Welcome to Flightinfo.com

  • Register now and join the discussion
  • Friendliest aviation Ccmmunity on the web
  • Modern site for PC's, Phones, Tablets - no 3rd party apps required
  • Ask questions, help others, promote aviation
  • Share the passion for aviation
  • Invite everyone to Flightinfo.com and let's have fun

Regional FOs: Check out NetJets

Welcome to Flightinfo.com

  • Register now and join the discussion
  • Modern secure site, no 3rd party apps required
  • Invite your friends
  • Share the passion of aviation
  • Friendliest aviation community on the web
Register   Log in
If we were buying milk from the Canadians, British, or French, then the slide of the US dollar would matter to you at the supermarket. However, since we pay for milk in US dollars and the farmer and the supermarket have production and distribution costs that I would imagine are all paid in US dollars, any slide of our currency against any other currency really don't matter. Now, if you're a guy wanting to buy an Airbus corporate 319 in US dollars so you have a nice place to drink your milk, that's a different story!
 
You're not thinking on a global scale, which is how our economy now works. The sliding dollar affects even products that are made entirely in America. The devaluation of the dollar drives up the price of oil for us, since oil is mostly imported and priced globally based on the dollar. The oil is used to make plastic milk cartons, the trucking companies that move the milk around the country pass on their higher gas prices to the supermarket, who then passes it on to the consumer, etc....
 
ualdriver said:
If we were buying milk from the Canadians, British, or French, then the slide of the US dollar would matter to you at the supermarket. However, since we pay for milk in US dollars and the farmer and the supermarket have production and distribution costs that I would imagine are all paid in US dollars, any slide of our currency against any other currency really don't matter. Now, if you're a guy wanting to buy an Airbus corporate 319 in US dollars so you have a nice place to drink your milk, that's a different story!
Click to expand...

Are you aware that the US exports more grain than it uses? And now that the dollar is below most major world currencies, the farmers can get more money selling it overseas than domestically. This coupled with the rising energy prices is why food costs have skyrocketed.

It's starting to look like we're already on the precipice of another recession. Not a good time to start over a a new airline.
 
Fo's????

All the guys from regionals in my new hire class were 6-8 year captains. Funny how this thread is singling out the FO's.

....and now back to ECON 101
 
Last edited:
He-he. What percentage of the cost of the gallon of milk is due to transportation and the plastic container? If they're feeding the cows imported grain, then it must be cheaper than grain they can obtain domestically. Further, if the dollar is weak vs. other currencies, and I was a farmer in the U.S. with a crop to export in competition with a Canadian farmer, I'd be pretty happy about a weak dollar. A weak dollar is not all bad either, especially if your costs are largely denominated in dollars and you're an exporter!
 
ualdriver said:
He-he. What percentage of the cost of the gallon of milk is due to transportation and the plastic container?
Click to expand...

That's not really the question. The question is how much of a percentage of the price was the diesel fuel used to transport that milk from the farm to the dairy to the store. Most of the milk in this country comes from the upper Midwest, the Northeast, and California. I'd say quite a bit if you live far from one of these areas,

ualdriver said:
If they're feeding the cows imported grain, then it must be cheaper than grain they can obtain domestically.
Click to expand...

No, they're feeding the cows expensive domestic grain The price of that grain is driven higher because it is being sold higher abroad. You're not considering that global supply and demand sets the price at the Chicago Stock Exchange. It's not just about the USA anymore. Foreign competition for resources is driving our domestic prices up on everything. The weak dollar reduces our buying power in the global market.

ualdriver said:
Further, if the dollar is weak vs. other currencies, and I was a farmer in the U.S. with a crop to export in competition with a Canadian farmer, I'd be pretty happy about a weak dollar.
Click to expand...

We are the #1 exporter of grain. Every other country except Ukraine pales in comparison. Yes I'm sure the farmers ARE happy. They are selling it on the exchange for a lot more than they can domestically.

ualdriver said:
A weak dollar is not all bad either, especially if your costs are largely denominated in dollars and you're an exporter!
Click to expand...

Huh? Do you understand the basic economic principle of supply and demand?

