Weak US Dollar Means Nintendo Favors Europe For Now 588
timeOday writes "The LA Times is reporting that the new Nintendo Wii Fit is hard to find on US shelves, due not only to strong demand but also the United States' declining status in the world economy: '"[Nintendo] is also is shrewdly maximizing its profit by sending four times as many units to Europe, reaping the benefits of the strong euro," says Michael Pachter, an analyst with Wedbush Morgan Securities. "The shortage demonstrates one consequence of the weak dollar. We're seeing companies ignore their largest market simply because they can make a greater profit elsewhere."'"
So, does this mean (Score:5, Insightful)
Bush (Score:5, Insightful)
Re:Heh. (Score:5, Insightful)
Re:Heh. (Score:4, Insightful)
Re:Language barriers (Score:5, Insightful)
Re:Language barriers (Score:3, Insightful)
Repeat after me... (Score:5, Insightful)
It always amazes me. When the dollar is strong everyone says the U.S. is loosing economic power because of trade imbalances (weak exports). When the dollar is weak and trade exports are much higher, then people claim the U.S. is loosing economic power because of the weak dollar. Obviously neither interpretation is accurate. A strong dollar can be good and bad, a weak dollar can be good and bad. In this case American video game exporters are probably benefiting from less competition from Nintendo.
Such simplistic interpretations remind me of mercantilist theory, which is similairly idiotic. Carry on.
Re:Bush (Score:5, Insightful)
That is a very nice way to say "he doubled the national debt within few years".
Re:Bah Humbug (Score:3, Insightful)
Its pretty much for those two reasons, I won't be purchasing Rock Band. I still can't like th Wii (games are far to simple and easy for me) but hopefully this will start a trend where the gaming companies actually start to care for Europe.
Re:Bush (Score:3, Insightful)
Sounds like a Ponzi scheme(http://en.wikipedia.org/wiki/Ponzi_scheme), only this one is goverment sanctioned.
Re:Repeat after me... (Score:5, Insightful)
Re:Oh the humanity (Score:2, Insightful)
At the same time, you sell cheaper to other countries which means more exports for you. In fact it's the first time in my life I saw an advertisement for a Dodge in local TV.
Re:Bush (Score:5, Insightful)
ALL money based on an arbitrary valuation is inflationary. Backing it with a shiny metal provides something of a natural cap to inflation, but it's not like there wasn't hyperinflation when our money was "good as gold". In fact, banks were collapsing left and right throughout the 1800's when we were solidly on a gold standard.
> Check out money as debt on google video.
Certainly do so just for edification, but it's eye-rollingly bad stuff. Full of ominous conspiratorial whisperings, and a general emphasis on how evil the whole notion of debt is. How about thinking of it this way: debt is an added valuation on time. And time is about as universal a commodity as it gets.
Market? (Score:3, Insightful)
Just saying.
Re:Oh the humanity (Score:2, Insightful)
Re:Bush (Score:2, Insightful)
I suggest you start from Economics for Dummies as definitely you lack some knowledge.
BTW: all references to "educational" materials on youtube should be classified the same as kittens on treadmill...
we haven't been attacked, we've been sold out (Score:2, Insightful)
First went the unions, then went the blue collar manufacturing, and now the white collar jobs are leaving due to outsourcing. And all so the top 1% can have their annual 15% increase in income while having their taxes dramatically reduced under Regan and Bush II, while the rest of us have seen our payroll taxes go up. Smashing, yea capitalism.
Re:Oh the humanity (Score:5, Insightful)
a sure sign of the decline of the usa: (Score:3, Insightful)
the very existence of this story is a sign of the decline of american society
"where's my blinking flashing noisy shiny drug!?"
you can rest assured any serious society on the move isn't obsessing over video game consoles
now go ahead, mod me a troll. prove me yet more right
Re:It will all end on Jan 20, 2009 (Score:4, Insightful)
Re:Oh the humanity (Score:5, Insightful)
I consider myself to be an environmentalist... MOST environmentalist don't say "Don't chop down trees" they say "Chop down what you need and reseed the forest, using technology that limits the impact on the surrounding earth". We can have both strong environmental policy as well as a powerful industry.
