The US dollar is in serious trouble

[Kibbo]

Why should you care what they say?

Their business report has started quoting the price of the CND$ against the Euro.

 

[IEC]

Let me put it this way... during the 4 years Bush has been President, the Canadian dollar has made significant gains on the USD, and the Euro has surpassed USD in value... not a good thing if you are American...

 

[Infohawk]

The remember when all the American nationalists were laughing about the Euro? "It'll NEVER be as valuable as the dollar" they said...

 

[Vic]

And yet inflation in the US has stayed low, when usually an economy with a sinking currency experiences high inflation. Odd don't you think? Has the Bush Admin been purposefully sinking the dollar (they haven't hid that fact) in order to hide the fact that we're actually experiencing deflation? Just a thought....

 

[Vic]

Originally posted by: Infohawk
The remember when all the American nationalists were laughing about the Euro? "It'll NEVER be as valuable as the dollar" they said...

Today, a Euro is worth $1.29 USD. A Canadian dollar is worth $0.83 USD (a US dollar is only worth $1.20 Canadian today, down almost $0.20 CAD from a year ago).

 

[LordMagnusKain]

this came up recently:

Fact is that a falling dollar, just like a strengthening dollar, tends to balance itself out over time.

V$=> ^ exports => ^ employment => ^ domestic demand => ^ employment
until you run out of land, labor, or capital by which to increase production, then:
^ employment => ^ inflation => V domestic demand => V employment => V$

and such is a simplified market cycle.

 

[Spencer278]

Originally posted by: Vic

Originally posted by: Infohawk
The remember when all the American nationalists were laughing about the Euro? "It'll NEVER be as valuable as the dollar" they said...

Today, a Euro is worth $1.29 USD. A Canadian dollar is worth $0.83 USD (a US dollar is only worth $1.20 Canadian today, down almost $0.20 CAD from a year ago).

Sounds like it is time to cash in all those damn canadian quaters.

 

[Vic]

Originally posted by: Spencer278

Originally posted by: Vic

Originally posted by: Infohawk
The remember when all the American nationalists were laughing about the Euro? "It'll NEVER be as valuable as the dollar" they said...

Today, a Euro is worth $1.29 USD. A Canadian dollar is worth $0.83 USD (a US dollar is only worth $1.20 Canadian today, down almost $0.20 CAD from a year ago).

Sounds like it is time to cash in all those damn canadian quaters.

Pretty soon stores are going to start taking Canadian money again, just like they used to back when I was a kid.

 

[ntdz]

Originally posted by: Infohawk
The remember when all the American nationalists were laughing about the Euro? "It'll NEVER be as valuable as the dollar" they said...

no.

 

[Alistar7]

Dollar has lost over 30% the last years, this is due to our Fed printing more and more money to cover our debt.

We are experiencing INFALTION, which will get much worse. The price of oil has not gone up, the value of the US dollar has gone down......

 

[brxndxn]

I don't see what all the fuss is about... The US is currently experiencing a trade deficit that isn't good for our economy. When the dollar loses to other currencies, the trade deficit will decrease and start to strengthen the dollar again.

Also, with the price of the dollar going down, rich people will be forced to move their money around. When large amounts of money is moved around, it is usually good for the economy in the long-run.

 

[Vic]

Originally posted by: Alistar7
Dollar has lost over 30% the last years, this is due to our Fed printing more and more money to cover our debt.

We are experiencing INFALTION, which will get much worse. The price of oil has not gone up, the value of the US dollar has gone down......

Agreed on the Fed and oil issues (don't bother bringing up the oil prices going up because of the weak dollar issue here though, everyone else thinks it's Chinese demand). But except for real estate (and its value increases have been due to speculation and low rates, not inflation), oil/fuel, and some agricultural products, the cost of most everything else has been stable to even down.

Originally posted by: brxndxn
I don't see what all the fuss is about... The US is currently experiencing a trade deficit that isn't good for our economy. When the dollar loses to other currencies, the trade deficit will decrease and start to strengthen the dollar again.

Also, with the price of the dollar going down, rich people will be forced to move their money around. When large amounts of money is moved around, it is usually good for the economy in the long-run.

The US doesn't have enough exports at this time to balance its trade deficit under any circumstances.

 

[Alistar7]

Really? How much is a gallon of milk where you live? How much was it last year?

 

[Spencer278]

Originally posted by: Alistar7
Really? How much is a gallon of milk where you live? How much was it last year?

1.69. I think this time last year it was 2 dollars but it is up from it low at 1.50 last spring.

 

[Vic]

Originally posted by: Alistar7
Really? How much is a gallon of milk where you live? How much was it last year?

