The US dollar is DONE!

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posted on Mar, 18 2008 @ 07:56 AM
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reply to post by Freeborn
 


That used to be the case, when America produced products we bought and they bought what we made.

Nowadays, we generally do all the selling in the relationship and America just buys. We buy very little in terms of actual Goods from the USA, just "services".

However, our primary trading partner, in both import and export terms, is the PRC. The PRC's primary trading partner was the USA, but has now changed recently to be the EU. The USA has steadily, over the past few years, slipped down the "importance" scale.

Whilst a crashing US economy would hurt the rest of the world, it won't necessarily do the damage it might have done in the past. In all likelihood, we would bounce back fairly quickly, whereas the states has sold itself short to the highest bidder and left theme selves wide open.

While American consumers used to fuel the expansion in India and the PRC, nowadays, alongside the EU, they have a growing middle class of hundreds of millions of people, ready to go and take up the slack that the American consumer used to hold.

All we're seeing here is a re-balancing of the world economy. The trouble is, for everyone, to try and stay upright while the floor shifts. For some, the floor will be far less stable than others.




posted on Mar, 18 2008 @ 08:22 AM
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reply to post by stumason
 


I appreciate your reply and explanation, I assure you, economics is not my strong point.

I understand from your post, which summarises a lot of what I have heard before just had not assimilated, that EU and UK are now better positioned to withstand any fall out from a decline in the US economy etc, but surely the subsequent domino effect will still affect us quite severely.

Up unitl recently I had quite a bit of faith in the strength of our economy, (for all Brown's faults as a leader he was an excellent Chancellor), now I am just not so sure.

Britain now has relatively little manufacturing and relies heavily on administration, banking, marketing, advertising etc industries.
Would they not be more susceptible to the effects of any decline in the US dollar and economy than traditional manufacturing industries?



posted on Mar, 18 2008 @ 08:33 AM
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Originally posted by flice
yep... I can see the dollar dropped another 0.08 pr 100 from yesterday.

I'm not surprised that those exchange shops are turning away dollars. I wouldn't wan't to get caught with dollars right now unless I was going to buy heaps of electronics in the States and bring em back to Europe.

I'll be keeping an eye on the dollar value through out the day.
At the moment it's 2 dollars pr. pound or 0.63 euro for 1 dollar.


Lol.. sorry for laughing, but as I'm sitting here watching the live feed from the dollar value vs. the Danish one, it's just going down down slowly... dropped 0.0050 the last 10 min.


[edit on 18/3/08 by flice]



What is the link to the live feed you are speaking of? I'd like to check it out and I'm sure others would too, thankx!



posted on Mar, 18 2008 @ 08:35 AM
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Originally posted by Attari
The final collapse of the Empire then!


This collapse is manufactured. The 'American Empire' will only fall and be absorbed in to a bigger and more powerful empire.

The North American Union will come out of this. Before long, I wouldn't be surprised if the Organization of American States lead to the absorption of South America and Central America, and probably even before that, I wouldn't be surprised if the EU and NAU merged.

This is completely manufactured. They went to war, controlled the oil output, raised gas prices, drove local economies in to the ground, people began losing money on hand, foreclosures and the housing crisis began from that, food prices rose because of gas prices, which just left people with even less money on hand, and so it continues.

Local economies collapsing leads to a devalued dollar that was worthless to begin with. That means banks will be dumping their assets to survive, which means the rich can come in and buy up assets and stock and essentially own the banking industry in the United States.

Trust me, this collapse won't affect everyone. The powerful ones behind the scenes won't be touched by this. They'll be just fine. They wouldn't pull the strings in a manner that would hurt them, so they're just fine. It's us little people that will be crippled in time because of this.



posted on Mar, 18 2008 @ 08:36 AM
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reply to post by jedimiller
 
Basically the US dollar is becoming like company store money. Soon you'll only be able to spend it here..



posted on Mar, 18 2008 @ 08:37 AM
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My 2 cents on this is that it won't matter if the dollar falls because we will move into the Amero soon enough and begin using the Euro currency... Maybe this is being done on purpose to rape the american public even more... Forcing us to turn in our US dollar for an Amero and we would lose money... Just a thought and by no means am I stating this at the truth... I think of these things and for some reason conspiracy pops into my head...



posted on Mar, 18 2008 @ 08:38 AM
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Of course, we're not immune by any stretch of the imagination, but we're not going to die a death just because the Yanks do (no offence).

