[Mikej21]

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

 

[Mikej21]

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.

 

[Mikej21]

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?

 

[Mikej21]

...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.

 

[Mikej21]

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)