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posted August 08, 2005 10:26 PM
Kawi news...
It started in SouthAfrica of all places, but Kawi is dropping prices 18%....
Good news??? or bad news???
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trenace
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posted August 08, 2005 10:59 PM
 Edited By: trenace on 9 Aug 2005 00:04
I wonder if it might not have more to do with currency fluctuations between the South African Rand and the yen; and/or sales situations in South Africa, rather than being due to worldwide causes?
These fluctuations have been considerable.
For example from Jan 2004 to Jan 2005, the rand went from buying 15.3 yen to buying 17.3 -- about a 13% strengthening (not that there is anything magic about those two particular months: picking different months would give a different percentage.)
Even short term there is a lot of fluctuation, for example this 120 day graph:
Or are you saying prices are dropping worldwide on Kawasaki products?
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VincentHill
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posted August 09, 2005 11:21 AM
Edited By: VincentHill on 12 Aug 2005 08:14
Also with the Dollar worth nothing everywhere BB (Before Bush) 12 Rand per Dollar. WB (With Bush) 6.5 to 7 Rand per Dollar
BB 1 dollar = .86 Euro.
WB 1.36 Euro = 1.dollar
BB 1.50 Pound = 1.dollar
WB 1.80 Pound = 1.dollar
BB 1 dollar = 1.10 yen
WB 1 dollar = .90 yen
Everyone but us has gained in value of course a cheap dollar should help the trade Imbalance
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Otis
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posted August 09, 2005 11:48 AM
You're killing me Vincent.
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VincentHill
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posted August 09, 2005 12:38 PM
quote:
You're killing me Vincent.
I knew it, I just knew that at least you would enjoy this  . The first thing that alerted me to it was Pierre's price for his parts when he stated that he needed to open up a shop here in the US where Labor was "3rd world country Cheap". Second when I tried to buy a used ECU and everyone was telling me how people in the Europe were buying out everything we had because it was "So Cheap". "Just the Facts Mamm" You know that there is a problem when the dummies from my own state of Ohio almost vote in an Iraq War Vetran who opposes the war and has no campain money. (Maybe there is hope for Ohio after all "NAW" things are not bad enough yet
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Made History @ Daytona and still one fast old man!!
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Y2KZX12R
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posted August 12, 2005 04:50 AM
actually a dollar is worth less than the pound 1.50 = 1 pound
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Y2KZX12R
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Y2KZX12R
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posted August 12, 2005 04:52 AM
and the trade imballance is worstened by a strong dollar
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Y2KZX12R
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VincentHill
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posted August 12, 2005 07:15 AM
quote:
actually a dollar is worth less than the pound 1.50 = 1 pound
Correct, I turned it around! I knew what I wanted to saw but said it wrong in Anticipation of Mr, Otis
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trenace
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posted August 12, 2005 03:22 PM
Money has no intrinsic worth.. the reason people value it is because of the value of goods and services they expect to be able to obtain with it, combined with (and this is a very important aspect often not considered) the expected future of value of goods and services they expect to be able to obtain with it, given the investment opportunities available that are payable in that currency in the future.
OK, sounds academic, but the upshot of that is that when an economy is overvalued, people have estimations of the future that time soon shows to be unrealistic, just paper, pipe dreams, then the relative price of that currency goes up -- unrealistically so -- compared to other economies that don't have similarly overestimated futures.
As of 1999 the US economy was already entering correction -- in other words recession -- due to the "bubble" of unrealistic expectations that had been created, for example dotcom companies that sold NO product being valued in the billions or even tens of billions of dollars, utterly unrealistic projections of future GDP resulting in unrealistic projections of future surplus, etc.
So that's been corrected.
At the same time I wouldn't be surprised if the European economies have been overestimated tin the same time frame, for various reasons.
So that's the "expected future value" aspect... the other aspect is the present value in terms of goods and services that can be purchased.
Some inbalance in this tends to occur due to the above reason, but regardless the present value is a strong correcting factor. If for example you can buy a given commodity from America for $100 US or can buy it in Europe for 100 Euro, that will tend to drive the Euro towards equal value to the dollar, as -- on account of the Euro being able to obtain no greater goods or services than a dollar -- people won't want to buy Euros for a price much higher than a dollar (unless there are investment reasons.)
Similarly if you can buy a given commodity from Europe for only say 50 Euro while buying the same from America would cost $100, that will tend to drive the dollar to being priced only half of the Euro (again, adjusted for investment reasons.)
All I am saying is that there are reasons for what happens that are pretty understandable.
And, as Y2KZX12R said, the relative valuation of currencies also affects and tends to correct for trade deficit. Basically the relative valuation is where the "best guess" of the market is for things to function as smooth and equably as possible, and that collective "guess" changes as new information comes in.
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VincentHill
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posted August 12, 2005 03:53 PM
?? WOrst yet, I was even able to follow your thinking. Call me Selfish, but when I cannot buy something because things here are so cheap that we have become the Worlds Junk Yard, I take notice
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Made History @ Daytona and still one fast old man!!
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