I think you'd be surprised by just how much manufacturing is still in the UK. Alot of it is High-tech, or Aerospace, rather than Steel mills and coal mines, but that is still here too. We offloaded the low-tech manufacturing base to India and China, but plenty is still done here, mainly the high end stuff.

If needs be, the UK still has hundreds of years worth of deposits in iron and coal, but it's cheaper to get it abroad. Once THEY run out, or if the prices climb higher, who do you think will be nicely positioned to supply the world with base materials then? I know the US could say the same, but compared to the EU as a whole, they have very little manufacturing capability at all. Anything they do make, such as cars, are almost exclusively sold in the US, so if their consumers fail, so does their industry by default, as no one will buy Chevy cars.

Despite what you might be told by Americans, "Made in USA" is not something that inspires confidence in a product. They are, quite often, inferior (this isn't opinion, but rather a long running situation with American products)

Bottom line, we'll probably see slower economic growth, but all our eggs aren't in the US basket anymore and I think the world economy is resilient enough to not suffer from a US collapse to much, despite what some Americans would say.



posted on Mar, 18 2008 @ 08:47 AM
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reply to post by stumason
 

I wouldn't count on being much better off if I were you. The UK has been in bed with the US for so long if we go down the toilet so will you. It bites, but such is life.



posted on Mar, 18 2008 @ 08:55 AM
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reply to post by LLoyd45
 


The pound is losing ground now as well. Euro is up against both to record or near record highs.

The Fed cut rates again this morning which is always inflationary. Our dollar will be worthless if this keeps up, at least the bankers will still be rich! I wish the Fed would bail me out when I made intentionally poor financial decisions.

To the poster that says this will not effect us in the US?


Wait till bread is $6.00 a loaf and buying anything that's imported requires a loan that th ebanks won't give you because there is no more credit avilable!



posted on Mar, 18 2008 @ 08:57 AM
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Its all planned, what can anyone do? Nothing.



posted on Mar, 18 2008 @ 09:03 AM
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reply to post by LLoyd45
 


Politically, over maybe the past 5 years, we have been in bed with you a bit too much, but economically, we are actually very diverse and have been schmoozing the Chinese, Indians and our Euro friends for some time also. Gordon Brown just got back from a trip to China, where he took an entourage of several dozen mega-rich types (like Branson) to do big deals, bringing big business to the UK.

we do have some major international companies in the UK, we're not reliant on the US at all for our economy. It plays a big part, but I wouldn't buy into the whole "US is King" when it comes to UK/EU trade.



posted on Mar, 18 2008 @ 09:08 AM
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What happens to China when America stops buying Chinese goods? Admittedly, it might be hard, because we, as a nation, have become so addicted to cheap, easily acquired crap that comes out of WalMart. Some of us have stopped the madness, but a serious recession would curtail it even more. Maybe people would wake up and realize they are supporting other economies at the peril of their own. Will the rest of the world take up the 'slack' in Chinese exports? Can they?

What happens to India if all those American companies that have outsourced manufacturing (not to mention service) jobs there, fold up and go home? Who will employ them, then? Will China? Britain?

I'm not personally worried...above the fact that I might have to defend my own farm if people get freaky, but I'm prepared for that. I don't buy frivolous stuff, so I won't miss the frivolous stuff. But, I will miss ATS if we suddenly no longer have electricity...or a server.

Edit to add: I obviously know diddly about economics, but it seems that if millions of Americans stop buying stupid stuff...it's got to affect other economies as wel.l

[edit on 3/18/08 by themillersdaughter]



posted on Mar, 18 2008 @ 09:11 AM
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reply to post by stumason
 
Britain has been an industrial nation in decline for a long time now. Do you really believe you have anymore of a manufacturing base than the US does? We're like siamese twin joined at the hip. If one of us dies, the other is soon to follow.



posted on Mar, 18 2008 @ 09:21 AM
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reply to post by themillersdaughter
 
China, India, the UK, and a whole slough of other welfare nations that depend on foreign aid from us will feel the burn just as we do.

