Colombian Peso

[Brandon2253]

What do you guys think, is the peso going to contiune gaining on the dollar?  Its at about 2340 to the dollar right now.

[Pete E]

... in response to Colombian Peso, posted by Brandon2253 on Feb 11, 2005

Even though the dollar ralied against the Euro,sort of the worldwide currency benchark it lost ground against the Colombian peso,so there is some strength in the peso beyond the weakness in the dollar.Not too long back it seemed the consensus was the dollar would continue to fall over the long haul.Now there seems to be some thinking its going to come back or hold its own.
Two things working for the dollar,alot of countries don't want to see it fall and efforts will be made to prop it up
if it falls much more.And even though Bush cut taxes at a bad time for the deficit recent talk about cutting spending makes the deficit situation look a little brighter.Now that he has a sizable majority in both houses maybe we can get rid of some of the government owes you a living thinking and cut some fat out of the budget.
Little aside,the trade negotiations between Colombia and the US are being burdened by the US desire to protect US drug companies and get rid of alot of Colombian generic drugs.I hope Colombia tells the US to stick it.These people can't afford to pay huge US drug prices for something that can be produced cheaply,and their health will be seriously effected if Colombia goes for that BS.It shows how much campaign money and lobbying can effect international relations.One drug I was using,$12 a pill.Colombian generic,$1.
On the other hand there are lots of sacred cows being protected in Colombia.You can't import a used car,so used cars are outrageously expensive here.Somebodies empire is being protected,like the guys who control the new car sales.

Pete

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[Pete E]

... in response to Re: Colombian Peso, posted by Pete E on Feb 12, 2005

Bush just listed like 150 programs he wants to eliminate or cut the spending for.Good start in my opinion.Lots of them are pet programs certain legislators got approved.Some do nothing that isn't being done somewhere else.
The presidential election was not just about the personalities of 2 men.Entirely different approches to spending and taxing are involved,as well as the administration of the government departments.
I think there is alot more that could be cut from the government.Like agricultural programs that have fertile land with natural rainfall in the midwest sitting unused while other people are irrigating crops in the desert.And we have a supposed water shortage.We have a water allocation problem,not a water shortage problem.
Take a cleaver to that budget.Listen for the squeals by the piggies feeding at the trough.
One thing I do not agree with Bush on and  cringe every time he says it.Make his tax cuts permanent,as in can never be changed? Even if I thought he went about it the right way,which I do not,nothing should be permanent.We need to pay  for services rendered,not keep borrowing ourselves in to a financial quagmire.This is the biggest problem with the dollar.No options should be taken off the table.A very bad thing about the California budget is so much spending was voted in by the public there is a limited amount that can be changed to fix the budget.Arnold has a tougher job budgetwise  than George.
Hmm,maybe there could be a ballot measure in California to
recind some of the former ballot measures spending so much money.Go for it Arnold.With your personality behind it it might be possible.

Pete

[Brazilophile]

... in response to Spaeking of budget cuts, posted by Pete E on Feb 12, 2005

It is unfortunate that the US budget is SO misunderstood.  

Pete, the "the government owes you a living thinking" is the line used by conservatives to justify cutting programs that help low income people.  The progranms that help HIGH income people are never mentioned OR cut even though those programs are also representative of "the government owes you a living thinking".

Any business that sells services to government falls into that category.  Why?  because those businesses OVERCHARGE the government!!  They get "cost plus profit" contracts from the government and then dump the overhead costs of EVERY non-government or fixed price contract into the cost plus contracts.  That's how our tax dollars go to pay $600 for a toilet seat!!!  That's HIGH income people applying the "the government owes us a living thinking".  I'd like to hear some conservatives complain about that form of corporate welfare once in a while.

As for cutting government spending by cutting programs, that is a dream in technicolor.  There are two types of government spending; discretionary and non-discretionary.  Non-discretionary spending is composed of entitlements such as Social Security benefits to the retired, Medicare benefits to those over 65, and VA benefits to veterans, and interest payments on government debt.  Non-discretionary spending makes up almost 70% of all government spending and is increasing due to our government continuing to borrow like there is no tomorrow, the rising number of retirees, and rising health care costs.

The rest is discretionary spending and defense makes up 90% of it.  The 150 programs that are being cut, school lunches, welfare, the traditional conservative targets, make up less than 3% of total government spending.  So, YES, by all means, take a cleaver to the budget!  Just be aware that it is ILLEGAL to touch 70% of the budget, undesirable (weaker country) to touch another 27% of the budget, and a good chunk of the remaining 3% includes the cost of having a government, ie the cost of police, fire departments, food and health inspectors, jails and prisons, TSA and security for officials, censuses, etc.

The US dollar IS on a long-term decline path against most currencies, barring any amazing technological developments in the next few years.  In August, I got 3.13 reais to the dollar in Brazil.  Last week the rate was almost 2.6 reais to the dollar, a 16% appreciation against the dollar in 6 months !!!!!  

[OkieMan]

... in response to Re: Spaeking of budget cuts, posted by Brazilophile on Feb 14, 2005

George W., hire that man!  Good post.

                           OkieMan

[Michael B]

... in response to Re: Colombian Peso, posted by Pete E on Feb 12, 2005

regarding the medicine and auto market...many other items as well. There are two universal truths about business and government (USA, Colombia, Mexico. UK, it doesn't matter) that a lot of people don't understand, they are:

1. Businesses do not PAY taxes, they simply REMIT them to the government after they COLLECT them from their customers, workers and investors, via higher prices, lower wages/benefits, lower dividends, or a combination of all the above.

2. No business ever had a monopoly unless the government GRANTED it to them. If the field is lucrative enough, others will open new business (or start a new division of an existing one) to get their 'piece of the pie'. That is, if the government will LET them, but if the government has been bought off by lobbyist for the existing businesses in the field, the government isn't going to let them, they are going to set the licensing requirements such that the new ones can't get in (often simply by not granting a license at all, as in your used car example).

[Gator]

... in response to Colombian Peso, posted by Brandon2253 on Feb 11, 2005

Continued small gains for the next several months-central bank, Banco de la República, working to shore up the dollar.  Might hit 2275 but I doubt it. Last year the peso rose 15 percent against the U.S. dollar due to global dollar weakness, improving confidence in Colombia, higher exports and increasing remittances from Colombians living and working in the United States. The government and central bank has been trying to stem the peso's gains against the dollar because it is really hurting exporters of goods such as coffee, flowers and bananas. In as much as the $$$$ is starting to gain worldwide the same will happen in Colombia.  By mid year look for about 2500/1