US Dollar sinks to new low against Euro

The US dollar is now valued close to 0.75 Euro, down from its peak of
1.25 a couple of years ago. Analysts say it may go even lower, with
some projecting exchange rates of 0.7 (1.4 dollar to the Euro).

This has pretty much put the kibosh on my goals of buying a new
European sailplane. A model at, say, Euro 85,000 cost around $70,000
a couple of years ago, is now around $110,000 and may soon be at
$120,000.

Economic models would suggest a strong incentive for sailplane
manufacture in North America, but I wonder if the numbers of potential
sales would justify this.

Any thoughts?

Well based here in the UK, it looks like your going to get the sort of deal
we are used to over here.

Your prices are normally the same in dollars as they are to us in GBP, which
means at least a 50% increase. I see this in my Amateur radio equipment
as well.

May be the end of cheapness is on its way to you, welcome to the club!!

Malcolm...



"Mike Stringfellow" wrote in message
om...
The US dollar is now valued close to 0.75 Euro, down from its peak of
1.25 a couple of years ago. Analysts say it may go even lower, with
some projecting exchange rates of 0.7 (1.4 dollar to the Euro).

This has pretty much put the kibosh on my goals of buying a new
European sailplane. A model at, say, Euro 85,000 cost around $70,000
a couple of years ago, is now around $110,000 and may soon be at
$120,000.

Economic models would suggest a strong incentive for sailplane
manufacture in North America, but I wonder if the numbers of potential
sales would justify this.

Any thoughts?

Mike,

Classic economic theory suggests that you are absolutely correct: the very weak
dollar would also lead to additional exports of US-manufactured sailplanes.
But by the time a manufacturer would have developed the plane, gone through all
the hoops for certification, etc...to satisfy a fairly small domestic demand,
who knows if the greenback will not have bounced back, and rendered the initial
plan moot and incorrect? Besides, given the flak which comes up everytime the
PW-5 is mentioned, who would risk come up with a "modern" sailplane design and
satisfy all the inevitable criticism. Few companies would be willing to invest
that much $$$ for a questionable return.

Cheers, Charles

Mike Stringfellow wrote:

The US dollar is now valued close to 0.75 Euro, down from its peak of
1.25 a couple of years ago. Analysts say it may go even lower, with
some projecting exchange rates of 0.7 (1.4 dollar to the Euro).
....
Any thoughts?

The result of the economic politcs of the last four years. It was your
choice to continue like this for the next four years.

Stefan

Hey, nobody said building a glider with 'moral values'
would be cheap

At 00:06 06 November 2004, Stefan wrote:
Mike Stringfellow wrote:

The US dollar is now valued close to 0.75 Euro, down
from its peak of
1.25 a couple of years ago. Analysts say it may go
even lower, with
some projecting exchange rates of 0.7 (1.4 dollar
to the Euro).
....
Any thoughts?

The result of the economic politcs of the last four
years. It was your
choice to continue like this for the next four years.

Stefan

Stefan wrote:
Mike Stringfellow wrote:

The US dollar is now valued close to 0.75 Euro, down from its peak of
1.25 a couple of years ago. Analysts say it may go even lower, with
some projecting exchange rates of 0.7 (1.4 dollar to the Euro).

...

Any thoughts?


The result of the economic politcs of the last four years. It was your
choice to continue like this for the next four years.

Stefan

Not mine Bubba.

Shawn

"Mike Stringfellow" wrote in message
om...

Economic models would suggest a strong incentive for sailplane
manufacture in North America,

Like this? http://www.peregrinesailplane.com/

Vaughn

Vaughn wrote:
"Mike Stringfellow" wrote in message
om...

Economic models would suggest a strong incentive for sailplane
manufacture in North America,


Like this? http://www.peregrinesailplane.com/

Vaughn

Or like this:

http://www.windward-performance.com/

And if the US$ continues to sink, maybe some of these will find their
way to Europe. We'll have to sell boatloads to make up for our trade
imbalance, though.

--
Change "netto" to "net" to email me directly

Eric Greenwell
Washington State
USA

"Vorsanger1" wrote in message
...
Mike,

Classic economic theory suggests that you are absolutely correct: the very
weak
dollar would also lead to additional exports of US-manufactured
sailplanes.
But by the time a manufacturer would have developed the plane, gone
through all
the hoops for certification, etc...to satisfy a fairly small domestic
demand,
who knows if the greenback will not have bounced back, and rendered the
initial
plan moot and incorrect? Besides, given the flak which comes up
everytime the
PW-5 is mentioned, who would risk come up with a "modern" sailplane design
and
satisfy all the inevitable criticism. Few companies would be willing to
invest
that much $$$ for a questionable return.

Cheers, Charles

Ah shucks, I was figuring DG would outsource LS-4 production to US.

Frank

If the US$ continues to sink, the trade imbalance will correct itself: imports
of any type will be too expensive, and US exports will boom, sailplanes
included.
Cheers, Charles