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Price of New Lathes

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Can someone explain the rapid rise of new lathe prices? 4 years ago the lathe of my dreams sold for $2600 and now it's $3900. China is artificially keeping the value of the yuan low, so the price of imports from there is actually low, so that can't explain it. I don't get this.
Dean Center
 
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...China is artificially keeping the value of the yuan low, so the price of imports from there is actually low, so that can't explain it. ...

Despite China's keeping the value of yuan artificially low, the value of the US dollar has fallen in respect to virtually all currencies. Since we don't buy things from China using the yuan, it takes more dollars to buy the same items than it used to. Virtually all the difference in lathe prices you're seeing can be traced to the falling value of the dollar. Last year, about this time, I did a back-of-the-napkin analysis of this question. Virtually all the change in price (for a different shop tool) could be attributed to the change in the value of the dollar.
 

Bill Boehme

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Everything posted before is true ...

Well almost, but not quite everything ...

All the money the fed is creating out of thin air is decreasing the value of the dollar.

The Federal Reserve is an autonomous regulatory agency -- it is responsible for monetary policy which includes, among many other things, setting the prime interest rate. One thing that it does not do is create money ... using rarefied air or any other ingredient.

The price of iron has spiraled upwards worldwide including China -- not just here in the US. Just like oil, it is a finite resource that is rapidly being depleted.
 
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The price of iron has spiraled upwards worldwide including China -- not just here in the US. Just like oil, it is a finite resource that is rapidly being depleted.

Partly true. At least some old iron gets recycled.

Rising standard of living in developing countries, combined with population growth, are also contributing factors.
 

john lucas

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I think one contributing factor is simply, turners will pay it. I'll bet you hard earned money if turners weren't buying 6 to 10 thousand dollar lathes the prices would drop. They build a lathe based on a certain price point. If we demanded lathes at cheaper prices we would get them. They would be made out of sheet metal but someone would meet that demand. When I bought the Powermatic it was more expensive than many cars I had owned. It was also a huge bite in my wallet but I bit the bullet and man was it worth it. It's probably been one of my most pleasurable tools ever. Of course they are almost $1,500 dollars higher now just 7 years later which gets back to the original question.
Remember when a bowl gouge was $39. You can only find the cheaper ones at that price anymore. I saved and saved for my first chuck. It was $129. Well you can still buy them at that price but now they are the bottom of the line.
 
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Well almost, but not quite everything ...



The Federal Reserve is an autonomous regulatory agency -- it is responsible for monetary policy which includes, among many other things, setting the prime interest rate. One thing that it does not do is create money ... using rarefied air or any other ingredient.

The price of iron has spiraled upwards worldwide including China -- not just here in the US. Just like oil, it is a finite resource that is rapidly being depleted.

Unfortunately Bill most people think like you and this is the way the government wants it.

The truth is the US Treasury prints our money for the United States Federal Reserve System which despite its misleading title is a private international banking corporation chaired by Ex-Goldman Sachs executive Ben Bernanke. The Fed creates money out of thin air and manages our monetary policy. The treasury borrows money from the fed and us taxpayers pay the interest through taxes and inflation. Look it up it is easy to verify.
 
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inflation of lathe prices

With all the artistry in wood turning, where it is often hard to see where a lathe has been used, why don't turners turn their own $100 bills??? Maybe AAW can sponsor a contest!!!!Gretch
 
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We will see additional pressure on the prices for all goods as Japan rebuilds. They will consume billions in steel, concrete and wood.
 
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The truth is the US Treasury prints our money for the United States Federal Reserve System which despite its misleading title is a private international banking corporation chaired by Ex-Goldman Sachs executive Ben Bernanke. The Fed creates money out of thin air and manages our monetary policy. The treasury borrows money from the fed and us taxpayers pay the interest through taxes and inflation. Look it up it is easy to verify.

Like on the face of every note where it used to say redeemable in specie, and now says "Federal Reserve Note." Redeemable in ????

As to the price of lathes, there are also few which come sans bells, whistles and fancy electronics any more. I imagine that the iron legs cost less than the controller.
 
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Thanks for the many replies. I think I get it now. Would a lathe be relatively lower priced in Canada, for example? (Hey, it's only a couple hundred miles to that new $2 million crossing station used by 8 farmers)
 

Bill Boehme

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Thanks for the many replies. I think I get it now. Would a lathe be relatively lower priced in Canada, for example? (Hey, it's only a couple hundred miles to that new $2 million crossing station used by 8 farmers)

According to a couple Canadians who I know, the cost of woodworking machinery (as well as a lot of other stuff) costs more in Canada than it does here. Much of the cost difference probably has to do with higher import tariffs in Canada, eh.

