For some reason, last Fall Dubya decided to devalue the US dollar. WhY? I wish I knew, but it's working, the dollar's value is falling *shrug*.
I may be wrong here but I don't think that an actual step was made by the Federal government to devalue the US dollar, they just haven't taken the steps to stabilize or prop up the value that the dollar is trading in international currency exchanges. They would do this by taking money out of circulation, most likely temporarily, until the price has stabilized. The administration is hedging its bets that not doing this will help out the US economy in recovering from the long recession, which may work as long as the value doesn't fall so low as to scare off foreign investment money from US markets.
To actually devalue the currency would be to print more money and add that to the circulation. I don't remember reading anything about this. Doing this would be very big news not only here but abroad as well since there are a number of currencies that are based on the dollar.
If 2.3 is a reality, where does that put the rest of the PM line?
2.3, 2.5, 2.7?
Is this possible? All I have seen lately was 2.2, 2.4, 2.6, etc. I guess if some yields were 2.3 GHz, they could be thrown at the Xserves, but why add yet another processor speed to the mix?
To bring this 'round back on topic...
The first (only?) XServe speed-bump brought it to 1.33GHz, while the PM was never at 1.33. PMs went 1G -> 1.25G -> 1.42G.
Yes, I understand how it changes our perceived cost of goods here and abroad, I just think reducing the value of the dollar is the same mindset that pushes short term gains at the expense of the long term in order to look more positive to watchers. After all, someone has an election to win next Fall.
Devaluation has a specific meaning in monetary circles. The US has not devalued the dollar. What the US has done is loosen monetary constraints (read: lowered interest rates) to increase the supply of dollars. (Lower rates encourages borrowing, more borrowing means more dollars available to spend.) Increases in the supply translates to better foreign exchange rates. This is intended to stimulate the economy.
Comments
Originally posted by PBG4 Dude
For some reason, last Fall Dubya decided to devalue the US dollar. WhY? I wish I knew, but it's working, the dollar's value is falling *shrug*.
I may be wrong here but I don't think that an actual step was made by the Federal government to devalue the US dollar, they just haven't taken the steps to stabilize or prop up the value that the dollar is trading in international currency exchanges. They would do this by taking money out of circulation, most likely temporarily, until the price has stabilized. The administration is hedging its bets that not doing this will help out the US economy in recovering from the long recession, which may work as long as the value doesn't fall so low as to scare off foreign investment money from US markets.
To actually devalue the currency would be to print more money and add that to the circulation. I don't remember reading anything about this. Doing this would be very big news not only here but abroad as well since there are a number of currencies that are based on the dollar.
Originally posted by Jubelum
...
If 2.3 is a reality, where does that put the rest of the PM line?
2.3, 2.5, 2.7?
Is this possible? All I have seen lately was 2.2, 2.4, 2.6, etc. I guess if some yields were 2.3 GHz, they could be thrown at the Xserves, but why add yet another processor speed to the mix?
To bring this 'round back on topic...
The first (only?) XServe speed-bump brought it to 1.33GHz, while the PM was never at 1.33. PMs went 1G -> 1.25G -> 1.42G.
So, it has been done before.
Originally posted by PBG4 Dude
Yes, I understand how it changes our perceived cost of goods here and abroad, I just think reducing the value of the dollar is the same mindset that pushes short term gains at the expense of the long term in order to look more positive to watchers. After all, someone has an election to win next Fall.
Devaluation has a specific meaning in monetary circles. The US has not devalued the dollar. What the US has done is loosen monetary constraints (read: lowered interest rates) to increase the supply of dollars. (Lower rates encourages borrowing, more borrowing means more dollars available to spend.) Increases in the supply translates to better foreign exchange rates. This is intended to stimulate the economy.