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Posted: 11/28/2007 2:59:37 PM EDT
On September 28, for the first time in 30 years, the Canadian dollar closed above $1USD. It's been worth more than the US dollar ever since.

The Euro is now worth $1.48, and it's rising.

OPEC right now is discussing plans to change their currency reserves to the Euro, after keeping the dollar in reserve since their founding, more than 30 years ago.

Several banks and governments are now changing their treasury reserves from U.S. treasury bonds to that of other countries.

This year, we're running a current governmental deficit of over $400 billion dollars this year...about equal to the amount of funding approved to be spent in Iraq. We must issue Treasury bonds to cover this deficit, but most of it will be covered this year by printing money, forcing the depreciation of the currency.

Why is it that no one is making this an issue in next year's election? How come no one seems alarmed about this?

It seems imperative to me to get this dollar depreciation under control. If I have to choose one issue to vote on this year, it's this one. The only option we have, the way I see it, is to reduce spending to acceptable levels that we can cover with revenues. And this means ending the wasteful military spending that's going on overseas right now, and you know exactly what I'm talking about. Frankly, this is more important to me than any nebulous benefit from killing "insurgents" or "terrorists," most of which aren't financially supported enough to afford shoes, much less a plane ticket to America. I don't want to live in a world where a loaf of bread costs $7 or a tank of gas $100. Inflation is a tax on the poor, who have to spend most of their income.

But that's just what I think. What do the rest of you have to say about this?
Link Posted: 11/28/2007 3:05:55 PM EDT
actually we could just drop all aid to other countries since we are the great satan anyway. Save those tax dollars for use here in our own country.
Link Posted: 11/28/2007 3:11:20 PM EDT
The Euro will come down. It appears they are feeling pressured to lower their interest rates. Some say they would have already if not for German pride.
Link Posted: 11/28/2007 3:36:53 PM EDT
But we've seen 3/4 point interest rate cuts in the US dollar over the past 3 months and more are probably on their way. This is going to cause a further fall in foreign demand for the US dollar as foreign investors pull their money out of US securities in favor of higher interest rates elsewhere worldwide. I don't think any modest cuts in the Euro interest rate are going to affect the sliding dollar.

Link Posted: 11/28/2007 3:39:04 PM EDT
Ron Paul is concerned
Link Posted: 11/28/2007 3:52:33 PM EDT
http://www.moneycafe.com/library/prime.htm

Looks like we've still got some room to play with.

A quick check of the news shows Canada, the UK, and Germany are all considering interest rate hikes.

The problem is not the interest rates, it is the relative difference in interest rates between the US and our traditional trading partners. Our economy is experiencing slow growth first. Our money becomes less valuable in relative terms, which means our goods and services become cheaper overseas. That puts downward pressures on their economies, which are slowed. They lower their interest rates and the relative difference disappears.
Link Posted: 11/28/2007 3:55:22 PM EDT
Wall Street isn't living on a fixed income that is adjusted according to the fictional CPI.

...and Geezers (as represented by the AARP) don't have a clue.
Link Posted: 11/28/2007 4:26:04 PM EDT
height=8
Originally Posted By dport:
The Euro will come down. It appears they are feeling pressured to lower their interest rates. Some say they would have already if not for German pride.


Wrong. The dollar is dropping against the GD ruble, for God's sake....

The dollar is going down because of reasons discussed in this forum before.....and denied by Republican Pollyannas who are either delusional or have their fingers in their ears and their eyes shut...while screaming, "NANANANANANANANANNAN!"

Ideologue statists and hardcore Repubicruds are not interested in the economy....after all, America is the ".....greatest, freest, most prosperous country on Earth..."

Yeah.....right......
Link Posted: 11/28/2007 4:47:56 PM EDT

Originally Posted By Telecasterman:

Originally Posted By dport:
The Euro will come down. It appears they are feeling pressured to lower their interest rates. Some say they would have already if not for German pride.


Wrong. The dollar is dropping against the GD ruble, for God's sake....

The dollar is going down because of reasons discussed in this forum before.....and denied by Republican Pollyannas who are either delusional or have their fingers in their ears and their eyes shut...while screaming, "NANANANANANANANANNAN!"

