Daily turn in Currency Markets

[skate]

Rose to 3.2 TRILLION. that 's Daily.

thats for the whole world.

But how much is from the USA (Dolar):( ?

[Gibbon]

Today, in NYC, Joe Sixpack will pay exactly $3.49 for a Big Mac (not that I bought one of the nasty things.)

If the value of U.S. dollars declines against the Euro as it has recently, Joe can still waddle down to McDonald's - and still pay $3.49 for his Big Mac.

And if the dollar loses 10% of its value over the next month? Mr. Sixpack doesn't care. He can still get his 610 calories and 25 grams of fat on a sesame seed bun for $3.49.

While world currency exchange rates don't affect most people's daily lives at all. The world's truly great investors and traders, like Warren Buffett, George Soros and Tudor Jones (http://en.wikipedia.org/wiki/Paul_Tudor_Jones), care about investing in the currency market a lot. Here's why…

There are several ways of investing in the currency market to make you money…

Portfolio Diversification: Most stocks have little correlation to the currency markets. This means that you can add another investing feather to your cap - one that can move, regardless of whether stocks are rising, falling, or flat.

Longer Trends: The currency market has long been regarded as one of the most "trending" markets in the world (here, "trending" means persistent movement in one direction). And when a market is trending, that means you have a better chance to profit from it.

Higher Liquidity: The currency market is the world's biggest, most liquid market. That means you don't have to hang around waiting for other investors moving the price of the U.S. Dollar - the Euro, or other major currencies to the level where you want to buy or sell.

If Joe Sixpack works at a fine restaurant or hotel, Joe stands to make mucho dinero from a weaker dollar enticing foreigner to visit NYC in ever increasing numbers.






________________________________
Capital as such is not evil; it is its wrong use that is evil. Capital in some form or other will always be needed. ~ Mohandas K. Gandhi

Can anybody remember when the times were not hard and money not scarce? ~ Ralph Waldo Emerson

[Maji]

U.S. consumers benefit from a strong dollar, but U.S. exporters are hurt. A strong dollar means that it takes more of a foreign currency to buy U.S. dollars. U.S. goods and services become more expensive for foreign consumers who, as a result, tend to buy fewer U.S. products. Because it takes more of a foreign currency to purchase strong dollars, products priced in dollars are more expensive when sold overseas.



Strengthening Dollar
Advantages

Consumer sees lower prices on foreign products/services.
Lower prices on foreign products/services help keep inflation low.
U.S. consumers benefit when they travel to foreign countries.
U.S. investors can purchase foreign stocks/bonds at "lower" prices.
Disadvantages


U.S. firms find it harder to compete in foreign markets.
U.S. firms must compete with lower priced foreign goods.
Foreign tourists find it more expensive to visit U.S.
More difficult for foreign investors to provide capital to U.S. in times of heavy U.S. borrowing.
</SPAN>



Weakening Dollar
Advantages

U.S. firms find it easier to sell goods in foreign markets.
U.S. firms find less competitive pressure to keep prices low.
More foreign tourists can afford to visit the U.S.
U.S. capital markets become more attractive to foreign investors.
Disadvantages


Consumers face higher prices on foreign products/services.
Higher prices on foreign products contribute to higher cost-of-living.
U.S. consumers find traveling abroad more costly.
Harder for U.S. firms and investors to expand into foreign markets.
http://www.chicagofed.org/consumer_information/strong_dollar_weak_dollar.cfm

[Dick Schmidt]

Skate,


$3.2 trillion is a lot of money but an "average" day is over $2 trillion. Normally the US dollar is involved in about half the trades on any given day, though of course the dollar can be on either side of the trade.

One other thing to consider is that we owe trillions to overseas investors and now we are paying them back in cheap dollars. A lot of people see this loss of value in the dollar as the end of the world or something. If you truly think the sky is falling, sell short! You can earn a lot of Big Macs if you're right.

Dick

Who thinks it is a good rule of thumb to listen to all the financial experts, read as many newspapers as possible and then do the opposite of what they all advise.

[Gibbon]

Dick, perhaps you meant to say we OWN those investors !!!!

As “the Donald (http://en.wikipedia.org/wiki/Donald_Trump)” is fond of saying “borrow a couple hundred thousand and the bank own you – but - borrow a couple hundred million and you own the bank.”









___________________________
Under capitalism man exploits man; under socialism the reverse is true ~ Polish Proverb

[skate]

Skate,


$3.2 trillion is a lot of money but an "average" day is over $2 trillion. Normally the US dollar is involved in about half the trades on any given day, though of course the dollar can be on either side of the trade.

One other thing to consider is that we owe trillions to overseas investors and now we are paying them back in cheap dollars. A lot of people see this loss of value in the dollar as the end of the world or something. If you truly think the sky is falling, sell short! You can earn a lot of Big Macs if you're right.

Dick

Who thinks it is a good rule of thumb to listen to all the financial experts, read as many newspapers as possible and then do the opposite of what they all advise.

Dick;

yes sir, i agree and thanks for the additional info.

i wanted to respond, if anyone was interested. the dollar, while lower in some markets still commands ALL other economys.
and as you and others here have stated, a lower value will give the "balance of trade" some Balance .


what i found with the average (daily $3.2 trilli0on average) currency traded ,the USA Dollar had a 4/5 th % of the over-all average. this is versus all other economies combined.

also, being able to pay back in a smaller amount is very much in accord with my thinking.

i guess why i really like these issues is because thay are not heard on the nitely news.

[skate]

Gibbon; Wow!


thanks for "right on point post".

here i am busy as hell, id like to answer, but...

john paul jones, from Memphis, what a story there.


im going to read post again, but i wonder if your Tudor Jones was in the trucking business, years back.?

[skate]

Maji;


good points, but being Friday, ill need more time to answer 1/2 way.

looks like, along with the weaker dollar (good for many) the export (food and Tobacco) business here in the USA should be real good. an increase in the price of food locally will be rough.

the "back yard Garden" will be in fasion once again.