and unbeleivable to most americans or europeans... but ask someone from argentina...

If the dollar collapses, millions of peple will be refused their money by the banks all over the world.


I think that happened in 1929. 
But, if you believe everything you hear (or read), none of this will matter after December 2012.   :o ;D
« Last Edit: April 29, 2011, 14:57 by WarrenPrice »

velocicarpo

« Reply #20 on: April 29, 2011, 14:04 »
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You are risking to lose all your money if you leave it in your paypal account. Read the Paypal Terms and conditions. They can and many times simply do refuse to pay you out. Paypal is not reliable.

« Reply #21 on: April 29, 2011, 14:41 »
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Paypal is not reliable.

thats a good one, so what shall we use? come on paypal is fine!!

Slovenian

« Reply #22 on: April 29, 2011, 14:48 »
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I'm using moneybookers and I have their prepaid mastercard. So far so good.

« Reply #23 on: April 29, 2011, 14:58 »
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thats a good one, so what shall we use? come on paypal is fine!!

The sky is falling. Didn't you read it in the paper this morning?  ;D Seriously though... it stinks when you're on the wrong side of currency fluctuations, but isn't that just part of doing global business? You've opened up all these markets with the internet that weren't available before. Whether you're getting paid in a strong dollar, weak dollar, euro; it's all money that wasn't available to you before.

« Reply #24 on: April 29, 2011, 15:08 »
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thats a good one, so what shall we use? come on paypal is fine!!

The sky is falling. Didn't you read it in the paper this morning?  ;D Seriously though... it stinks when you're on the wrong side of currency fluctuations, but isn't that just part of doing global business? You've opened up all these markets with the internet that weren't available before. Whether you're getting paid in a strong dollar, weak dollar, euro; it's all money that wasn't available to you before.

RIGHT! :) but doesnt mean we need to get slammed at Paypal, at US currency and on agencies....!!

« Reply #25 on: April 29, 2011, 15:12 »
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There is a solution. A dollar is still worth a dollar here.  ;D

not if you want to buy something in other parts of the world  ;)

but on the other hand... making a vacation in the USA (or shopping) has become verry cheap (from an european point of view).

lthn

    This user is banned.
« Reply #26 on: April 29, 2011, 15:24 »
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Leave your money on Moneybookers or on Paypal if US dollar is your account currency and wait for a better time...
Probably next will be better...
One potential problem with that is that Paypal can refuse you access to your own account at any time. They can do this if there is a problem with your account, even if it is not your fault. You might keep this in mind if there is a chance that you will need the Paypal money in a hurry.

I used to keep a lot of money in Paypal back when they paid some real interest, but I stopped when I learned that they can refuse people access to their accounts. Paypal is not a bank.

Bank can refuse acces to your money anytime, its just something so far out and unbeleivable to most americans or europeans... but ask someone from argentina...

If the dollar collapses, millions of peple will be refused their money by the banks all over the world.


I think that happened in 1929. 
But, if you believe everything you hear (or read), none of this will matter after December 2012.   :o ;D

Things like that happened several times all over the world since that... but not of the magnitude we are facing now. What I'm afraid is that it will matter after 2012, for years and we'll have to live with it : )

« Reply #27 on: April 29, 2011, 17:29 »
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While we are bashing the US dollar, lets do a little bashing of the Euro. I wouldn't be surprised if the Euro doesn't even exist in 5 years. Some prominent European economists are wondering the same thing, because ultimately Europe has to deal with the bipolar nature of its economic structure. On the one hand you have economies like Germany that are historically very strong, while on the other end you have economies like Greece, Portugal, Spain and Ireland that are in the toilet, and asking for hand outs. In the past this disparity was managed by the poorer countries devaluing their currencies...but that can't be done under a continent wide one currency system. At some point the Germans and the French are going to get tired of carrying the load, and how that plays out will be interesting.

