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Discussion Starter #1
The dollar reached an all time low today. 1 U.S. dollar = .71 Euro. Euro ammo prices gonna get even worse?
 

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Since the dollar is the more stable and preferred currency among the eastern block, and the Euro is known to be artificially inflated and is a new less stable currency, I don't think it really matters at this time.
 

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Who else can/will buy surplus ammo? I guess with the high euro it sucks to be a European purveyor of surplus ammo.

SlimTim
 

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Discussion Starter #4
Bottom line, it now takes $1.29 U.S. to buy $1.00 worth of European goods. What used to be purchase for $100.00 will now cost the importer $129.00 in currancy exchange.

It can't be good.
 

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For the sake of making a legitimate sale the talking heads are often ignored.

You will find that when dealing with the eastern block the dollar rules regardless.
 

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A friend just got back from a vacation through Italy and France. She said they were the only American tourists they saw. A coke costs $7, a hotel room $450, dinner for 3 over $100. Lots of Japenese tourists, but no Americans.
 

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Bottom line, it now takes $1.29 U.S. to buy $1.00 worth of European goods. What used to be purchase for $100.00 will now cost the importer $129.00 in currancy exchange.

It can't be good.

The point I was trying to make -- If Americanski's are the only ones buying, they will take our woefully valued dollars just fine, thank you.

SlimTim
 

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The Americans may not be the only one buying. For example, there are the chinese.
 

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Are the Chinese outsourcing their small arms com-bloc caliber ammo ? I don't know for fact , but assumed they manufactured in house .
They surely aren't looking for surplus 8x57 , .303 or even new 9x19 , 223 Rem or 45 acp .
 

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CAS Shooters beware....

This is the big reason I just picked up an 1858 Remington C&B repro. They are not going to get cheaper, and the current price is around $20-$30 more than a year ago.
 

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Discussion Starter #11 (Edited)
The point I was trying to make -- If Americanski's are the only ones buying, they will take our woefully valued dollars just fine, thank you.

SlimTim
Let's turn things around. If someone from Europe came here to buy from an American and that European's money when converted to U.S. dollars was less than what the American was used to being paid, the European would have to fork out more to sustain the same value for the goods. Why would the businessman accept less. Also why do you assume Americans are the only ones buying ammo? China comes to mind as well as various 3rd world countries.

Also, you don't think these sellers would do anything to grab more American dollars and let the lesser value of the dollar go unnoticed. It's business.

Caterpillar tractor, GM and such expect higher sales/exports this year because their product is cheaper to purchase than Japanese products. Inversely true with imported goods into the U.S.A., wines, etc., anything European expect to pay more for.

We don't live in a Chuck Norris movie where everything falls in the American's favor by groveling combloc countrymen.

Today's at another low. Today it takes $1.41 U.S. to = 1 Euro dollar.

So if someone in Europe wants to move $100,000.00 worth of goods, he's going to be dumb enough to not realize it's now worth $141,000.00?
 

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I was at...

...a GSA auto auction yesterday (govt' auction). There were a lot of guys from India and Africa there who were bidding way over blue book on any compact truck there. From talking to a few I got the impression they just wanted to get rid of their dollars and get trucks to ship back home. I thought they were paying way too much and they thought they were stealing them! The Europeans have been doing that for years with high class american cars.
...A shrinking dollar is bad if you are buying from overseas, everything will cost more, but great if you are selling overseas, you get to charge more.
...Other than that I try not to predict the future too much, right now Iraq and the mortage problem is hurting the dollar, and the pound next. Anybody remember when Gordon Brown sold off half of Englands gold reserves in year 2001 at around 265 dollars an ounce? It's now at 740 dollars an ounce.
...End of speech.
 

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Let's turn things around. If someone from Europe came here to buy from an American and that European's money when converted to U.S. dollars was less than what the American was used to being paid, the European would have to fork out more to sustain the same value for the goods. Why would the businessman accept less. Also why do you assume Americans are the only ones buying ammo? China comes to mind as well as various 3rd world countries.
Again, if there are no other buyers than Americans, what's the seller of surplus to do? Eat the ammo?

I don't know that the US is the only market for surplus ammo, I am simply raising the question. I do know that the US has been the biggest market for old military bolt action rifles for years, not the only market, but by far the most significant market. So it raises the question: Who else is there buying surplus ammo?

