didn't exactly know which thread this one went with...
but it just came to my attention that the value of the American dollar has plummeted...
Canadian money is worth more than American money since EVER!
this doesn't happen?
anyone mind giving an explanation since I don't know anything about economics?
doesn't war usually boost the economy?
spending will boost the economy...spending on infrastructure or material for war or for colonial expansion for trade...the american dollar is weak because we are in debt and the dollar is not backed by elements from the periodic table but is rather based on the expectation that the future will be well...hence we have "notes" which are a promise to pay....the balance of trade with china is out of whack and their is uncertainty in the world oil markets so the price of fuel is not dependable...also we have too much credit and the mortgage market extended itself by allowing home loans that were based on salaries that were not dependable or the mortgage payment was a variable and with the change in the interest rate the dollar amount to pay the mortgage has exceeded some homeowners ability to meet the payment....thus the dollar is weaker..but this will boost exports and create more tourism and allow us to pay back debt with cheaper dollars...it is a cycle..not a nightmare...
..the nightmare is when the government prints money just to push paper into circulation...this leads to hyperinflation ( argentina, the weimer republic, etc,.)...this is why we have an independent non-governmental agency called the federal reserve...to keep the expansion and contraction of the money supply out of the control of political parties...the fed reserve controls the price of money sold to the banks who in turn use this purchased money to finance the ecomomy and set their own loan profit expectations....
http://news.bbc.co.uk/2/hi/business/7006060.stm
"Jobs fears as euro gets stronger
The dollar has been weakening against the euro in recent weeks
More cuts may have to be made at Airbus if the euro continues to remain strong against the dollar, an executive at the European planemaker has warned.
"
Originally posted by zeeblebotFeeling threatened zeeblebot? Why bring up the Euro when we're talking about the US and Canadian dollars?
http://news.bbc.co.uk/2/hi/business/7006060.stm
"Jobs fears as euro gets stronger
The dollar has been weakening against the euro in recent weeks
More cuts may have to be made at Airbus if the euro continues to remain strong against the dollar, an executive at the European planemaker has warned.
"
Originally posted by shortcircuityes, the euro also needs to be in this discussion as well, since it has also been experiencing recent change...
Truth be known, China is rapidly gobbling up US debt and Euro debt. The Chinese could break both US and European economies by dumping both currencies, and still survive.
and the scary thing about the chinese is that they know very well the power they hold in their hands...
and their just crazy enough to use it for the worsening of the world...
I agree with many talk show hosts on several radio stations...
this look like a new cold war to anyone?
..the entire history of china is one of temporary consolidation of power and then disintregration into regional warlordism...it will again crack..the new warlords will be banking - narcotic units but their will still be one national armed forces...it has always been...it will always be...china is a "burp" that
splats out into drops and then reforms into a burp and back into drops...
Originally posted by reinfeldbut how can you be so sure that history will continue to repeat itself?
..the entire history of china is one of temporary consolidation of power and then disintregration into regional warlordism...it will again crack..the new warlords will be banking - narcotic units but their will still be one national armed forces...it has always been...it will always be...china is a "burp" that
splats out into drops and then reforms into a burp and back into drops...
again and again?
is it something about Chinese culture that calls for this cycle?
Originally posted by rubberjaw30They don't have anywhere near enough reserves in EUR denomination to dump the Euro. The US, however, is a different matter. Not only their reserves in USD are much higher, a high increase in USD volatility may eventually trigger the change towards the EUR as the main international currency. This means that the potential for the USD to fall is much higher than the EUR (which is NOT the main international currency, even if it has been building itself as a credible alternative).
yes, the euro also needs to be in this discussion as well, since it has also been experiencing recent change...
and the scary thing about the chinese is that they know very well the power they hold in their hands...
and their just crazy enough to use it for the worsening of the world...
I agree with many talk show hosts on several radio stations...
this look like a new cold war to anyone?
The US has a lot to worry and there are many discussions whether the USD fall will be smooth (as up until now) or will eventually crash. One thing is for sure, it must eventually go down as long as the current account and the fiscal budget are showing such large deficits. Higher financial asset returns can delay the adjustment, but returns seem to be converging.
Originally posted by PalynkaBy the way, this is a mistake. Should have read:
Current account deficit + Trade deficit + decrease in the difference between financial assets = depreciation.
Current account deficit + Budget deficit + decrease in the difference between financial assets = depreciation.
Originally posted by rubberjaw30..chinese culture is materialistic to the core ( in spite of the burp of confucius and communism )...self-interest is the one thing you can always depend on with the chinese ( i know them well )...this is not to say something offensive..it is just a clear observation...they have no ability to
but how can you be so sure that history will continue to repeat itself?
again and again?
is it something about Chinese culture that calls for this cycle?
give allegiance to something outside their household or clan for a long time..and when they do give it up it is usually at the point of a gun...no..the
chinese look to their dinner table and to their ancestors and children and don't give a hoot about much of anything else...( there are of course exceptions as will all people and i am speaking to the historical generality )...so if you want to appeal to the chinese you start with rice and then put
bullets on the table if necessary.."rice" is generally enough to settle most things...historically the chinese have not been an expansive imperial power but rather a defensive power or a fragmented state of conflict within a common border which the world has called "china"...