As for the dire prediction that the US can't solve its problems....I'll bet when push comes to shove they will. It won't be pretty, but they will because they have to. And part of that fix will be to stop playing nice with the Chinese on their currency, and the massive trade imbalance it creates.

And something else to keep in perspective...despite all the doom and gloom, America's per capita debt was until the last year or so, on par with other major European countries.
« Last Edit: April 29, 2011, 17:35 by gwhitton »

velocicarpo

« Reply #28 on: April 29, 2011, 17:53 »
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While we are bashing the US dollar, lets do a little bashing of the Euro. I wouldn't be surprised if the Euro doesn't even exist in 5 years. Some prominent European economists are wondering the same thing, because ultimately Europe has to deal with the bipolar nature of its economic structure. On the one hand you have economies like Germany that are historically very strong, while on the other end you have economies like Greece, Portugal, Spain and Ireland that are in the toilet, and asking for hand outs. In the past this disparity was managed by the poorer countries devaluing their currencies...but that can't be done under a continent wide one currency system. At some point the Germans and the French are going to get tired of carrying the load, and how that plays out will be interesting.

As for the dire prediction that the US can't solve its problems....I'll bet when push comes to shove they will. It won't be pretty, but they will because they have to. And part of that fix will be to stop playing nice with the Chinese on their currency, and the massive trade imbalance it creates.

And something else to keep in perspective...despite all the doom and gloom, America's per capita debt was until the last year or so, on par with other major European countries.

True. The Euro has its Problems too, which shows that the current system of Fiat lux money is not working. BUUUT....as you already said europe is sort of bipolar. You have the stable north (exept Ireland) and the unstable south. But if you ahve a look at the USA they more or less equal to states like Greece and have NO backup like Germany or France to hold them up. So the risk for the USA is definitly higher.

« Reply #29 on: April 29, 2011, 18:07 »
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While we are bashing the US dollar, lets do a little bashing of the Euro. I wouldn't be surprised if the Euro doesn't even exist in 5 years. Some prominent European economists are wondering the same thing, because ultimately Europe has to deal with the bipolar nature of its economic structure. On the one hand you have economies like Germany that are historically very strong, while on the other end you have economies like Greece, Portugal, Spain and Ireland that are in the toilet, and asking for hand outs. In the past this disparity was managed by the poorer countries devaluing their currencies...but that can't be done under a continent wide one currency system. At some point the Germans and the French are going to get tired of carrying the load, and how that plays out will be interesting.

As for the dire prediction that the US can't solve its problems....I'll bet when push comes to shove they will. It won't be pretty, but they will because they have to. And part of that fix will be to stop playing nice with the Chinese on their currency, and the massive trade imbalance it creates.

And something else to keep in perspective...despite all the doom and gloom, America's per capita debt was until the last year or so, on par with other major European countries.

True. The Euro has its Problems too, which shows that the current system of Fiat lux money is not working. BUUUT....as you already said europe is sort of bipolar. You have the stable north (exept Ireland) and the unstable south. But if you ahve a look at the USA they more or less equal to states like Greece and have NO backup like Germany or France to hold them up. So the risk for the USA is definitly higher.

I think a fairer way of looking at the US is at the overall assets of its people. Is the US really broke when it produces consistently a $14 trillion dollar economy every year? I would say not. The reality is we are a lot like Greece, which if you look under the covers isn't broke either.  There are just alot of people who don't want to pay for the government services they demand each year from their politicians. For most of the 100 years America had much higher taxes than we do right now and we did just fine. In fact some of our greatest growth occurred with the upper tax bracket at 90%+ .

The minute we learn to live within our means and quite whining about a paltry tax rate in comparison to just about anywhere else....the better off we'll be.

« Reply #30 on: April 29, 2011, 18:32 »
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Just had a look at a 5 year chart of the Euro v USD and it's not near its highs.  Will be interesting to see if the USD bounces back or if it continues to slide and the Euro does make new highs.  GBP is falling against the Euro.

http://uk.finance.yahoo.com/q/bc?s=EURUSD=X&t=5y&l=on&z=l&q=l&c=

« Reply #31 on: April 29, 2011, 18:43 »
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But if you put line between tops and line between bottoms you' ll see downtrend in long term...