If things actually go south, I wish you luck. It will be the Great Depression all over again with millions of people aimlessly wandering about the country in search of work, food, housing, etc.

The big difference though will be the people themselves. People were more self-sufficient back in the 30's. Nowadays, people will simply try to take what they want by force because they have no other way of producing or acquiring it.



posted on Mar, 18 2008 @ 09:24 AM
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reply to post by themillersdaughter
 


The EU is now China's main trading partner and they have a rapidly growing middle class of their own. It is quite realistic that, in the medium term, China itself could easily take up the slack that America leaves behind. Then factor in India and other emerging economies, and the 300 million people in the US doesn't look like it is so important.

I'm not saying there won't be pain, however, but I do not think that the collapse of the US economy would instantly and without question spell doom for the rest of the world.

reply to post by LLoyd45
 


I'm not saying the UK has a Manf. base to compete with the US directly, but the EU as a whole certainly does. Shipbuilding, steel, cars, aircraft, microchips and other electronics. It's all here and in large abundance.

We also have a much larger, healthier, wealthier, happier population, which helps.

When looking at the declining middle class in the US and weigh it up against the rising middle classes elsewhere (EU, Russia, China and India), I do not think that the US is the "be all and end all" of the world economy.

We'd go through a short term blip and probably come out the other side with a much more widely dispersed global economy, less reliant on any one nation, as has been the norm for far too long now.

The downside is that America seems to be the one designated to take the brunt.....

[edit on 18/3/08 by stumason]



posted on Mar, 18 2008 @ 09:25 AM
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reply to post by LLoyd45
 


The UK, China and India dependent on foreign aid? WTF?


[edit on 18/3/08 by stumason]



posted on Mar, 18 2008 @ 09:30 AM
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Originally posted by themillersdaughter
What happens to China when America stops buying Chinese goods?


We'll never stop. What has always allowed China to produce those cheap goods is the fact that our politicians tend to tax the companies to death if they do not leave for other countries. So they do, or they go out of business here. Either way, we tend to become dependent on the goods coming from those other countries (such as China) because we do not want to subsidize the higher taxes and regulation costs paid by domestic companies through higher prices.

Should we slip (power-dive) into another depression (economic oblivion), we will also fail to support those higher prices, but not through frugality as much as necessity. When you have 5 dollars and the bread made in America is 10 dollars a loaf, you have little choice but to buy the bread made in China for $4 a loaf.


I'm not personally worried...above the fact that I might have to defend my own farm if people get freaky, but I'm prepared for that. I don't buy frivolous stuff, so I won't miss the frivolous stuff. But, I will miss ATS if we suddenly no longer have electricity...or a server.


Be prepared to do so, as I am prepared to defend my country home. I would not be surprised to see areas of this great land transformed into some twisted perversion of a Mad Max flick. And I will join you in missing ATS, although I do hope enough of our civilization persists to make sure that doesn't happen. Wow, I guess I am an optimist after all...


TheRedneck



posted on Mar, 18 2008 @ 09:31 AM
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reply to post by stumason
 
Maybe you're right, but human nature tends to dictate otherwise. If all the nations in Europe worked together maybe, but now would be the time for those with the most marbles to try and seize control.



posted on Mar, 18 2008 @ 09:34 AM
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Originally posted by jedimiller
You know what I really think? you guys wish the dollar was worth nothing! is that a way to get back at the united states? to throw it on our face?

This isn't just a dollar and United States thing. I want the global economy to crash in order to stop this rampant rape and trashing of the planet and the use/abuse of other species living here on Earth too before they all become extinct. This planet will not survive unless the HUMANS are STOPPED, and soon!

Taking down the dollar will cause the infrastructure that supports and feeds so many to crumble. The repercussions of that will set the stage for everything else to come crashing down. When that happens, the infestation called humanity will fall! the end results will be a better world, and not that dead world that the infestation is pursuing.



posted on Mar, 18 2008 @ 09:35 AM
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The markets have recovered massively today so far, especially the likes of goldmans and lehman brothers. The dollar has recovered a bit as well, especially against the pound. Maybe its not going to be all doom and gloom after all. I guess as usual, only time will tell. The announcement on interest rates is due in a bit, the amount of cut and reaction to it, may well be the key in the short term.





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