Ideologue statists and hardcore Repubicruds are not interested in the economy....after all, America is the ".....greatest, freest, most prosperous country on Earth..."

Yeah.....right......


You're not as smart as you think you are.

The Brits talking about lowering their interest rates, and the subsequent fall of the pound vs the dollar.
http://www.bloomberg.com/apps/news?pid=20601102&sid=aTWwm3Tj8nXw&refer=uk

The Canadians talking about lowering their interest rates:
http://www.570news.com/news/business/article.jsp?content=b112850A

The Germans talking about lowering their interest rates:
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-21280908.htm

Markets are cyclical. It has been a while since we've seen a downturn. They happen and then the markets recover. It is the way of things. Get used to it. Learn it, love it, learn to take advantage of it.



Link Posted: 11/28/2007 7:41:46 PM EDT
[Last Edit: 11/28/2007 7:45:18 PM EDT by Telecasterman]
height=8
Originally Posted By dport:
height=8
Originally Posted By Telecasterman:
height=8
Originally Posted By dport:
The Euro will come down. It appears they are feeling pressured to lower their interest rates. Some say they would have already if not for German pride.


Wrong. The dollar is dropping against the GD ruble, for God's sake....

The dollar is going down because of reasons discussed in this forum before.....and denied by Republican Pollyannas who are either delusional or have their fingers in their ears and their eyes shut...while screaming, "NANANANANANANANANNAN!"

Ideologue statists and hardcore Repubicruds are not interested in the economy....after all, America is the ".....greatest, freest, most prosperous country on Earth..."

Yeah.....right......




You're not as smart as you think you are.

The Brits talking about lowering their interest rates, and the subsequent fall of the pound vs the dollar.
http://www.bloomberg.com/apps/news?pid=20601102&sid=aTWwm3Tj8nXw&refer=uk

The Canadians talking about lowering their interest rates:
http://www.570news.com/news/business/article.jsp?content=b112850A

The Germans talking about lowering their interest rates:
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-21280908.htm

Markets are cyclical. It has been a while since we've seen a downturn. They happen and then the markets recover. It is the way of things. Get used to it. Learn it, love it, learn to take advantage of it.





Oooo ...a little dig there.....

The mistake you and others make is to extrapolate from prior models to the present. When you encounter a contradiction, you'd better re-examine your premises.

Notwithstanding anything to the contrary, YES, markets are cyclical...just as there are inevitable boom and bust cycles in biological populations....BUT, the current times do not present the variables and constants that would allow SOLELY the readjustment you speak.

You, rather, are not as prescient (smart?) as you would like others to think...hope
There's a cold wind blowing....and it' AIN'T just winter....
Link Posted: 11/28/2007 8:00:55 PM EDT
Link Posted: 11/28/2007 8:03:44 PM EDT
[Last Edit: 11/28/2007 8:04:23 PM EDT by IAMLEGEND]
If the OPEC countries ditch the dollar as a reserve currency we'll be in much deeper shit. Fortunately they have such incredibly large holdings of US$ that would devalue cash they have in hand so they ought not want to do that.
If they unload lots more US$ doing stuff like the Citi bailout I'll be more concerned.
Link Posted: 11/29/2007 3:37:00 AM EDT
People aren't concened because "it can't happen to us".


GR
Link Posted: 11/29/2007 4:34:05 AM EDT

Originally Posted By Telecasterman:

Originally Posted By dport:

Originally Posted By Telecasterman:

Originally Posted By dport:
The Euro will come down. It appears they are feeling pressured to lower their interest rates. Some say they would have already if not for German pride.


Wrong. The dollar is dropping against the GD ruble, for God's sake....

The dollar is going down because of reasons discussed in this forum before.....and denied by Republican Pollyannas who are either delusional or have their fingers in their ears and their eyes shut...while screaming, "NANANANANANANANANNAN!"

Ideologue statists and hardcore Repubicruds are not interested in the economy....after all, America is the ".....greatest, freest, most prosperous country on Earth..."

Yeah.....right......




You're not as smart as you think you are.