« Reply #32 on: April 29, 2011, 20:38 »
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Well, Brazilian Real is very valued at the moment, what is actually bad for a good part of our economy, but the fact is that money is flowing in.

I look at hotel prices in Euros for my trip and they sound expensive to me until I convert them to Reais.

Not that I believe any stock site will start using Reais as a standard currency.  ;D

« Reply #33 on: April 30, 2011, 02:56 »
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Its the National Budget Deficit and not the trade deficit that is weakening the dollar in my view. After 30 years of Globalization, the large corporations have become trans-national with no national allegiance,  their lobbyists have bought enough politicians to rig the tax codes so they pay no real taxes, . . . . . Example: GE  had immense profits last year and payed no US taxes, in fact they claimed a rebate of $2 billion .  Exxon, which has become the most profitable company in history with immense profits,  pays not taxes . . .  they also got $150 million back from American tax payers.  That and the fact that the top 5%  of US tax payers have a effective tax rate of 16.5% says to to me that those Lobbyists have done their job over the years . . . .  the US is now a Oligarchy . . . . . .  their job now is to remove the rest of the New Deal, which the Republicans have just voted 100% to do in their latest budget in the House.

Sorry to non-Americans for this rant, but this is a family fight that does in the longer run effect everyone.
« Last Edit: April 30, 2011, 03:06 by etienjones »

« Reply #34 on: April 30, 2011, 02:58 »
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dup message, sorry
« Last Edit: April 30, 2011, 03:00 by etienjones »

« Reply #35 on: April 30, 2011, 04:00 »
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So, buyers get 20% or more less prices in last year only because falling of Dollar...

« Reply #36 on: April 30, 2011, 04:53 »
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So, buyers get 20% or more less prices in last year only because falling of Dollar...

1. Only NON US buyers. US buyers are most of the market...
2. 20% is quite a lot. in most contries the drop was a less steep.

Reef

  • astonmars.com
« Reply #37 on: April 30, 2011, 05:12 »
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1. Only NON US buyers. US buyers are most of the market...
2. 20% is quite a lot. in most contries the drop was a less steep.

1. Not sure about US buyers being most of the market
2. close to 50% in Australia

« Reply #38 on: April 30, 2011, 07:03 »
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1. Only NON US buyers. US buyers are most of the market...
2. 20% is quite a lot. in most contries the drop was a less steep.


1. Not sure about US buyers being most of the market
2. close to 50% in Australia


1. I am.
2. Not true. you can have a look here:
http://www.oanda.com/currency/historical-rates/

« Reply #39 on: April 30, 2011, 07:15 »
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So, buyers get 20% or more less prices in last year only because falling of Dollar...

1. Only NON US buyers. US buyers are most of the market...
2. 20% is quite a lot. in most contries the drop was a less steep.

Thats not my case, my buyers arent in the US and thanks god if they were I would have another big 10% cut! I have like 10% income from USA buyers, maybe less
« Last Edit: April 30, 2011, 07:19 by luissantos84 »

« Reply #40 on: April 30, 2011, 07:42 »
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So, buyers get 20% or more less prices in last year only because falling of Dollar...

1. Only NON US buyers. US buyers are most of the market...
2. 20% is quite a lot. in most contries the drop was a less steep.

Thats not my case, my buyers arent in the US and thanks god if they were I would have another big 10% cut! I have like 10% income from USA buyers, maybe less

Being on so many sites how would you know this ?
I sell only on IS and more then 50% of purchases are from the USA.  I know other sites have a stronger presentce in the european market, but I am sure that most of IS buyers come from the US.  The US is the biggest market in general for IP.

