Dollar continuing to fall in value: Is this dire?

Post Reply New Topic

There has been news the past few days about the dollar continuing to fall in value. A lot of people are predicting doom and gloom (i.e. start growing food, buying water, etc.)

Are these people just alarmists or are we really in trouble?

*shrug*


everything falls eventually. I personally think some good changes will happen in response once the dollar becomes totally obsolete.

The principal effect of a lower dollar is that transactions denominated in foriegn currency become more expensive.

Over time, the value of all those cheap goods at WalMart is going to increas. But the cost of all of those goods and services that you export will tend to decrease, making them more competitive (or giving exporters the opportunity to increase prices).

Nope, all is going as planned.

I do fear, and honestly, that the USA may be on the cusp of an inflation similar to what Mexico and Brasil went through during the 1980s. The current regime here has zero sense of fiscal discipline and is facing promised social program obligations of unimaginable size that have been accumulating since the 1930s (think: several times the World's entire total net wealth).





Mike

Check out this site http://thecomingdepression.blogspot.com/ or Google "Gerald Celente"

You win some you lose some. If the dollar goes down it will help American exports and make imports more expensive.

Let's say the dollar fell 50%. Then imported cars would be twice as expensive and everyone would buy American made cars which would be good for the country.

The declining Greenback is good news for purchasing items in the USA.The $A reached $US0.9918 so it makes it very attractive to buy and import stock from USA to Australia.

ABC news says that the cause of it is that international governments etc have diversified their bonds and many switched to euro's and pounds...thus making the dollar less valuable. According to ABC, the worst thing that could happen to the dollar is that saudia Arabia would no longer accept dollars for oil, but only euros...that would collapse the dollar. The Saudi's said that they would not do that as long as we continue to supply them with arms.

The dollar has always been falling, a 1960 silver dime is now $2.

All of our debt is no longer in bonds, now we just print money.

Japan is trying to lower the Yen, all export countries want lower value money.

It is the only way we will ever pay down the debt, The only way houses will ever be worth the mortgage, the only way pension funds will make their numbers, downsized dollars.

At two for one it kinda works, as long as everyone works for the same pay. All of savings, assets, become worth half,

The real problem is declining buying power, even for cheap imports. Not that anything bought would help us, nothing is made here,

Paying down debt is the best use of cheap money. What is good for the people is bad fo the economy.

I also read that the buying power of the dollar has declined because our money is not backed by gold anymore, plus the feds keep printing more and more money which makes the dollar worth alot less. I suggest we start growing our own food. Grain prices have shot up across the board: corn, soy, wheat, oats, barley....also fill up your tanks, gas is about to rise because of the reduction in the dollar's buying power

Buy gold. I've made over 100% since 2005-ish.
If you really must buy stocks, make sure to buy shares in Dollar Stores, prisons, and weapons makers.

Productivity per worker has increased by many times since the 1930s... this idea that there's some demographic disaster around the corner is a false one. The American banks are trying to do the "carry trade" to "earn their way out of debt" as the Japanese banks did. The carry trade causes the currency to lose value. Another method of "earning their way out" is for the banks to get into tax farming which is a deal that goes like this. Someone falls behind on taxes so the jurisdiction sells the tax debts to Wall Street. Wall Street takes a $200 debt, then declares that now that they have this $200 debt certificate that they're entitled to another $1,500 for their trouble (they're allowed to do this!) Then they charge 18% interest and the debt balloons and balloons until they seize the person's house. This is the kind of practice that led to the decapitation of Louis XVI.

The carry trade works like this. Wall Street borrows at 0.5% and then takes the dollars and changes it into Brazilian reals and buys Brazilian bonds that have a much higher interest rate. The Brazilians are defending against this with a tax on foreign bond purchases. As a result the major rackets are demanding the defeat of President Lula's successor and the victory for the opposition devoted to neoliberal pillage.

The American carry trade is a new phenomenon. Japan was executing the carry trade through recent times thanks to the disastrous Plaza Agreement of 1985 that American leaders want to force on China right now. In the end, it's about a reluctance that banks take any kind of losses whatsoever, instead they want the banks to bleed everyone dry as much as possible.