The Brits talking about lowering their interest rates, and the subsequent fall of the pound vs the dollar.
http://www.bloomberg.com/apps/news?pid=20601102&sid=aTWwm3Tj8nXw&refer=uk

The Canadians talking about lowering their interest rates:
http://www.570news.com/news/business/article.jsp?content=b112850A

The Germans talking about lowering their interest rates:
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-21280908.htm

Markets are cyclical. It has been a while since we've seen a downturn. They happen and then the markets recover. It is the way of things. Get used to it. Learn it, love it, learn to take advantage of it.





Oooo ...a little dig there.....

The mistake you and others make is to extrapolate from prior models to the present. When you encounter a contradiction, you'd better re-examine your premises.

Notwithstanding anything to the contrary, YES, markets are cyclical...just as there are inevitable boom and bust cycles in biological populations....BUT, the current times do not present the variables and constants that would allow SOLELY the readjustment you speak.

You, rather, are not as prescient (smart?) as you would like others to think...

I certainly hope I don't have to post link after link to demonstrate how the present weakness of the dollar is based upon factors other than offered interest rates or the reflexive interest rates of other currencies. The weakness of the dollar TODAY and in the future is, and shall be, based upon CONDITIONS, not simply variables, conditions not subject to simple adjustments as interest rate changes. The inherent weakness of the U.S. economy is no longer some secret subject the bullshit Bernanke and others are bloviating about. When Citibank is on the ropes that is a good indicator. You also might want to take a look at the sales figures of R.V.s...no, I'm not joking....I say that almost tongue-in-cheek, but that product and it's market are an indicator of things to come....I hope you can make the extrapolation to an additional level of abstraction.

There's a cold wind blowing....and it' AIN'T just winter....


Oh brother. I won't waste my time.

Link Posted: 11/29/2007 10:16:36 AM EDT
height=8
Originally Posted By dport:
height=8
Originally Posted By Telecasterman:
height=8
Originally Posted By dport:
The Euro will come down. It appears they are feeling pressured to lower their interest rates. Some say they would have already if not for German pride.


Wrong. The dollar is dropping against the GD ruble, for God's sake....

The dollar is going down because of reasons discussed in this forum before.....and denied by Republican Pollyannas who are either delusional or have their fingers in their ears and their eyes shut...while screaming, "NANANANANANANANANNAN!"

Ideologue statists and hardcore Repubicruds are not interested in the economy....after all, America is the ".....greatest, freest, most prosperous country on Earth..."

Yeah.....right......


You're not as smart as you think you are.

The Brits talking about lowering their interest rates, and the subsequent fall of the pound vs the dollar.
http://www.bloomberg.com/apps/news?pid=20601102&sid=aTWwm3Tj8nXw&refer=uk

The Canadians talking about lowering their interest rates:
http://www.570news.com/news/business/article.jsp?content=b112850A

The Germans talking about lowering their interest rates:
http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-21280908.htm

Markets are cyclical. It has been a while since we've seen a downturn. They happen and then the markets recover. It is the way of things. Get used to it. Learn it, love it, learn to take advantage of it.


Indeed markets are cyclical. In the short term the thing that is devalued are our savings and our labor which are expressed in dollar amounts per hour. This will correct itself in the long run as as pay is increased and contracts expressed in dollars are changed to other more stable currencies or changed to reflect the price of the dollar. The rate of the dollar against other currencies is far less important than the value of the dollar against commodities in the short term. Ideally this market correction should be paid for by those banks that made reckless choices in whom they load their money. Since the government has bailed them out with easier access to fiat money at a lower interest rate, the correction will not happen. An example might be made if you and I went the horse track and I told you that I would cover all your losses and that you could keep your winnings. How would you bet? I am not implying that the government ought to bailout the small lender that can't pay his bills. The government should take the same line with big institutional lenders that it takes with you and me. They should allow the correction to be made or the market will suffer these same results faster and with more negativity next time.
Link Posted: 12/3/2007 6:33:29 PM EDT
All americans are deceived and brainwashed and dont know anything about whats going on in our goverment. Just dont be like them. Your on the right track
Link Posted: 12/3/2007 6:42:38 PM EDT
If the US stopped giving so much away and focused on ourselves for a change we would be better.
Corporations like cheap labor we need to bring manufacturing back to the US.
Kick out illegals and end free trade.
Link Posted: 12/3/2007 8:13:26 PM EDT
God forbid we cut spending, quit printing money (inflating the economy), and go back to a Constitutional basis. The dollar might actually be worth something.
Link Posted: 12/3/2007 10:09:54 PM EDT
height=8
Originally Posted By john575:
... we need to bring manufacturing back to the US.