Not that at matters really, I don't really care from where my buyers are, a long as they keep on buying :)

microstockphoto.co.uk

« Reply #41 on: April 30, 2011, 07:50 »
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Less than 10% of my Shutterstock sales are from the USA.
But I have many pictures of European cities in my port.
Percentage is slightly higher (about 30%) on Veer.
« Last Edit: April 30, 2011, 07:52 by microstockphoto.co.uk »

« Reply #42 on: April 30, 2011, 08:11 »
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So, buyers get 20% or more less prices in last year only because falling of Dollar...

1. Only NON US buyers. US buyers are most of the market...
2. 20% is quite a lot. in most contries the drop was a less steep.

Thats not my case, my buyers arent in the US and thanks god if they were I would have another big 10% cut! I have like 10% income from USA buyers, maybe less

Being on so many sites how would you know this ?
I sell only on IS and more then 50% of purchases are from the USA.  I know other sites have a stronger presentce in the european market, but I am sure that most of IS buyers come from the US.  The US is the biggest market in general for IP.

Not that at matters really, I don't really care from where my buyers are, a long as they keep on buying :)

Sorry but I if I say I know I guess I really know, NO? almost IS is the only agency not taking taxes from USA sales

« Reply #43 on: April 30, 2011, 08:29 »
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Less than 10% of my Shutterstock sales are from the USA.
But I have many pictures of European cities in my port.
Percentage is slightly higher (about 30%) on Veer.

Me too!

Even without lot of landscapes of Europe...

« Reply #44 on: April 30, 2011, 08:54 »
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Of course it depends from site to site, but what I see in FT is a very small % of US-buyers (easy to see due to the tax cut). Also in DT, but I can only see the tax cut clearly in subs, the % of US buyers is small. They are however the majority in FP, almost all my sales there are being taxed.

« Reply #45 on: April 30, 2011, 09:04 »
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Its the National Budget Deficit and not the trade deficit that is weakening the dollar in my view...".

What evidence do you base that on?  Over the last 5 years the dollar has been higher and it has been lower against most international currencies (exception might be the Swiss Franc).  If there was any great fear of the dollar dropping badly interest rates should be going up but 10 year TBill is about as low as it has ever been in the last 40 years and the 30 year Treasury is at 4.40%!  If people are willing to lend the U.S. money at that rate for 30 years they must have some confidence in the dollar.

fred

ShadySue

  • There is a crack in everything
« Reply #46 on: April 30, 2011, 09:18 »
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I sell only on IS and more then 50% of purchases are from the USA. 
Where did you get that figure? The last time I saw an official figure, which was ages ago, it was c40% from the US.

« Reply #47 on: April 30, 2011, 09:25 »
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I sell only on IS and more then 50% of purchases are from the USA. 
Where did you get that figure? The last time I saw an official figure, which was ages ago, it was c40% from the US.

OK just don't shoot me for getting it wrong by 10% ...
I know this by the hours in which I recieve sales.
I must say that ever since the last best match tweak the ex-US sales have gone up !

« Reply #48 on: April 30, 2011, 10:01 »
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Its the National Budget Deficit and not the trade deficit that is weakening the dollar in my view...".

What evidence do you base that on?  Over the last 5 years the dollar has been higher and it has been lower against most international currencies (exception might be the Swiss Franc).  If there was any great fear of the dollar dropping badly interest rates should be going up but 10 year TBill is about as low as it has ever been in the last 40 years and the 30 year Treasury is at 4.40%!  If people are willing to lend the U.S. money at that rate for 30 years they must have some confidence in the dollar.

fred


There are doubts about the health of the country's economy even though Geithner as said We will never seek to weaken our currency as a tool to gain competitive advantage or to grow the economy. . . . . . .  maybe.

S&P has recently suggested that that the United States' AAA credit rating could be downgraded.

The second-largest holder of Treasury debt, China, has stepped up rhetoric hinting that they might diversify their massive $3 trillion of currency reserves away from U.S. dollars.