... Bill most people think like you ...

Mark, I would be elated if such were the case, but alas that would be too much to hope for. Thanks for the compliment anyway. :D (Hope that I did not take things too much out of context)

It appears that I have been laboring under the misconception that I am somewhat astute in the world of finance, but perhaps it is time to reassess my knowledge in that area.

Anyway, not wanting this conversation to drift too close to one of the two subjects that my mom said that I should not discuss in polite company, I shall heed her admonition.
 
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Thanks for the many replies. I think I get it now. Would a lathe be relatively lower priced in Canada, for example? (Hey, it's only a couple hundred miles to that new $2 million crossing station used by 8 farmers)

Dean
Generally no. I know the owner of one of the sales outlets in BC, he has complained that his costs are generally higher then prices that US outlets pay. Largely because the cost of doing business is higher there.

I have found some better deals on some Teknatool products in Canada then the US, but that's not always true. That was also when the US dollar was setting at about 80 cents to a Canadian dollar, now their dollar is just a touch higher then ours.

While Bozeman is probably not a great hot-bed for used lathes, don't forget that option.

PS, I haven't checked the Cat-Cam lately, starting to look like Spring yet? (I spent 5 years MSU )

TTFN
Ralph
 
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While Bozeman is probably not a great hot-bed for used lathes, don't forget that option.
PS, I haven't checked the Cat-Cam lately, starting to look like Spring yet? (I spent 5 years MSU )
Ralph

We got 7 inches of your kind of snow this week and Bridger Bowl got 16". We're supposed to have a cool and wet April thanks to La Nina. But then, you know that in Montana Spring is the season where the snowstorms get farther and farther apart. (And Summer is the longest time between snowstorms :cool2:)

I think I know every woodturner in the area and I feel like a vulture waiting for somebody I know to get too old to turn.

Dean
 
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Dean
Don't I know it... I saw snow every June I was there, except the year I graduated. But I've seen snow, in Bozeman, every month of the year. I've also seen people sun-bathing next to a snow bank on an 80 degree day.
I also had family that farmed out by Cottonwood Canyon, I lived out there some and worked there while in school.

BTW, I just checked Craigs List and didn't see anything other then a Jet 46-745 (in Missoula) that looked even remotely possible.
 
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Gentlemen - what you are all failing to recognize is that this problem is really an opportunity. The rise in price of wood lathes is exceeding the core inflation rate. That means if you buy wood lathes instead of TIPS, real estate, or other traditional inflation hedges, you will be able to reap a handsome return on your investment. Stock up now before the price increases over accelerate - and unlike gold you can actually do something with your investment!


;)
 
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Bill Boehme

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Gentlemen - what you are all failing to recognize is that this problem is really an opportunity. The rise in price of wood lathes is exceeding the core inflation rate. That means if you buy wood lathes instead of TIPS, real estate, or other traditional inflation hedges, you will be able to reap a handsome return on your investment. Stock up now before the price increases over accelerate - and unlike gold you can actually do something with your investment!


;)

Perhaps you did not notice that you can now trade lathe futures along with pork bellies and soybeans on the Chicago Board of Trade. Categories include prime, mixed, mini, and run of the mill lathes. Be careful in trading lathe futures -- sometimes the market is skewed and you can wind up getting gouged when things start to turn around (apologies to the late Lou Rukeyser).
 
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Perhaps you did not notice that you can now trade lathe futures along with pork bellies and soybeans on the Chicago Board of Trade. Categories include prime, mixed, mini, and run of the mill lathes. Be careful in trading lathe futures -- sometimes the market is skewed and you can wind up getting gouged when things start to turn around (apologies to the late Lou Rukeyser).

Bravissimo!
 
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agreed

The truth is the US Treasury prints our money for the United States Federal Reserve System which despite its misleading title is a private international banking corporation chaired by Ex-Goldman Sachs executive Ben Bernanke. The Fed creates money out of thin air and manages our monetary policy. The treasury borrows money from the fed and us taxpayers pay the interest through taxes and inflation. Look it up it is easy to verify.
[/QUOTE]


Agreed! need more over your way to see this simple truth.
 
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