All commodities are traded internationally. There is a global price to meet because demand is now global. When the dollar is weak, our buying power is reduced, so it takes more dollars to buy everything. That's inflation.

While the weak dollar is good for exporters, it's bad for consumers... like you and me.
 
jppt2000 Doesn't know how to read, now wonder!
 
Heavy Set said:
FYI - Milk is more expensive now because the corn used in the cow feed is also being used for ethanol production (to replace expensive gasoline). So, corn costs have increased for farmers too and this translates into higher milk costs for customers. The farmers want to protect their margins so they pass the costs along to the consumers.
Click to expand...

That's a half-truth. What do you think farmers put in their tractors to plant and spray the crops and in their combines to harvest it? It ain't air. It's diesel. Energy costs go up, the cost to farm the land goes up. And it's gone up considerably over the recent years. I'm sure you understand this every time you fill up your car. Imagine only being able to harvest maybe a field or half a field on 100 gal. of diesel. Then you have to refill and head back out. It takes and incredible amount of energy to work the land.

You want passengers to fund your aviation salary, but you won't pay a cent more to the American farmer? Wow.

And yes, my father is in the field right now (nearly 9pm at night) busting his arse, picking corn in the combine.

Now your statement is still half true, because demand for ethanol has risen greatly. But answer this. Would you rather pay the American farmer for his ethanol or the Venezuelan/Arabian/Russian/Chinese oil tycoon?

Now I'm off my soapbox.
 
Last edited:
John Pennekamp said:
Are you aware that the US exports more grain than it uses? And now that the dollar is below most major world currencies, the farmers can get more money selling it overseas than domestically. This coupled with the rising energy prices is why food costs have skyrocketed.

It's starting to look like we're already on the precipice of another recession. Not a good time to start over a a new airline.
Click to expand...

Bingo on the first comment.

I don't entirely believe the second comment. Nearly every American recession in the 20th century was preceeded by a recession in the ag. field. It's a very reliable leading indicator of our economy. The farmers are doing well now....after having their arses handed to them for about 5 to 6 years.
 
DGdaPilot said:
Now your statement is still half true, because demand for ethanol has risen greatly. But answer this. Would you rather pay the American farmer for his ethanol or the Venezuelan/Arabian/Russian/Chinese oil tycoon?
Click to expand...


Now that's the half-truth. The process of creating ethanol burns more fossil fuels than the energy yield of the ethanol. You're paying the oil tycoon anyway. Ethanol as a "source of energy" is a complete sham, consuming billions of dollars of taxpayer money and wasting even more oil than if we'd burned it directly in our cars. In the process, we're driving up food costs even further.

Want a solution to the energy problem? Electric or plug-in hybrid cars, and a lot more nuclear reactors. And yes, I'd gladly have one in my backyard.
 
CA1900 said:
Now that's the half-truth. The process of creating ethanol burns more fossil fuels than the energy yield of the ethanol. You're paying the oil tycoon anyway. Ethanol as a "source of energy" is a complete sham, consuming billions of dollars of taxpayer money and wasting even more oil than if we'd burned it directly in our cars. In the process, we're driving up food costs even further.

Want a solution to the energy problem? Electric or plug-in hybrid cars, and a lot more nuclear reactors. And yes, I'd gladly have one in my backyard.
Click to expand...

Consider that the refining processes of ethanol are still in their relative infancy due to a lack of public and government support. That is until recently. It will become more efficient....it might not end up coming from corn in the end, but the ball has only begun to roll.
 
Hi!

Ethanol is a reasonable idea that can help out with the shortage of oil.

BUT, oil from corn is stupid. We need to stop making it from corn, and make it from easy to grow/low energy investment plants such as switchgrass.

Concentrating our time and money on solar/wind and other direct renewables is an even better idea.

Continued massive tax breaks for oil companies to get us more oil is STUPID beyond belief.

cliff
YIP
 

Share this page

Latest posts

Latest resources

Latest media

Carbon Cub FX-3 Shenandoah Valley
Carbon Cub at Kittyhawk
FX-3 in the backcountry
IFR Panel in a Carbon Cub FX-3
Cub-Provo-UT-c.jpg
Back
Top