Re:Language barriers (Score:4, Insightful)
Re:Language barriers (Score:5, Insightful)
It's been 15 years since I last came across anyone in mainland Europe that didn't speak any English at all - a very helpful French shop owner in a tiny town in Provence that, when he realized we were talking past each-other with my limited French, stopped a couple of random people who were passing by his shop and got them to translate.
On my last proper visit to Paris a couple of years ago it had been 12 years since last time I'd spent any amount of time there (I'd been on a couple of business trips where I spent 3-4 hours in town and then went back to London) in fact, I find it hard to practice my French as contrary to my last holiday there every French person I came across switched to English the second I had problems finding the right word, or butchered their language too much (my French teacher used to say that the one thing you should always make sure to get right in France is the sounds - if you pronounce things correctly you'll get away with almost anything - so far I think she's been right)
Where to begin!? (Score:5, Insightful)
Your post is so reactionary and simple-minded that it certainly seems to have been written by an American, short on rationality as it is. In fact, in the last day or so /. has had several posts like yours modded up because they say absurd things such as the high cost of oil is due in part to the restrictions on domestic drilling.
If you think the US economy is in the shitter because of environmental protections you are an embarrassment to the genetic legacy your ancestors have bequeathed you.
The US economy is in the craphole because of the massive debt that has been leveraged against insolvent debtors. This came in the form of the mortgage crisis and its effects have reverberated and multiplied through the banking system. This has led to a crisis in commercial credit which has taken away the ability of consumers to fuel the economy which further erodes the ability of the banking system to maintain solvency. The causes of the credit crisis caused by the tanking of the mortgage system has not yet finished and we are likely to see much worse before it stops.
Regarding the offshoring of manufacturing and environmentalism, the real impact of environmental legislation in the United States is not to preserve non-human species, but to protect humans themselves. Look at the places where mining companies, steel refineries, chemical manufacturing plants, and pulp mills have operated and what you'll find are poisoned water tables and insanely elevated cancer rates. Additionally, the relative low-production of minerals from mining is due mainly to evisceration of the lands where valuable resources once existed, not due to the governmental restrictions on development.
For you to say something like "the tree huggers over her taking so much power" is laughable. Opening all the protected lands in the US would to natural resource exploitation do virtually nothing to fix the GLOBAL ECONOMIC CRISIS let alone the paltry problem of the US economy stumbling against the stronger European economy. The kind of neanderthal thinking that bad economic times can generate amongst people is amazing and your post is an example of such stupidity.
Environmentalism has not caused the US economic crisis. Bad banking practice has.
Re:Oh the humanity (Score:4, Insightful)
Okay, now this might be kind of hard to understand, but just imagine for a minute that the communist/liberal/homosexual/tree hugger conspiracy doesn't exist. Instead, try and think how people live in other parts of the world, specifically what most people call the 'developing world'. Have you considered how wages and living standards might differ in the 'developing world'? You do realize that the vast majority of labour intensive industrial operations (such as steel) tend to requires very little skill? So why the hell would anyone want to setup a still mill in the US when you can do it for a lot cheaper in some other part of the world.
Let me give you a more concrete example. In Ukraine (its a country in Europe, it has a pretty highly educated workforce and a pretty large industrial base), a salary of $20K is considered pretty damn good, especially if you live outside the capital Kiev. And I am not talking about some shitty job in a steel mill, even a management position with a $20K salary is considered pretty good. Now what do you think an average American still mill worker gets paid per year? is $35K a fair estimate? So why shouldn't business simply setup shop in Ukraine, spend a little bit more on transportation and save the bunchload of cash.
I know that it's easy to make up excuses about the tree huggers ruining everything, but unfortunately sometimes you have to use your brain and think straight. Industrial production is never coming back to the USA! Not unless Americans are going to accept Bangladesh style wages/living standards.
And what power are you talking about? The power to make you sound retarded? You live in America, you have one pro-business party that has a fascists/right wing and another socially liberal/centrist wing.
