How will the dollar affect your fencing?

[Beloit Fencer of Old]

I'm curious about how the dollar's slide may affect your fencing. As most of you know, the dollar has been sliding in value vis a vis many foreign currencies for some time. I'm not generally one to panic at signs of a weak dollar. For one thing, I keep some of my assets in foreign stocks and bonds (as we all should). For another, a weak dollar can help to reduce the trade deficit as it becomes cheaper for foreign countries to buy products from the US.

On the other hand, if you like nice things which are produced overseas, say, BMWs, petrolium or fencing equipment, a weak dollar can be distressing. Let's look at a specific (hypothetical) fencing example: a foil.

Imagine that it costs a company in Europe 50 euros to produce a foil. Several years ago, when the euro was roughly equivalent to the dollar, it may have ended up with a stateside distributor, listing it for sale for $100 (imagine a 25 euro profit for the manufacturer and a 25 dollar profit for the stateside supplier...I know we're simplifying, ignoring duties, taxes, shipping, etc., but stick with me).

Now, the euro is equal to 1.52 dollars. So, let's look at the cost to the domestic supplier...50 euros for the manufacturing cost plus 25 euros for the manufacturer's profit, or 75 euros, equals $114 cost to the domestic supplier. If the domestic supplier is working on a margin of 25%, then is sale price goes to $152.

Of course, there is some elasticity in pricing, as manufacturers and distributors will take up some of the cost increases, long term contracts for steel may keep some of the costs down, and other factors come in to play. But essentially, what we buy from overseas is affected by the value of what we use to pay for it.

And that's simply one foil, which conceivably could go from $100 to $152 just due to exchange rates. What about people who travel to Europe to compete? What does that cost and how much is it going up?

Whaddayathink?

[KD5MDK]

No affect on me. I expect people who paid in Euros and are waiting on reimbursement from the USFA are going to be screwed, if they submitted their receipts in dollars months ago.

Maybe attendance at the Las Vegas World Cup will be up. (Well, the GP will max out of course)

[bunbury]

A plurality of America's oil use is domestically produced. BMWs are made in Greenville, South Carolina. A lot of fencing companies have outsourced to China.

I see near 0 problems regarding fencing or foreign commodities. Average American spends 5-8% of their disposable income on food compared to the average European spending 35-40% (source: WSJ). Property shows a similar disparity. Weak dollar doesn't change that domestic purchasing power is massive. If you are making $30,000/yr, have no kids and are somehow in debt (outside of college loans, of course), you've bought into the rap culture too much ($500/mo for rent, $300/mo for a nice car, $200/mo for food, $400/mo for misc living expenses still leaves $10,000 a year for drinking money).

[irishfolker]

Where do you only pay $500/month for rent?

[Beloit Fencer of Old]

Originally Posted by bunbury

A plurality of America's oil use is domestically produced. BMWs are made in Greenville, South Carolina. A lot of fencing companies have outsourced to China.

I see near 0 problems regarding fencing or foreign commodities. Average American spends 5-8% of their disposable income on food compared to the average European spending 35-40% (source: WSJ). Property shows a similar disparity. Weak dollar doesn't change that domestic purchasing power is massive. If you are making $30,000/yr, have no kids and are somehow in debt (outside of college loans, of course), you've bought into the rap culture too much ($500/mo for rent, $300/mo for a nice car, $200/mo for food, $400/mo for misc living expenses still leaves $10,000 a year for drinking money).

Much of our oil is domestically produced, but the oil markets determine the price to the consumer. Not all BMWs are made in the US. Some fencing equipment manufacturing has been outsourced to China, which is nice, because China still pegs their "dirty float" to the dollar. But the good forges are still in Europe. And travelling to Europe still requires spending in Europe. What happens, however, when China decides to let their currency float? (not likely for a long time)

[Beloit Fencer of Old]

Originally Posted by irishfolker

Where do you only pay $500/month for rent?

In a van down by the river.

[Fencergrl]

I personally like the US dollar being roughly at par with the Canadian. Makes my purchasing for both businesses a little cheaper.