I don't drink milk (bad for you) but I do see it in the store and I do buy half-and-half to use as coffee creamer. The price has been stable for quite some time at roughly $3/gal. (depending on store -- milk is a bad indicator of inflation because it has a very high retail mark-up, often 100% in some stores, so discount stores will sell it cheaper -- one major discount store chain near me sells it for $2/gal., but like I said I don't buy it). The price of a quart of half-and-half has been stable at roughly $1.80 for the past 2 years.
The price of eggs and beef have been going up considerably, but I attribute this to Atkins more than anything else.
The price of beer has been stable for several years 😛
Butter/cream products (like butter, cheese, and ice cream) are subject to large swings based on supply/demand, so they are never a good indicator of inflation (even though they have been up most of this year).

In the meantime, the average price of cars is down. Clothing cost is down. The cost of electronics (especially computer-related) has been down since late 2000. Over-production continues to rear its ugly head in our economy.

 

[dmcowen674]

Originally posted by: ariafrost
not a good thing if you are American...

Not according to the FLL's, they love a failing U.S.A.

 

[Alistar7]

We are going and will continue to undergo continued inflation, it is the only way to counter the continually running printing presses at the Fed. History has proven this time and time again, we will be no different.

 

[GrGr]

Originally posted by: Alistar7
Dollar has lost over 30% the last years, this is due to our Fed printing more and more money to cover our debt.

We are experiencing INFALTION, which will get much worse. The price of oil has not gone up, the value of the US dollar has gone down......

The price of oil has gone up for foreign nations that cannot print dollars on demand. But you are essentially correct. The Bush administration has unleashed a flood of cheap dollars into the world economy. Tomorrow, Wednesday, the fed is supposed to raise the interest rate to 2 percent.

Inflation worries

 

[ReiAyanami]

And yet inflation in the US has stayed low, when usually an economy with a sinking currency experiences high inflation. Odd don't you think?

can you say oil up 80% since the beginning of the year? i now pay $2.50 for gasoline. but the real reason why inflation is relatively low is 1 reason and 1 reason only: foreigners

$50+ billion outflow/month trade deficit, but what do they do? they lend it back to us.

we're facing $600 billion/year outflow via trade deficit combined with $400 billion govt debt, that's $1 trillion right there EVERY YEAR!

warren buffet has already bet $20 billion against the dollar and so far he's winning by far.

 

[glenn1]

The remember when all the American nationalists were laughing about the Euro? "It'll NEVER be as valuable as the dollar" they said...

I don't remember ANYONE ever saying that. IIRC the Euro lauched at an official exchange rate of 1.15/US$1 and promptly sunk to it's all-time low of about 0.83/US$1 and has since rebounded. That means it's up about 10% or so from its launch of about 4 years ago, hardly a huge move. You're looking at the 30% move off its all-time low and missing the rest of the Euro value history.

 

[sandorski]

A lower $US should spur Exports, but it may not. The biggest trade Deficit is with China and since China pegs it's currency to the $US, when the $US devalues so does China's currency. So basically Chinese Goods keep their Price advantage compared to US Goods. As of a few months ago(don't recall recent numbers) the Trade Deficit was still growing despite the already major decrease of the $US.

Saw some data regarding Food Trade on CNBC today. The Trade Balance in Food has always been a bright spot for the US economy, but like other sectors it has recently entered into a Deficit. That might parly be due to Mad Cow and other short term events(like failed crops in Florida), but it shows that simply devaluing the $ is not a cure-all.

 

[flexy]

Originally posted by: ntdz

Originally posted by: Infohawk
The remember when all the American nationalists were laughing about the Euro? "It'll NEVER be as valuable as the dollar" they said...

no.

soon, soon...you might not even be able to buy s**t with a dollar 🙂

 

[judasmachine]

My g/f and I buy the same groceries (give or take a few items) as we have for the last 4 years, and it's costing us about 10% more now. I know this isn't a HUGE increase or anything, but we're not making anymore money than when we started. Time to raise my rates, I guess, and pray the local market can withstand it.

 

[LordMagnusKain]

Originally posted by: judasmachine
My g/f and I buy the same groceries (give or take a few items) as we have for the last 4 years, and it's costing us about 10% more now. I know this isn't a HUGE increase or anything, but we're not making anymore money than when we started. Time to raise my rates, I guess, and pray the local market can withstand it.

if those are fair numbers then you are averaging a 2.5% annual increase in the cost of your good, that is a very reasonable inflation rate.

 

[XZeroII]

Originally posted by: LordMagnusKain
this came up recently:

Fact is that a falling dollar, just like a strengthening dollar, tends to balance itself out over time.

V$=> ^ exports => ^ employment => ^ domestic demand => ^ employment
until you run out of land, labor, or capital by which to increase production, then:
^ employment => ^ inflation => V domestic demand => V employment => V$

and such is a simplified market cycle.

Notice how everyone ignored true facts here (that you've shown). Most people don't understand this. However, not one single person here cared enough to ask you to explain it. Why? Because no one cares about the truth.