Alan Greenspan has even attributed the dollar's weakness to large Federal budget deficits.

And who is buying all those government bonds.  The Fed has bought up hundreds of billions of dollars of  long-term U.S. Treasuries (QE2)

velocicarpo

« Reply #49 on: April 30, 2011, 10:42 »
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Well, Brazilian Real is very valued at the moment, what is actually bad for a good part of our economy, but the fact is that money is flowing in.

I look at hotel prices in Euros for my trip and they sound expensive to me until I convert them to Reais.

Not that I believe any stock site will start using Reais as a standard currency.  ;D

Yes! After living a couple of month in Sao Paulo I was fascinated with the power of Brazil. The real is very strong and will continue to grow. I actually thought about starting a real based internet business in this time. Nowadays I think I rather switch to euros.

velocicarpo

« Reply #50 on: April 30, 2011, 10:52 »
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I think it is not about the States vs the rest of the world. The degrading value of many Currencies including Dollar and Euro is barely deniable. It is more about what we could do about.

The inflation of the dollar based agencies wouldn`t hit us so hard if they would raise our commissions / prices accordingly. On the other hand it could be useful for the companies to simply switch to the euro. As someone else said, less then 10% of my buyers are from the US. Many people from around the world may not even notice the switch to euro since 1 buck is sort of 1 buck heheh, but the income would increase a lot.

« Reply #51 on: April 30, 2011, 12:08 »
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Its the National Budget Deficit and not the trade deficit that is weakening the dollar in my view...".

What evidence do you base that on?  Over the last 5 years the dollar has been higher and it has been lower against most international currencies (exception might be the Swiss Franc).  If there was any great fear of the dollar dropping badly interest rates should be going up but 10 year TBill is about as low as it has ever been in the last 40 years and the 30 year Treasury is at 4.40%!  If people are willing to lend the U.S. money at that rate for 30 years they must have some confidence in the dollar.

fred

There are doubts about the health of the country's economy even though Geithner as said We will never seek to weaken our currency as a tool to gain competitive advantage or to grow the economy. . . . . . .  maybe.

S&P has recently suggested that that the United States' AAA credit rating could be downgraded.

The second-largest holder of Treasury debt, China, has stepped up rhetoric hinting that they might diversify their massive $3 trillion of currency reserves away from U.S. dollars.

Alan Greenspan has even attributed the dollar's weakness to large Federal budget deficits.

And who is buying all those government bonds.  The Fed has bought up hundreds of billions of dollars of  long-term U.S. Treasuries (QE2)

I am not asking for more opinion.  I am asking for more evidence.  Your sources of opinion are even very dubious.   Just look at the securities S&P was rating as AAA in the 2008 (AIG, Lehman Bros.,  etc.) and taking Alan Greenspan's investment advice is like taking Liz Taylor's advice for a long marriage.  He denied there was a housing boom until late 2008 and promoted 30 years of deregulation that led the the financial crash.  Not a good source. 

The Chinese are double dubious.  They need a strong dollar to both keep up the value of their TBill holdings and keep their currency undervalued to maintain the unbalanced trade situation.  They have no reason to reverse either of these policies but should they change their mind it would be more beneficial to the U.S. economy.

As far as the FED purchases go, they have made it clear that they will be stopping soon so if there were great expectations of that causing an appreciable upward bounce in TBill rates there would be a lot of selling now.  That just is not happening so the evidence is that QE2 it hasn't been very effective.

I am not saying the dollar is going up or down all I am saying is that the evidence I know of shows a great deal of confidence in the long run stability of the dollar.

fred

« Reply #52 on: April 30, 2011, 12:16 »
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Oh and while the Japanese budget deficit has climbed to 200% of GDP the Yen has only become stronger.

fred

« Reply #53 on: April 30, 2011, 12:34 »
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The second-largest holder of Treasury debt, China ...


