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Since you are part of North America I am assuming you are speaking of yourself as well.
O'Neill Says U.S. `Strong Dollar' Policy Is `Vacuous Notion'
April 16 (Bloomberg) -- Former Treasury Secretary Paul O'Neill said the "strong dollar'' policy that he and every other Treasury chief since 1995 endorsed is ``a vacuous notion.''
"When I was Secretary of the Treasury I was not supposed to say anything but `strong dollar, strong dollar,''' O'Neill said today. "I argued then and would argue now that the idea of a strong dollar policy is a vacuous notion.''....
O'Neill, President George W. Bush's first Treasury secretary, said during his tenure he repeated the mantra originated by Clinton Treasury chief Robert Rubin that a "strong'' dollar is in the best interests of the U.S.
Originally posted by citizen truth
America can't have their cake and it eat too.
Everyone has the Wal Mart mentality,or so it seems.
The super consumerists want to buy things but they don't want to pay a good dollar for a good product.
Companies respond to this by out sourcing.Americans lose jobs BUT they get products for a reduced cost.
Why buy a toaster for $40 that will last ten years when you can buy one EVERY year for $6.00? Yep, do the math on just this one item.
As much as I dislike China for their human rights issues, I can't dislike them for playing in the capitalist world.
China has silently crept in and fed the masses with their junk.......and continue to do well.
IF China drops the dollar,then it's because it makes sense from a "cutting your losses" perspective.
I see war as the only alternative, and if the situation in America is bad enough, all it takes is a charismatic leader to consolidate anger and bitterness toward China to launch an aggressive war against them.
Why on God's green Earth does this seem to be the answer to every problem the U.S. runs in to?What the hell did China do to provoke a war?Oh,they sold you cheap crap and people line up to buy it.
America's penchant for keeping up with the Jones' will be it's downfall.........and it's apparent thirst to be number one.
I had a longer reply to this thread but the portion I quoted has me seeing red.
Edited for a typo
[edit on 15-4-2008 by citizen truth]
Originally posted by enigma77
reply to post by citizen truth
I envy you. It must be nice to be able to afford to be choosy. I would be, if I could be. Unfortunately, those of us who despise the WalMart and such sometimes are "forced" to go there anyway because of the low costs. I hate it.
I think it is time that we should take a serious look at the possibility that the US is going to take us down towards a worldwide recession in one or two year's time.
It is well known that the US is the world's biggest economy, taking up about 30 per cent of global GDP, but it is now also the world's biggest debtor country. According to the most authoritative person on this subject, the US Comptroller General David Walker, who audits the federal government's books, the tab for the long-term promises the US Government has made to creditors, retirees, veterans and the poor amounts to US$43,000 billion, US$145,000 per US citizen, or US$350,000 for every full-time worker.
And this figure does not even take into account all the personal debts such as credit card bills and mortgages. With a low interest rate of 1 per cent running for the past three years in a row, savings plummeted to just 1.8 per cent last year, below 1 per cent since January and at zero in the latest estimate from the Bureau of Economic Analysis. In 2000, household debt broke 18 per cent of disposable income for the first time in 20 years. Credit card debt alone averages US$7,200 per household.
The US Government indebtedness is financed this way: The US now runs a trade deficit roughly 6.5 per cent of its GDP and the gap is widened every day. Its citizens are spending ever more on foreign goods, and with the US dollar as the international currency, the US Government just prints money to finance the deficit. And with this money, central banks in the surplus countries purchase most of the US Treasury bonds as currency reserve.
By now, Japan is the largest creditor of the US Government, and the Chinese mainland has been a fervent buyer for the last few years. As for Hong Kong, most if not all of our reserves are in US dollar denominated assets. The US Government in turn uses this foreign borrowed money to finance as much as 90 per cent of the federal deficit which stood at US$412 billion last year. The federal deficit is expected to be running at about US$2 billion a day at the moment.
Put it simply, the Americans have been living way beyond their means for much too long. On top of this, the Bush Administration is cutting tax at least three times while fighting an expensive war in Iraq, which has already cost the country US$700 billion, and currently progressing at US$5.6 billion per month. Now the US economy is dependent on the central banks of Japan, China and other nations to invest in US Treasuries and keep American interest rates down. The low rates keep American consumers snapping up imported goods.
Any economist worth his salt knows that this situation is unsustainable. This includes the country's economic guru driver Alan Greenspan, who recently warned his countrymen that the federal budget deficit would hamper the nation's ability to absorb possible shocks from the soaring trade deficit and the housing boom. Now he may have to add two more worries: soaring oil prices and cyclones.
The US is now clearly in huge trouble, economically, socially, politically, and internationally. The Bush Administration bungled big in cyclone Katrina's aftermath in New Orleans, and then a minor rerun from Rita in Houston, and this will trigger the general outburst of people's dissatisfaction with the government, leading to great internal turmoil lasting for many years. In all likelihood, long-term interest rates are going to rise, and the greatest property bubble the world has witnessed is going to burst in the next one to two years.
The countdown is in progress, and there is no way that anybody can do anything to reverse it either by short-term measures such as fiscal and monetary policy, or through long-term reform of tax policy, entitlement programmes and even the entire federal budget.
Originally posted by Karlhungis
More cheery news about the economy. If the rest of the year goes as well as the first 4.5 months, it looks like Bush is going to go out with a bang.
The final quote from Sarkozy is interesting.
"The dollar cannot remain 'someone else's problem,' " Sarkozy said. "If we are not careful, monetary disarray could morph into economic war. We would all be its victims."
(visit the link for the full news article)
[edit on 15-4-2008 by Karlhungis]
Originally posted by alaron
reply to post by Karlhungis
Yet Bush continues to think we can pull outta this,and continues to push to keep troops in Iraq.
This will end like vietnam,and cause more hatred for America.We freed them now let them decide what happens,that is what fredom is all about.
We need to stop spending trillions on a never ending war which can't be won,only winners are defence contractors.