Does Euro:USD exchange rate affect import beer prices much?

It is taking so long to show up because we just got out of the biggest recession since the great depression. You don't just snap out of something like that. Remember that the great depression was actually a recession, a pseudo recovery, and another recession. It takes a while to recover from that big of a blow to the banking, credit, and housing industries. We are also seeing the government cut back when that is the last thing they should be doing, but when the people in charge are so ignorant of economics that they would even threaten to make us default on our debt by not raising the debt ceiling and by doing so throw the country into a decade long depression, it's no surprise that they would not do the proper thing with regards to deficit spending.

 

I figured you'd respond along those lines.

We are also seeing the government cut back when that is the last thing they should be doing, but when the people in charge are so ignorant of economics that they would even threaten to make us default on our debt by not raising the debt ceiling and by doing so throw the country into a decade long depression, it's no surprise that they would not do the proper thing with regards to deficit spending.

It's not that they're ignorant it's that they think they can control something which they can't...yet you want to entrust them again? I'll remind you almost every boom-bust cycle has been caused by government and/or the Fed so rather than put your faith in them when they've shown time and time again they don't deserve it you should at least become skeptical, or look elsewhere for the solution.

 

The issue with the current situation is unique to the real estate / banking collapse. Experts have pointed out that the sort of hit we took with toxic securities should take 7 to 10 years to completely be absorbed and cleared through the system. The way to speed up recovery is to spend a lot more and wisely than we have. So if Obama's tort reform was a lot bigger and didn't just go into the pockets of bankers, we should have seen a faster recovery. But the other side wont allow any more gov spending now. For now we wait and hope other shit doesn't pop off.

this is separate yet connected to the overall globalization, automation trends that are outsourcing work and funds

 

First of all, please learn how to quote posts. Hit the reply button on the bottom right of my post. It's really easy.

They only have a limited amount of control. That is definitely true, but the control they have they can use responsibly or moronically. Wheres your data to back up that BS claim that almost every boom-bust cycle has been caused by the gov/fed. You can't just make things up that feel right and use them as arguments.

The fed is full of people who have been studying this very thing for decades. They look at more up to date data than anyone else on the face of the earth. They statistically model their actions, account for more things than you can think of, and have a debate on what they should do. They are a-political and their decisions are driven by fact. If not for them, I definitely believe that we would be much much much worse off right now than we are. They deserve all the faith in the world.

And if you read what I said, I have as little faith in congress as a person could have. If I get sick I call a doctor. If I get arrested I call a lawyer. But if the economy shits the bed we call a bunch of congresspeople who never got past econ 101?

Do you realize though, that you just said that they are trying to control something that they can't, and in the next sentence said that they are the cause of every boom bust cycle? I'm done. This proves that arguing on the internet is like being in the special olympics. I might win, but I'm still ******ed.

 

Spending more dollars than Euros is irrelevant. Its all about the trend. AGold's post about the Yen is spot on. A few years ago you could get 100 yen for a dollar; now that's down to something like 77 - thats bad for holders of USD. Just because you get 77 yen for the dollar doesn't mean you're getting a good deal, just like paying "more" dollars for a Euro doesn't mean bad deal. Dollars/Euros/yen are just arbitrary units of measure - so one being more/less than the other doesn't matter, the importance is in how their relationship changes over time.