[Fencergrl]

I personally like the US dollar being roughly at par with the Canadian. Makes my purchasing for both businesses a little cheaper. So yeah... it's had a positive effect on what I buy and how much I buy of fencing equipment.

[bunbury]

Originally Posted by irishfolker

Where do you only pay $500/month for rent?

Columbia, Seattle, Portland, Washington DC, Atlanta, Baltimore, Miami, and Boston are the only places I've checked for, and in some of those cities, $500 is a decent place. Even at $700 a month you are still left with $8000 for drinking. According to Forbes, $700 a month will get you a 300sqft apartment in New York City, more then enough for a single adult.

[irishfolker]

Not in anyplace in the Washington-Baltimore area where you would want to actually live.

[Beloit Fencer of Old]

Originally Posted by Fencergrl

I personally like the US dollar being roughly at par with the Canadian. Makes my purchasing for both businesses a little cheaper. So yeah... it's had a positive effect on what I buy and how much I buy of fencing equipment.

Actually, most of us in the US are kinda hoping Canada will consider purchasing Vermont from us. It comes with some really nice ice cream, lots of cows and a bunch of commies. *cough* I mean socialists.

[Fencergrl]

It's hard to turn down a offer like that... and from the pictures I've seen in Maple's photo gallery, it's very pretty. Okay... but you guys have got to take Ottawa as part of the deal.

[Beloit Fencer of Old]

Originally Posted by Fencergrl

It's hard to turn down a offer like that... and from the pictures I've seen in Maple's photo gallery, it's very pretty. Okay... but you guys have got to take Ottawa as part of the deal.

Hmmmm. Ottawa. Who would be in charge of you? The FIE?

[Fencergrl]

I think we'll manage without... to be truthful not much will change. With Ottawa gone, Quebec will empty the bank account then say they want a divorce. We'll laugh at them and go back to ignoring them. Ontario will make all their money from strip clubs and handing out speeding tickets.

The Atlantic will continue to have no fish and spend their time either in the bars or the oils fields of Alberta or putting together great bands. Alberta with their debts paid off will become loan sharks to BC, who's going to spend money like a drunken sailor on payday on shore leave.

We really don't need Ottawa... it's all yours. Enjoy!

[bunbury]

Originally Posted by irishfolker

Not in anyplace in the Washington-Baltimore area where you would want to actually live.

Stop talking and go look it up. Reston, College Park, Adams Morgan, just to name 3 places.

[Beloit Fencer of Old]

Originally Posted by Fencergrl

I think we'll manage without... to be truthful not much will change. With Ottawa gone, Quebec will empty the bank account then say they want a divorce. We'll laugh at them and go back to ignoring them. Ontario will make all their money from strip clubs and handing out speeding tickets.

The Atlantic will continue to have no fish and spend their time either in the bars or the oils fields of Alberta or putting together great bands. Alberta with their debts paid off will become loan sharks to BC, who's going to spend money like a drunken sailor on payday on shore leave.

We really don't need Ottawa... it's all yours. Enjoy!

Instead of Ottawa, could we just get a few more of your decent comedians?

[irishfolker]

I live up the road from there. Believe me, I'll take the lower crime and lower traffic in my neighborhood over any of them. I've been in this area all my life. I know what those places are like.

[Fencergrl]

Originally Posted by Beloit Fencer of Old

Instead of Ottawa, could we just get a few more of your decent comedians?

What do you think Ottawa is full of? Politicians and government workers are only funny when they're not your own. Admit it... it would be cute listening to them say hello in both languages and usually only succeeding with one.... which will be the one you insist they talk to you in.

[glowstix]

Originally Posted by Fencergrl

What do you think Ottawa is full of? Politicians and government workers are only funny when they're not your own. Admit it... it would be cute listening to them say hello in both languages and usually only succeeding with one.... which will be the one you insist they talk to you in.

actually ottawa supposedly has a significantly higher population of women.. unlike cowtown where they are outnumbered by close to 10000!! having said that, i think vancouver will still likely be the next place i'll move to.

back to thread now..

[Fencergrl]

Originally Posted by glowstix

actually ottawa supposedly has a significantly higher population of women..:

That's what the government uses for their drones.