why is the dollar dropping?

[IceBergSLiM]

Originally posted by: lozina
oh... it's too bad America doesn't actually produce anything to export anymore- doh!

this website says otherwise......wierd.

http://www.thomasnet.com/

 

[imported_elwood]

I thought this was going to be a video of some kinda magic trick. I was fooled.

 

[SoundTheSurrender]

Because we are in so much debt and the dollar has been printed too much that it's saturated.

 

[Metron]

An analyst at Goldman Sachs today said that a Recession is coming, so expect unemployment to rise by at least 2% and Fed to drop the Prime Lending rate by almost the same amount within the next year.

China holds a large portion of our national debt, and it is in their interest to devalue the dollar (China can then buy more of our debt at a lower relative cost, since dollars are cheaper).

Rest assured that the lobbyists and corporations running our country will be working diligently to resolve this situation. *smirk*

 

[polarmystery]

I think I know why!



dubbya!

 

[JS80]

Originally posted by: Metron
An analyst at Goldman Sachs today said that a Recession is coming, so expect unemployment to rise by at least 2% and Fed to drop the Prime Lending rate by almost the same amount within the next year.

China holds a large portion of our national debt, and it is in their interest to devalue the dollar (China can then buy more of our debt at a lower relative cost, since dollars are cheaper).

Rest assured that the lobbyists and corporations running our country will be working diligently to resolve this situation. *smirk*

It's in China's interest to devalue their US treasury and currency holdings? Laugh.

 

[Metron]

Originally posted by: JS80

Originally posted by: Metron
An analyst at Goldman Sachs today said that a Recession is coming, so expect unemployment to rise by at least 2% and Fed to drop the Prime Lending rate by almost the same amount within the next year.

China holds a large portion of our national debt, and it is in their interest to devalue the dollar (China can then buy more of our debt at a lower relative cost, since dollars are cheaper).

Rest assured that the lobbyists and corporations running our country will be working diligently to resolve this situation. *smirk*

It's in China's interest to devalue their US treasury and currency holdings? Laugh.

Buy low, sell high.... or in this case:

1) Acquire dollars cheaply
2) Lend dollars to US
3) Allow relative dollar value to rise
4) Obtain repayment at higher values
5) Profit!

 

[PingSpike]

Originally posted by: JS80

Originally posted by: Metron
An analyst at Goldman Sachs today said that a Recession is coming, so expect unemployment to rise by at least 2% and Fed to drop the Prime Lending rate by almost the same amount within the next year.

China holds a large portion of our national debt, and it is in their interest to devalue the dollar (China can then buy more of our debt at a lower relative cost, since dollars are cheaper).

Rest assured that the lobbyists and corporations running our country will be working diligently to resolve this situation. *smirk*

It's in China's interest to devalue their US treasury and currency holdings? Laugh.

Yeah, China already bought all of the USAs debt didn't they? And when the dollar goes in the toilet, the actual value of that debt is going to go down. That should screw China, not us.

Anyway, the problem with the export thing is the US doesn't make most of its stuff anymore. Even if the dollar stays low, it'd take awhile for factories and stuff to start opening up here.

 

[Metron]

China doesn't hold all of our debt. The US has been pressuring China to stop selling dollars in the currency markets to maintain a low relative value of the dollar.

The dollar is already in the toilet, so it's in China's interest to acquire even more debt.

Eventually the dollar value will rise relative to the yen, and the repayments on that debt will be worth even more... an easy bet for the lenders in China.

Is this really so hard to understand?

 

[PricklyPete]

Originally posted by: JulesMaximus
Because George Bush hates black people.

I thought it was something like that!