Saturday, November 24, 2007

Houston, we have a dollar problem

Who doesn’t? And as if anybody in Houston could help. That Airbus makes impressive technology was already a well-known fact, but that they could also build planes able to sink as fast as the US dollar can was thought to be absolutely impossible. Up until now, that is. But it turns out that they can. And now scientists have figured out how they do it. Any company can do this, it seems: All you have to do is sell your products in dollars and pay your employees in euros.



But there’s more. If you really want to fly with the eagles, base your infamous Airbus “Power8” reorganization plan (the firing of 10,000 people and selling of several production facilities) on an exchange rate of $1.30 to $1.35 and then watch in awe as that ever-reliable US greenback drops even lower to around $1.50 where it is now. No wonder German Airbus boss Thomas O. Enders is talking about needed adjustments to counterbalance the “life-threatening” effects the weak dollar is having upon his company.

I think it’s high time that the Europeans consider paying their employees with a gentler and nicer and even friendlier currency than that high-flying euro. No, not the dollar (these people do have to eat, you know). But maybe temporarily introducing the Peso would quiet things down for awhile. Just an idea.

Sorry, wir akzeptieren hier keine Dollars.

Kommentare auf Deutsch? Logisch.

Posted by clarsonimus at 09:13:29 | Permanent Link | Comments (6) |
Comments
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1 - Have you read many articles on this that go deeper than the headlines? I'd like to ask the finance directors of Airbus why they haven't been adequately safeguarding the company from swings in the dollar/euro exchange rate. Haven't they heard of the futures market? No modern company has to adjust to the spot market from day to day They're supposed to be hedged against this for years in advance, aren't they? (Comment this)

Written by: ian in hamburg at 2007/11/24 - 11:46:51
2 - And since when does Airbus have to operate like a normal business and make a profit? Since never! They'll just claim an operating loss, and get loans from the parent governments to make up the difference... which will of course never be paid back. That's the way Airbus operates. That along with corruption, bribes, political manoeuvrings, governmental strong-arming, extortion, and kick-backs to go along with that age-old favourite, selling for less than cost. These are all common techniques used by Airbus in the international marketplace. No problem. The Sheeple will pick up the tab. After all, isn't it worth it to protect those high-tech jobs? Boeing is way behind times. They just try to sell good products at a fair price. How stupid can you get?

Scout

 (Comment this)

Written by: Anonymous at 2007/11/24 - 19:07:00
3 - Anonymous,
And does Boeing have proof they've never accepted a government handout, paid a bribe or lobbied the US government for favourable treatment? Holier than thou you may be, but Boeing sure as hell ain't. (Comment this)

Written by: ian in hamburg at 2007/11/25 - 12:15:38
4 - Since when should Boeing, or anybody, have to prove innocence? You go ahead and provide proof they're guilty of something, then we'll talk. (Comment this)

Written by: Jay at 2007/11/25 - 17:09:35
5 - ian, it really is two different ways of thinking, though. Both mega-industries are directly or indirectly "subsidized" by government military contracts, for instance (think about Ike’s warning about the military industrial complex way back when during the Dr. Strangelove era already), but Boeing has to make a profit in the end, Airbus doesn’t. Or do you think the Europeans would just throw up their hands and say aw shucks, too bad, we’re going to let you go under? I don’t believe that the US government would lift a finger if Boeing mismanaged itself into oblivion. Well, they might lift one, if you know what I’m sayin’. (Comment this)

Written by: clarsonimus at 2007/11/25 - 17:17:25
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