Right wing armchair economists are such a laugh. Though I guess I shouldn't be laughing, crying would probably be more appropriate.
If you want to look for the real reason behind Nintendo's decision, I suggest you read up on interest rates. You might learn some interesting things that you never knew about, like how the fed essentially bails investors whenever they fuckup which leads to retarded behavior (among other things that contributed to current economic instability).
Re:Oh the humanity (Score:5, Insightful)
I disagree with this argument for a couple of reasons. First, the assumption is that conservation is somehow altruistic. It isn't. Having a healthy environment is a selfish thing. It means that you don't have to worry about the air or the water making your children sick. It means you can hunt deer, catch fish, and grow vegetables in your yard and actually eat them. It means you can eat sushi whenever you want. It means being able to take your family out for a walk and being able to show them something besides a strip mall. Fuck the owls, I want the environment saved for me and my kids.
Second, I disagree with the idea that raping the environment is the way forward. It's a short term solution. Unquestionably, cutting down all the redwoods would create a few jobs and make some money, but once you'd finished, you'd be right back where you started. The way forward is investing in infrastructure, technology, and education. Lay down broadband, improve the quality of our primary and secondary education, make college education affordable for any kid who works hard in high school. Invest in alternatives to oil- you'd simultaneously help reduce our dependency on mideast oil and create a product the rest of the world would want to buy. Build more mass transit, which would create jobs, reduce energy consumption, and provide the infrastructure to help the economy grow. It's not a situation of having a liveable environment or a good economy; we have to try for both.
On the contrary ... (Score:3, Insightful)
Re:Oh the humanity (Score:5, Insightful)
Other parts of the world with strong economies have IP laws that are just as strong as in the US and are doing fine.
It is all about unwise fiscal policies that are resulting in the decline of the dollar.
Re:Oh the humanity (Score:2, Insightful)
On the bright side...well, maybe some of those industries will come back, but, that takes time...and with all the tree huggers over here taking so much power...it still may not happen.
I like a nice clean world too...but, strike a balance guys....if it comes to the US failing, and a couple of spotten owls, I'll feel sorry for the owls, but, I gotta say humans and our needs take priority.
Nintendo could just increase the price in dollars, but evidently they think they can make more money this way. Maybe they are afraid to lose the "affordable console" label in people's mind.
This has nothing to do with essential items; they will be shipped to the US, because they will be bought regardless of the price.
I don't like tree huggers too, but I think we are a long way to go before we reach the "human needs vs spotten owls" stage. Now it feels much more like "human fabricated wants vs cities with clean air".
Re:With the US dollar this weak... (Score:2, Insightful)
That people are willing to pay more in the Euro zone is why they are sending the units there. It costs $90 and 90 Euros. Given the relative exchange rates with the yen, people are paying the equivalent of $140 for the game in Europe. If people were willing to pay $140 in the US, the weak dollar wouldn't be bothering Nintendo any.
Re:Oh the humanity (Score:3, Insightful)
How about gas turbines and jet engines (to name 2 off the top of my head)? Oh, they don't sell those in Walmart, so that does not count...well, I concede, America does not make anything.
Re:Oh the humanity (Score:5, Insightful)
In a post that is riddled with historical inaccuracies and plain daft statements, this stands out:
"Of course, typical Americans; cleaning up after europe shits all over the place. Abolishing slavery."
WTF? That's a party you were particularly late to (just like both World Wars). You might want to check on the dates for European countries abolishing slavery (hint: generally before you). And as for reinstating civil rights, of course you remember what happened about 40 years ago, right?
Congratulations on making yourself look like an ass and giving your fellow Americans a bad name.
Re:Heh. (Score:3, Insightful)
I grew up in a suburb of NYC, and have spent the last year living within biking distance of downtown Boston. The thing isn't that I hate suburbs specifically. I am a huge supporter of the ability to choose family-friendly suburban life over city-living.
Re:Bah Humbug (Score:2, Insightful)
Re:Oh the humanity (Score:5, Insightful)
As far as Isreal, I didn't hear the US object to giving them the land and it's the US that defends Isreal these days more than anyone else.
