THE LOWER DOLLAR IS NOT BAD FOR THE USA

NYTIMES:

In Europe, there was at least one call for a Continentwide effort to reverse the course of the euro, which is used as the official currency in 13 countries. “Let’s say that it’s a change in level that concerns all of us Europeans, and it’s clearly a point we must address together among Europeans,” the French finance minister, Christine Lagarde, said during a trip to China, according to Reuters.

Evidence is starting to emerge that the euro’s strength is chipping away at sales.

... In the American Midwest, manufacturers say they are seeing more business, in part, because the weaker dollar has made them more competitive on the world market.

Kendig Kneen, chief executive of Al-Jon Manufacturing in Ottumwa, Iowa, said his scrap recycling and waste management equipment business had been growing up to 30 percent annually and that he had expanded his payroll to 150 from 100 workers a year ago. He estimates that about half the growth is a result of the weaker dollar, with the rest coming from stronger global demand for scrap recycling.

• THEY WILL SELL LESS; WE WILL SELL MORE.
• THAT'S GOOD FOR US.
• US COMPANIES WILL AGGRESSIVELY EXPLOIT THIS TEMPORARY COMPETITIVE ADVANTAGE.
• BEST BUSINESSES ARE NOT BUILT ON CURRENCY EXCHANGE RATES, BUT THEY CAN EXPLOIT IT, AND OURS WILL.

BTW: DESPITE THE LEFT'S ATTEMPT TO PORTRAY THE US ECONOMY AS LOUSY, THE STOCK MARKET IS NEARING IT'S ALL-TIME HIGH.

Update: BBC: Jobs fears as euro gets stronger

Money changer exchanges euros for dollars More cuts may have to be made at Airbus if the euro continues to remain strong against the dollar, an executive at the European planemaker has warned.

Chief operating officer Fabrice Bregier told French radio station BFM a further 1bn euros may need to be added to a savings plan based on a $1.35 euro.

On Friday the euro hit a fresh record high against the dollar of $1.4120.

Airbus may also have to buy more goods in the dollar zone - where it currently buys about half its supplies, he added.

Buying more goods in the dollar zone would help lower costs as it would mean cheaper prices.

"If the euro remains durably at $1.45, that would mean we had to find one billion euros in additional savings under Power 8 [restructuring plan]," he told the French station.

"Our reply to a strong euro is, first to be more competitive, second to buy more in the dollar zone," he added.

The weak dollar is good for USA exporters and hurts USA importers.