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[ualdriver]

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!

 

[PCL_128]

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....

 

[John Pennekamp]

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!

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.

 

[SilverandSore]

Atlanta. And milk costs ~$4.79 here now.

Stop buying it at the Airport! It's $3.50 outside of the city...

 

[Floyd94]

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

 

[ualdriver]

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!

 

[John Pennekamp]

He-he. What percentage of the cost of the gallon of milk is due to transportation and the plastic container?

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,

If they're feeding the cows imported grain, then it must be cheaper than grain they can obtain domestically.

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.

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.

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.

A weak dollar is not all bad either, especially if your costs are largely denominated in dollars and you're an exporter!

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.

 

[Homer Jay]

I live in Cincinnati, milk is 2.50 a gallon ALL the time.

You're on CRACK to say milk is $4.79 in ATL. Maybe in NYC but in ATL.....It's a bit exaggerated, ya think?

Yeah, but Cincinnati is a hell hole. Enjoy your cheap milk...

 

[Buddro]

Yeah, but Cincinnati is a hell hole. Enjoy your cheap milk...

Oh, trust me....I will.

 

[say again]

Yeah, but Cincinnati is a hell hole. Enjoy your cheap milk...

I couldn't agree with you more!!!!!!