The second largest holder of US debt is the US Social Security Trust Fund (appx 18%). The largest holder of US debt is US institutions and ultimately the US public (appx 42%). See here for a chart etc.

Appx $4.5 trillion of the debt is non US owned. Meaning that appx 2/3 of US debt is held by the US itself and its citizens.

China holds $1.154 trillion of US debt according to this Reuters report from 24th April 2011.

According to the same report the total debt is $14.3 trillion. China therefore holds only appx 8% of the total debt.

velocicarpo

« Reply #54 on: April 30, 2011, 13:36 »
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The second-largest holder of Treasury debt, China ...


The second largest holder of US debt is the US Social Security Trust Fund (appx 18%). The largest holder of US debt is US institutions and ultimately the US public (appx 42%). See here for a chart etc.

Appx $4.5 trillion of the debt is non US owned. Meaning that appx 2/3 of US debt is held by the US itself and its citizens.

China holds $1.154 trillion of US debt according to this Reuters report from 24th April 2011.

According to the same report the total debt is $14.3 trillion. China therefore holds only appx 8% of the total debt.


Only 8% ! I thought it was much more since the markets are soooo hysteric about it ...

WarrenPrice

« Reply #55 on: April 30, 2011, 14:54 »
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Between Military Retirement and Social Security (my entitlements), I manage to fill my truck with diesel fuel.   :P

Oh... I'm starting to see some microstock subsidies.   ::)
What else can we bash today.  Religion hasn't been attacked lately.   ;D

« Reply #56 on: April 30, 2011, 16:20 »
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Some good info in this thread about how the weakening dollar affects us, the microstock suppliers. But how does it affect the non-US microstrock buyers?

I wonder for example: If the dollar starts to get stronger against the euro, how would that affect SS subscription sales in Germany? How would PPD sales at DT be affected if the dollar weakens against the Braziliain currency, for example? Or would such currency fluctuations have no effect?

« Reply #57 on: April 30, 2011, 17:16 »
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Some good info in this thread about how the weakening dollar affects us, the microstock suppliers. But how does it affect the non-US microstrock buyers?

I wonder for example: If the dollar starts to get stronger against the euro, how would that affect Shutterstock subscription sales in Germany? How would PPD sales at Dreamstime be affected if the dollar weakens against the Braziliain currency, for example? Or would such currency fluctuations have no effect?

Sure it would affect it. basic micro economy rule, price goes up, demand goes down. the low $$ rate is good for buyers and bad for sellers (if both are ex-US).

« Reply #58 on: May 01, 2011, 10:43 »
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The Dollar will crash. No doubt. Even if you live in the US you will have to deal with a high inflation.
Personally I cannot understand why the stock companies stay in the US. IRS Problem, a weak Dollar etc.

The US is already seeing inflation.  Gas, food, medical, clothing and utility prices are rising and many people are still out of work thus losing their homes to foreclosure.  I think you are right the dollar will continue to weaken.

« Reply #59 on: May 01, 2011, 11:30 »
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The dollar will go down, you better change your currencies right now.

« Reply #60 on: May 02, 2011, 09:45 »
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The dollar will go down, you better change your currencies right now.

Actually, if you are really confident that the dollar is going down you should borrow dollars and convert them now and pay them back with the weaker dollars you get from your sales later.  You have to borrow at low interest rates of course.

c h e e r s
fred
« Last Edit: May 02, 2011, 09:47 by Fred »

WarrenPrice

« Reply #61 on: May 05, 2011, 17:22 »
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« Reply #62 on: May 06, 2011, 14:17 »
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The dollar will go down, you better change your currencies right now.

Actually, if you are really confident that the dollar is going down you should borrow dollars and convert them now and pay them back with the weaker dollars you get from your sales later.  You have to borrow at low interest rates of course.

c h e e r s
fred

True. I thought about this many times. Without doubt it will devalue. Even in a stable environment...

« Reply #63 on: May 07, 2011, 06:37 »
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Leave your money on Moneybookers or on Paypal if US dollar is your account currency and wait for a better time...
Probably next week will be better...