Going after Iraq for 9/11 isn't cleaning up after Europe. It's making an excuse for Jr to do what daddy didn't do. Though Bush senior, in general, while being called a wimp was more sensible and at least was leaned more to being a sensible republican. It was he who helped make businesses accomodate people with disabilities. Just as Nixon made an attempt to help the environment with creating the EPA.
Since the Clinton era, the republican party has really gone to hell. In fact US politics in general have gone to hell. That's what's hurting the US more than anything and it makes me glad I've moved out of there years ago.
Re:Repeat after me... (Score:4, Insightful)
Basically what it all boils down to is who has the economic growth, who has the money to support a large military, who has the money to buy off locals, and who has a compelling alternative government. A century and half ago, the powers were Spain and England. England had everything except cash and economic growth. Mosty people were kind of happy with the english way of life, and england had military power. However, due to england's lack of cash, it had to borrow money from the colonies, which meant that England was no longer a free agent. When you owe someone lots of money, you are no longer your own person.
My main disagreement with the article is that the US has been in a real position of power for 100 years. We had some success in the early 20th century, but we never made it to international status due to the robber barons which put us in a hole that we did not crawl out of until the 50's, but not really until 70's. At this point we have had two solid generations of superpower status. We are not leaders in economic growth, and the middle class which used to defined growth is becoming non existent. The weak dollar is just making the middle class even smaller. Now, the government and the populous has to borrow,and who are we borrowing from, the chinese.
One thing I heard about england is that it was not growing economically, and this what caused the loss of power. While the us is, we do not seem to be growing in such a way to increase spending and consumption. Those with median income and below has seen almost no growth in income over the past 40 years. Those with top 20% of income has seen their income jump 30% or more. Unless the economy is being based on yatchs and butlers, this is not a way to build a broad based economy.
So the way to fix the economy is socialization. Spend 2 trillion a month on a war. Create new redundant departments to spend more money. Pump money into the economy be giving away cash. Don' bother with structural changes, don't worry about money that can't be paid back, just socialize, just like britain.
Of course it is not the weak dollar that is the issue. It is the lack of discretionary income. It is the the fact that we are soon going to owe 40% of debt to foreign agents, who are now free to call us for favors, and we can no longer pressure. These facts put us back a pre-super power standing. What were the issues? Growth? We aren't on top. Debt? We owe everyone. Cash? We have none. Military? The F-22 is our cool jet, but the f-35 is yet to be built, and everything seems to be ineffective against kitchen table IEDs. The weak dollar is not the cause, but it is a symptom. We need to get serious about innovation, and serious about true fiscally conservative values.
Re:Language barriers (Score:3, Insightful)
Re:Oh the humanity (Score:4, Insightful)
The problem is not the USA, not really. The problem is the culture of entitlement that the automotive cartel fostered in the 1940s, 50s, and 60s. They could charge whatever they wanted for cars, since they were about the only game in town (back then, if you wanted an import, it was a Rolls or a Ferrari, and at that point you don't care about price anyway). They made up for this by giving obscene benefits packages for employees, and in the 70s when Japanese imports started to outdo in price and efficiency, they stupidly agreed to even more boneheaded benefits packages for people who got laid off.
If they had the balls to say to the UAW, "You know what? From now on, you're getting fair wages for the work you do for us and only current employees get benefits," they wouldn't be so hard up. But there's too much of a culture of failure among management, and the UAW would throw a hissy-fit strike if they tried it.
It really boils down to the need for nationalized healthcare. If we had that, this whole problem wouldn't exist.
which state? (Score:3, Insightful)
Which State is this?
Why do people confuse "England" and "United Kingdom" so much and use the terms interchangeably? (for your own health and safety, please don't make this mistake when visiting Scotland/Wales/Northern Ireland)
Curious... thanks in advance...
Re:Oh the humanity (Score:5, Insightful)
Get over it. He was your biggest ally for decades. The fact that you lost control of him is your own stupid fault.
Bullshit. It was the US doing the testing. Saddam merely used what the US gave him.
So? Go and invade Israel if you're so concerned about UN human rights charters and resolutions.