Someone mentioned the Chinese, I doubt that seriously, unless they are buying it for component value.

SlimTim
 

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With the dollar collapsing could this be the beginning of a another 1929 Stock market crash?
 

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I don't think...

...the stock market will collapse. Things kind of steadied out last Friday and if the dollar does continue to drop in value it's more than likely that investors will put money INTO the market rather than keep it in cash. Nobody wants cash when the currency is falling, esp. while certain stocks are rising.
...What everybody is afraid of is the housing market falling and they wind up owing more than their home is worth, hence they can't sell and it's even worse if they can't make the payments which on many adjustable loans are set to rise.

...With ammo the point above by SlimTim is well taken. There just are not that many countries that can buy old military ammo anymore except some third world ones whose currency is on far more shakey grounds than ours! Around the world .308, .223, and 7.62X39 and 54r are in demand. 5.45X39 is still cheap because it's an internal Russian caliber and outside of Russia it's not in use by anybody, hence low demand coupled with high surplus stocks as the former Soviet states are switching to .223(5.56mm nato).
 

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I heard that the price of a barrel of oil just hit a new high in the $80+ range the other day. That'll show up at the pump eventually. We aren't out of the woods yet. Just keep those printing presses rolling at the Treasury.....
 

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Discussion Starter #17 (Edited)
...the stock market will collapse. Things kind of steadied out last Friday and if the dollar does continue to drop in value it's more than likely that investors will put money INTO the market rather than keep it in cash. Nobody wants cash when the currency is falling, esp. while certain stocks are rising.
...What everybody is afraid of is the housing market falling and they wind up owing more than their home is worth, hence they can't sell and it's even worse if they can't make the payments which on many adjustable loans are set to rise.

...With ammo the point above by SlimTim is well taken. There just are not that many countries that can buy old military ammo anymore except some third world ones whose currency is on far more shakey grounds than ours! Around the world .308, .223, and 7.62X39 and 54r are in demand. 5.45X39 is still cheap because it's an internal Russian caliber and outside of Russia it's not in use by anybody, hence low demand coupled with high surplus stocks as the former Soviet states are switching to .223(5.56mm nato).

The stock market collapsed before because you could buy stock 100% on margin. Basically buying stock on credit.It was all paper. Worthless. Now you can buy only 50% on margin. If the stock market collapsed it would be from foreign investors pulling out of American stocks to buy European stocks, but with American exports getting cheaper to buy, exports may actually stimulate the American economy so I doubt foreign invester would pull out.

The hunt for Osama in Iraq and making China's savings account fatter then ever buying cheap junk has now put this country's security at the whims of the foreign investors. Hopefully their not all of Osamas relatives doing the investing. You know, the ones America made rich. Wow, what a twist.

And there are more third world countries that can buy surplus ammo than new ammo.I wonder where Dafur buys their ammo to wipe out the villages? Or the warlords in Somalia, etc. I don't think ammo can be sent from here to there, but it certainly can be sent from Europe.
 

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You quoted me as saying "the stock market will collapse", I hope you saw my header that said "I don't think..........(then)...... the stock market will collapse." Bad stocks will fail and good stocks will prosper, but the market is not going to collapse, if anything with inflation and nowhere else to put one's money it most likely will go up.

Dafur and it's warloards are getting their ammo from China, who also has a few troops there and is a main trader with Sudan. This is because China is the main buyer of Oil from the Sudan.
 

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Discussion Starter #19
You quoted me as saying "the stock market will collapse", I hope you saw my header that said "I don't think..........(then)...... the stock market will collapse." Bad stocks will fail and good stocks will prosper, but the market is not going to collapse, if anything with inflation and nowhere else to put one's money it most likely will go up.

Dafur and it's warloards are getting their ammo from China, who also has a few troops there and is a main trader with Sudan. This is because China is the main buyer of Oil from the Sudan.

Thanks for the info. on the China connection.

With inflation, investing in precious metals and foreign currency is the usual protection. Stocks are betting things will turn around ( buying in low on the cycle)
 

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I remember several years back when the Euro took a hit and was worth about 2 to 1 in favor of the dollar. Bought a ton of old war photos and Makarov goodies. I guess now is a good time to sell them back to Europe!
 
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