So, what was I told week before? Dollar goes up!

« Reply #64 on: May 07, 2011, 07:22 »
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The dollar will go down, you better change your currencies right now.


Actually, if you are really confident that the dollar is going down you should borrow dollars and convert them now and pay them back with the weaker dollars you get from your sales later.  You have to borrow at low interest rates of course.


True. I thought about this many times. Without doubt it will devalue. Even in a stable environment...


The problem is which currency to buy.  The Euro looks very shaky to me.  They have to do something about Ireland, Greece, Spain and Portugal.  Germany needs to keep the Euro low to maintain their exports.   You  might try the Renminbi but who knows that the Chinese government will do to keep it low.  The Yen has always been strong but with Japan's latest natural - and unnatural disasters - what is going to happen now? You also need to keep in mind the historical perspective.  The Real Effective Exchange Rate - inflation adjusted exchange rate measured against a basket of trade weighted currencies - of the dollar is right now about where it was in 1979 (see: http://krugman.blogs.nytimes.com/2011/05/04/falling-dollar-phobia/).  It could get stronger.  It did then.

Good recent article on the Euro problems: http://www.nytimes.com/2011/04/17/business/17view.html?_r=1

You pays your money you takes your chances!

c h e e r s
fred
« Last Edit: May 07, 2011, 07:46 by Fred »

« Reply #65 on: May 07, 2011, 08:17 »
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After large budget deficits in the Reagen and  Bush One years President Clinton not only balanced the federal budget but handed off projected surpluses well into the future.  Of course Bush 2 said hey, look at all this extra money, lets have a tax reduction for the very rich . . .  and while we are at it lets have two wars off budget

The Euro was initially pegged at $1.17 to 1 Euro (2001?) under the belief that sanity would continue in America.  Just look at the graph and you will see what bad politics can produce.
« Last Edit: May 07, 2011, 08:21 by etienjones »

« Reply #66 on: May 07, 2011, 08:24 »
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Bitcoin looks like a very interesting currency option currently. Unless govts decide to try to do something to stop it.

jbarber873

« Reply #67 on: May 07, 2011, 08:28 »
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     Currency trading is a very difficult game to play. First of all,because  currency moves are very small, even on a "big" day, to make any money, you have to be leveraged, which means if a trade goes against you, your losses can be magnified. Second, you are playing against huge trading desks at banks and brokerage house , and hedge funds, with the ability to move in seconds on a massive scale. And third, there is no such thing as insider trading in Forex, any knowledge a company has about a client move can be used for profit. You're in a market that does not always, or even often, move fundamentally. George Soros made a ton of money betting against the pound, but he took losses for a long time , and the British government intervened heavily against him before he finally won the bet. Foreign exchange is not the place for a retail investor. If you really plan to try trading currency, read a book by Marc Chandler, head of Forex at Brown Brothers Harriman, called "Making Sense of the Dollar". You'll think twice about trading currencies.

« Reply #68 on: May 07, 2011, 09:13 »
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The US dollar follow the country debt, but in reverse. It goes down when the debt get higher. 

The actual raise is only a temporary one, due to the oil price variation.

« Reply #69 on: May 07, 2011, 17:01 »
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At one point (in 2008) I got Au$1.42 per U$1, now I am getting $0.90.
It is great for buying gear out of the states, but of course having taken a pay cut (even compared to earlier this year) I don't have any extra cash to buying gear with :)
Someone on the radio (dont know who they were a financial analyst, said about 2 weeks ago they wouldn't be surprised to see au$1 = US$1.5, so I will get around $0.66 if becomes true) :(

« Reply #70 on: May 08, 2011, 01:20 »
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As long as we keep printing money, we will kill our currency, and a lot of our exported inflation is coming back to the US.... the dollar will die, or we will have 30% interest rates - either way the US hasn't even begun to feel the economic pain waiting for it.


 

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