Wont a low value dollar help bring manufacturing back?
And no I don't like that the value of the dollar is low.
Link Posted: 12/4/2007 9:04:37 AM EDT
[Last Edit: 12/4/2007 9:05:03 AM EDT by Bangz]
Manufacturing is declining because we have corporate tax rates now higher than in Europo. As a result, labor is going to be outsorced to a cheaper venue and companies will closely examine tax havens maintaining favoranble tax treaties with the US mainland. The gub'mint aint managin good these days.
Link Posted: 12/4/2007 11:15:06 AM EDT
You just see the surface, look deeper. You have to watch "The money masters" on google video. Every thing is contrived like the crash of '29 by design to transfer the wealth from the poor to rich. If you have a fiat money system it is doomed to failure. The design here is to move to a one world monetary system. You will be convinced we need an amero (north american treaty combining U.S., Cananda, and Mexico) because of our dollar crisis. Then they will move to combine the European Union, with our North american union, etc. towards one single monetary system. Your money is worthless and has the same true value as monopoly money- none. Gold and silver are true vehicles for use as money because you cant physically expand the supply (debaseing their value). The Federal Researve creates money from thin air, loans it to the government (who could create themselves) and charges intersest on this. Your income tax was non-existant before 1913 and realistically before 1930 and has never been legally enforced. If you ask the IRS to show you the law that allows them to tax your labor they will refuse. What would your world look like if you paid no federal taxes (all of which go to the Federal Reserve-private bankers) and gold was still $20 an ounce (currently $800 an ounce). My bet is there would be a far happier, less work slave attitude and the common man would be far better off. Look deeper into it.
Link Posted: 12/5/2007 9:21:47 AM EDT
Oh I think a recession is coming. The current credit crunch may trigger it, or it may blow over for a while, but a recession is coming. It will be worsened by inflation this time too, because we are printing money to pay for federal budget over runs. The only plus side of the weak dollar is that manufacturing again becomes attractive here. Apparently Airbus as starting to make noise about moving assembly plants here. Still the next 2 to 3 years will be rough. Long term, its anybodies guess. We are entering into a new world with uncharted trails, with china and india becoming the new big players. We can still be competitive if we are carefull.
Link Posted: 12/5/2007 12:46:57 PM EDT

Originally Posted By Machinist:

Originally Posted By john575:
... we need to bring manufacturing back to the US.


Wont a low value dollar help bring manufacturing back?
And no I don't like that the value of the dollar is low.



Outsourcing unskilled jobs saves the consumer money thus it will keep happening. If you want business growth and financially viable manufacturing in the US reform the tax system and do away with the income based tax system.
Link Posted: 12/5/2007 12:54:40 PM EDT
The Fairtax will bring skilled manufactoring back to the U.S. Infact most companies that moved their headquarters out of the U.S. will want to move back and job growth will boom at record levels.
Link Posted: 12/5/2007 8:26:12 PM EDT
[Last Edit: 12/5/2007 8:27:48 PM EDT by OddballAZ]

Originally Posted By Telecasterman:

Originally Posted By dport:
The Euro will come down. It appears they are feeling pressured to lower their interest rates. Some say they would have already if not for German pride.


Wrong. The dollar is dropping against the GD ruble, for God's sake....

The dollar is going down because of reasons discussed in this forum before.....and denied by Republican Pollyannas who are either delusional or have their fingers in their ears and their eyes shut...while screaming, "NANANANANANANANANNAN!"

Ideologue statists and hardcore Repubicruds are not interested in the economy....after all, America is the ".....greatest, freest, most prosperous country on Earth..."

Yeah.....right......



Exactly. This is brought on by drinking excessive amounts of Kool Aid mixed by Sean Hannity, Glenn Beck, Mark Levin and other fake Republicans.
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