WTF?
That's quite a simplistic view. I forgive you, considering your other way-off statements so far. Communists HAD taken over Vietnam, and had MASSIVE backing from the population. That's no reason to invade and carpet-bomb the place with napalm and chemical weapons ( the same weapons you were just crying about Saddam using ).
Hardly. It's more like MAKING all the shit and expecting everyone else to call it flowers.
Oh fuck off. The US was built on slavery, and the remnants of it are still very much alive today. Abolishing monarchies? What do you call George Dubya, commander in chief? What's the point of abolishing something and replacing it with the same thing, but a different name? Why not try some democracy instead? Huh? And as for cleaning up the mess in the middle east, I believe you're FUCKING up the middle east. You must have a pretty warped idea of what's going on over there. You're American, right
Re:which state? (Score:2, Insightful)
Also, for the same reason people called roads "roads" and turnips "turnips": Because that's what people in our society do. It's not intended as a slight against the Scots, the Irish or the Welsh, but it's merely the convention.
Re:Oh the humanity (Score:5, Insightful)
Largest? (Score:4, Insightful)
Wiki indicates that there are approximately 495 million people[1] within the borders of the EU member states.
So America is not really "their largest market". The conversion rate is much more in favor of the EU residents.
We'll get our Wii Fits eventually, but only after people whos dollars are worth more than ours.
[1]http://en.wikipedia.org/wiki/European_Union
Re:Oh the humanity (Score:3, Insightful)
There are plenty of reasons to be concerned about China, but neither of those are one of them.
Re:Bush (Score:3, Insightful)
Wealth isn't money - wealth is money changing hands! Any money that's just sitting around is a net drain on the economy, and makes it harder for the central banks to manage things. Money must be invested to be useful - even a savings account is useful.
Besides, inflation hurts the rich way more than the poor, as long as the minimum wage is adjusted properly. That it hasn't been doesn't mean the whole idea is bad.
Re:Their Largest Market...? (Score:3, Insightful)
Re:Language barriers (Score:2, Insightful)
Re:8 Trillion in debt, it's a no brainer (Score:4, Insightful)
I can't even f#$%ng remember when I last saw gas that cheap in Europe and / or Israel. Think about it. That's roughly a dollar
And if you still think gas prices are too high, I got one word for you: Compact. The rental agency had a "mid-size" for me. A chevvy impala which could house a small indian tribe. Compact in the US is a mid-size family car everywhere else.
Not happy with the gas price? Don't buy a four ton truck that guzzles five gallons to the mile then. If all of y'all would invest less in pick up trucks with "In God we Trust" stickers on the back, you might find your gas prices quite agreeable.
Damn fools.
simply because (Score:1, Insightful)
That's not "simply", that's real life. Just as like so large speculations have begun in the raw materials and oil businnesses when the USD began to weaken - and it still goes on - this is also another proof that shows that one by one, everyone is beginning to transition to the euro from the usd, which is really not such a bad thing, if you think in global terms and not just in what is the best for the US terms. It's high time the US started paying normal prices for the humongous amounts of gas they eat up (trucks and DoD/Pentagon included) and see what happens when not everything goes how they would like it to go.
Re:Oh the humanity (Score:3, Insightful)
If you're suggesting the government should pay her for full-time parenting for a year, I'd say that would be worth considering. However, people usually want employers to do it. Why should it be their responsibility to pay her for a year to not work (for them)?
when she goes back to work, the wages she earns will be about 70% of a males' wage
Probably less. It's women taking time off for childrearing that are bringing down the average, and you only get to the 70% by factoring the higher wages of women who don't do that.
This is indeed sexism, but it's not from the employers; it's from individuals and their own views of women's and men's places in the world. Until men are sacrificing their careers for their children at the same rate as women, it's going to stay that way. The only thing I'd say is unjust from the employer side is when they assume a woman is going to put them second behind her children or want maternity leave, and she has no intention of having kids, or her husband will be doing most of that work.
Re:Where to begin!? (Score:1, Insightful)
Environmentalism has not caused the US economic crisis. Bad banking practice has.