Sound Politics: Boeing and Airbus rack up the orders, but...

November 24, 2007

Boeing and Airbus rack up the orders, but...

...the dollar's decline is wrecking havoc with Airbus's bottom line since planes are sold in dollars but most of the company's expenses are paid in euros. Amidst the tumult, both aerospace companies are indeed having stellar years for their order books.

Beyond the impact of the dollar on Airbus's operations, note the earnest denials of economic reality coming from company's industrial unions. Not to say Airbus's business model doesn't have faults, but such rhetoric from organized labor in the face of real problems sounds a lot like the experiences of our own domestic auto industry.

Posted by Eric Earling at November 24, 2007 03:13 PM | Email This

Comments

1. I think the worst job in the world must be President of Airbus.

Posted by: Walters on November 24, 2007 06:02 PM

2. The guy probably has four months of vacation, authority to direct traffic to his kids consulting businesses, a full-ride pension, etc.

It probably isn't a complete sinecure, but... why be worried with all your future bases planned out?

Posted by: Al on November 25, 2007 02:20 PM

3. I have so many friends who just read headlines and don't study these issues who are so down on America, and the "weak dollar" meme is just fuel for their pessimistic flames. I keep having to explain that the dollar is "weak" (in a sense) but it is also, more accurately, "cheap." And a cheap dollar means American goods and services are on sale, bargain basement prices! That drives down the trade deficit and is going to pump tons of money into WA, which is so trade dependent. I hope the dollar keeps getting "weaker" because, despite what everyone assumes, their is a built-in floor to it. There will come a point when the dollar is so cheap that it will become attractive. Even an ugly sweater has a price-point. People will snap it up and it the rebound will be swift.

Bottom line: THE MARKET SOLVES EVERYTHING.

Posted by: AD on November 25, 2007 08:48 PM

4. I hope Sarkozy sticks his ground with respect to the unions.

Heard a story where 50 years olds are entitled to full bennies and salary as a retirement perc. That is 50 as in 50 years old as retirement age. That is why the unions are on strike.

My source also says that France is entering an age of fewer and lower taxes, quite unlike our local socialists.

Posted by: swatter on November 26, 2007 07:14 AM

5. We need sound money. Since the government can always print more of it, it will always have an incentive to do so. The result is inflation, which hurts the poor and middle class. It amounts to a tax on the poor, to benefit the rich. Revearse Robin Hood. Greenspan did a pretty good job of keeping inflation in check, but Iraq war spending and other Republican profligacy has undermined the dollar.

Power corrupts, and we have given incredible power to the Fed. This is why Clinton had Greenspan, who he hated, stand next to him at his inauguration.

We need hard currency, that can not be manipulated by politicians. Nixon destroyed the anchor to our currency in '72. Before that, the power of government to inflate the currency was more limited.

Ron Paul is the only candidate who realizes that a firm basis for the dollar is fundamental to the strength and security of the US.

Posted by: Bruce Guthrie on November 26, 2007 01:40 PM