NOW will you lemmings get IT??

[kommutrdog]

http://news.moneycentral.msn.com/ticker/article.aspx?Feed=AP&Date=20071107&ID=7781030&Symbol=UAUA

For those who occasionally venture into the more interesting 'non aviation' section of this board, the topic of our currency devaluation via the Federal Reserve has been a hot topic.

Lower rates = higher oil prices & foreign capital leaving our stock markets.

A lower Dollar WILL affect you. Stop pretending that all is well, Pollyanna-style. Get off your saddle and write your elected officials to tell them to knock it off with the rate cuts. Sure it will hurt. We will have a recession and some banks will fail, but you cannot have a sound economy with a Third World Currency.

(Ps I fully expect this thread to be moved by the moderator, because after all, since when does the talk of United possibly grounding 100 airplanes belong in the 'Majors' section?)

 

[UAL-GSO]

FEAR tactics, scare the peasants in to submission, etc... Take anything that comes out of a UAL exec's mouth with a very large grain of salt (and some antibiotics).

 

[Ex737Driver]

AHHHHHHHHHHH, the sky is falling!!!!!!! I sorry, my bad. It's just our ticket prices and our (insert your airine here) employees salaries, benefits, and retirements.

 

[kommutrdog]

FEAR tactics, scare the peasants in to submission, etc... Take anything that comes out of a UAL exec's mouth with a very large grain of salt (and some antibiotics).

I completely agree with that angle of your post, however, $98 oil and euro = $1.47+ is not good for the consumer.

Labor will give management the finger this time around, I believe, and the costs will be passed onto the pax...however, pax will not book as much. That trip to Grandma's in Fort Myers is gonna be awfully expensive come Xmas time if this keeps up.

Thanks to our visionaries at the Fed, the dollar is going into the toilet.

You cannot have a sound economy with a Third World currency.

 

[HalinTexas]

Get off your saddle and write your elected officials to tell them to knock it off with the rate cuts.

Elected officials don't set the fed rates. Thank God.

 

[JetFumes]

Correct me if I'm wrong. But haven't exports increased to the tune of about 16% as a result of the weaker dollar? I thought that this trims the trade deficit and can actually help our economy. Am I wrong?

 

[Hutchman]

Correct me if I'm wrong. But haven't exports increased to the tune of about 16% as a result of the weaker dollar? I thought that this trims the trade deficit and can actually help our economy. Am I wrong?

The dollar is off 40% and our exports are up 16%. Not a good balance. Guess what is the biggest export from the U.S. You got it, Boeing(or CAT). Back out Boeing and exports are not up. Boeing is on a tare right now due to the weak Dollar. Why do you think Airbus is in the crapper? The Euro is high. No one wants to buy overpriced aircraft. Unless you got a 40% raise over the past few years you now make less money. Last time I looked I took a 30% paycut plus the loss of the dollar equates to about a 50% paycut over the years. This is hardly anything to be happy about.

 

[PCL_128]

Unless you got a 40% raise over the past few years you now make less money.

I don't know why people keep saying this. It simply isn't true. The only thing that matters to the average American is the price they pay for goods and services in this country. So far, the weakened dollar hasn't caused an increase in prices for things purchased in America by the average consumer. This can be seen by looking at the CPI stats. The increase in the CPI for the past year has only been 2.8%, which is actually below average for the past century. Unless you're traveling internationally a lot, then the weakened dollar hasn't really affected the average American yet.

 

[Hutchman]

I don't know why people keep saying this. It simply isn't true. The only thing that matters to the average American is the price they pay for goods and services in this country. So far, the weakened dollar hasn't caused an increase in prices for things purchased in America by the average consumer. This can be seen by looking at the CPI stats. The increase in the CPI for the past year has only been 2.8%, which is actually below average for the past century. Unless you're traveling internationally a lot, then the weakened dollar hasn't really affected the average American yet.

There is one good I buy. It runs my car and is high due to the weakness of the dollar. I also eat food. Grain prices are way up thanks to the ethanol scam. I also travel abroad due to work. It effects me. How much was oil when we had a strong dollar? The answer is.................$10 a barrel. I know there are many other factors (China) for the increase, but if the dollar had any value oil would be less. Consumers are running out of credit and it should get very interesting within a year.

 

[PCL_128]

Yes, and the price of oil/gas and food is included in the CPI figure which has only gone up 2.8% in the past year, which again, is still under the average.

 

[CitationLover]

Ron Paul has a theory on this.

http://youtube.com/watch?v=8-W-ef7GmT4

 

[Wiggums]

PCL_128 trusts our government and Federal reserves policy implicitly. For every one else see this article about the CPI at shadowstats.com.

 

[Hutchman]

Yes, and the price of oil/gas and food is included in the CPI figure which has only gone up 2.8% in the past year, which again, is still under the average.

This is strait off the Gov. CPI website.

"...The index for energy, which advanced at annual rates of 22.9 and 32.9 percent in the
first two quarters, declined at a 14.8 percent rate in the third quarter of 2007. Thus far this year, energy costs
have risen at an 11.7 percent SAAR after increasing 2.9 percent in all of 2006. In the first nine months of 2007,
petroleum-based energy costs (energy commodities) advanced at a 20.6 percent rate and charges for energy
services (gas and electricity) increased at a 1.3 percent rate. The food index rose at a 5.7 percent SAAR in the
first nine months of 2007 after advancing 2.1 percent in all of 2006. Grocery store food prices increased at a
6.7 percent annual rate in the first nine months of 2007, reflecting acceleration over the last year in each of the
six major groups. These increases ranged from annual rates of 4.0 percent in the index for other food at home
to 17.7 percent in the index for dairy products."

 

[PCL_128]

This is strait off the Gov. CPI website.

"...The index for energy, which advanced at annual rates of 22.9 and 32.9 percent in the
first two quarters, declined at a 14.8 percent rate in the third quarter of 2007. Thus far this year, energy costs
have risen at an 11.7 percent SAAR after increasing 2.9 percent in all of 2006. In the first nine months of 2007,
petroleum-based energy costs (energy commodities) advanced at a 20.6 percent rate and charges for energy
services (gas and electricity) increased at a 1.3 percent rate. The food index rose at a 5.7 percent SAAR in the
first nine months of 2007 after advancing 2.1 percent in all of 2006. Grocery store food prices increased at a
6.7 percent annual rate in the first nine months of 2007, reflecting acceleration over the last year in each of the
six major groups. These increases ranged from annual rates of 4.0 percent in the index for other food at home
to 17.7 percent in the index for dairy products."

Exactly, and all of that is calculated into the total CPI number, which again, is only 2.8% for the trailing 12 months. Big difference from the 40% loss of buying power that some of you guys are claiming we've experienced.

 

[Hutchman]

Exactly, and all of that is calculated into the total CPI number, which again, is only 2.8% for the trailing 12 months. Big difference from the 40% loss of buying power that some of you guys are claiming we've experienced.

Ok, you win. Fuel is only up 33% and anything to do with a grain(whether eaten by or made from) is up 17%. You are right, things are fine. The Canadian dollar is at a 50 year high on the US Dollar. Hey, don't you see the 800lb gorilla in the room?