Obama Administration: "Kill U.S. Dollar"

The original OP shows blatant ignorance. There is a complete lack of understanding anything even closely resembling economics. I hate when ignorant followers see sensationalized "statistics" and ramble on about impending doom or the dollar collapse.

If you follow the dollar you know it is on a tear versus the euro. This might sound good (and it is for those who want to travel to Europe soon), but really it hurts U.S. exports to Europe because the dollar is more pricey compared to the Euro.

China is systematically accused by the west for purposefully devaluing their currency to raise exports (boosting their economy).

The whole idea of quantitative easing is to provide "easy money" for the system, thereby promoting banks to loan and speed up the velocity of money, in theory boosting the economy. When banks make more loans, the money supply will increase and inflation will occur. We have already seen the FED pull back on this method because the short term benefits are seeing marginal returns (artificially simulating a negative interest rate) while the long term negative effects continue to grow when interest rates rise and the economy climbs out of slow growth. The compounding of interest will slow moment.

Inflation is healthy to an economy. Right now the 3-4% annual inflation is right on par with a stable, healthy economy.

The problem is debt to GDP is high (about 102%) and it is essential to lower the deficit before it spirals out of control. Interest rates have been low for years now, but they are sure to rise, and when they do, the borrowing will become really expensive and the government will have to pay a huge percentage of their budget on interest payments (nothing). This will surely force the budget to cut all but the essential tasks of governance. Fiscal responsibility can and will avert a crisis.

reply to post by bgold1212


It is not about the Federal budget deficit. The problem is more the current account deficit and the source of that deficit.

The current account deficit is a sign of loss of competitiveness of American businesses vs the World.

The current account deficit can be bridged by capital account surpluses. Unfortunately it is not happening.

The US, UK both are facing net outflow of money which is putting pressure on the banking system.
Most countries of Europe are also facing the same problem.

reply to post by madmac5150


Keeping the value of the USD oppressed keeps America competitive internationally.

As well as giving us the opportunity to exploit and reign other currencies.

The USD is already an international currency there is no need for another.

I know most people on this board hate big banks.

I want to offer an argument that clarifies the role of the big banks in the system. The purpose of American and European big banks is to try and bring back the money lost through trade.

This is possible if American and European banks and large Companies have a tight grip on economically important assets overseas.

However as I said earlier, this theory did not translate into practice as East Asian economies have trumped the West.

East Asia has managed to create economies that are not dependent on the West for either capital or ideas.

The USSR failed not so much due to politics, but because the populace was lacking in value system and hard working attitude that East Asians have.

So Americans must understand that lenders do have rights. Dollar will not disappear anytime soon and hardships (coming) are real.

Hi everyone, every soul have equal chance to share idea. So in my opinion the value of Dollar decreased constantly not only due to administration of Obama'. It is also due to previously elected Governments of United states. So don't be blame on Obama's Government instead of previous Governments.

reply to post by madmac5150


No, no, no. The whole premise of the CFP article is simply rubbish. I urge people to read it before they reply to the OP. How you interpret the answer “We’re just going to kill the dollar” depends ENTIRELY on what the question was. Consider these two possibilities:

* What is the official government policy on how to deal with the current economic crisis?
* What is going to happen if countries around the world start using the Euro or other currency as a reserve currency? (or "What is going to happen if we simply print more dollars in the hope that it will get us out of the crisis?")

A "We're just going to kill the dollar" response to the first implies a deliberate strategy. The same answer to the second means an inevitable and slow decline over time. Very different. But since the CFP article deliberately doesn't tell us what the question was, we can only speculate. It says "I believe this report will provide the context and clarity we are all seeking". No it doesn't: it gives one phrase, deliberately devoid of any sort of context, which is an answer to a question the CFP won't give us! I was tempted to say that this is just very, very poor journalism. It isn't - it is just baseless scaremongering, using highly selective quotes to mislead unquestioning readers.

Originally posted by Knives4eyes
I may have been misinformed but didn't Ron Paul say that if he was elected he would remove the U.S. dollar?

Interesting point, but Ron Paul wants to get rid of fiat money, not US currency. The dollar can still be tied to gold or silver, and it was in 1973 that the US took the dollar off the gold standard. Gold is valuable everywhere which is why it was adopted as a standard, but it is the unit amount tied to it which is the individual currency. Dollars, rubles, rupees, pound, yen, dinar etc.

The Nixon Shock of 1971 ended the direct convertibility of the United States dollar to gold. Since then all reserve currencies have been fiat currencies, including the U.S. dollar and the Euro.[

While gold- or silver-backed representative money entails the legal requirement that the bank of issue redeem it in fixed weights of gold or silver, fiat money's value is unrelated to the value of any physical quantity. Even a coin containing valuable metal may be considered fiat currency if its face value is higher than its market value as metal.

en.wikipedia.org...

When people in the Obama admin say they want to "kill the dollar), they likely mean they want to eliminate American currency as a viable trade currency on the market, and replace it with the so called "basket of currencies" being pushed by Globalists. Likely you have heard that term? The American dollar has been so strong in past decades that the Globalists, probably especially the Rothschilds, feel a need to take it down a notch so that their euro and other currencies can flourish more. Also the dollar as a strong currency is too much of a competition with other currencies, and the Socialists want equality of everybody in their happy Utopian society, so the US dollar has to be ruined for that to take place(in their eyes, you just have to think like a Socialist to understand this, and you have to understand what Barack has been doing since he got in office, with taking the US down a notch to make everyone else better). Think of it as the old cliché that people with low self esteem often feel they have to cut other people down to bring themselves up. This is kind of what socialism attempts to achieve. That is how they achieve equity, not by raising themselves up with personal work and entrepreneurship, but by taking from others and pulling them down lower. Or they seek to raise themselves up by taking from others what they lawfully gained through work.

The Obama admin is full of jealous socialists and people who feel they have a right to someone else's rewards.

Globalists just do this on a global scale. Obama apparently grew up believing the US was a horrible colonialist and seeks to destroy it from within. This is what Kruschev said the Soviet Communists would accomplish in the States.

What Ron Paul wants to do is take out the platform for this kind of fiat currency which the Fed props up through printing worthless paper which brings the value of the dollar down. This we call inflation, which is a hidden tax.

Globalist basket of currencies
www.zerohedge.com...

reply to post by bgold1212


The banks aren't making loans, they are keeping that cash for their own needs and benefits, not for the people. Doesn't that kind of blow your whole theory that they are doing this to keep the economy flowing Keynesian style? They are not curtailing inflation either, because they just keep printing money. Inflation is a hidden tax. In this manner they can fool the people into thinking that with a bit of raising taxes we can get things balanced but they can also use this function to fool the people into thinking they are not raising taxes and therefore things are doing ok.

Raising taxes and printing money is a huge disaster and they know it but are not letting the people in on their little dirty secret.

Not raising taxes but printing more money is also a disaster but the people just don't know it yet. The problem we are having is government spending out of control. It is time to rein in all this reckless spending, whether it is for entitlements or pork barrel. Nanny Statism has been on the rise big time and especially since Barack got elected.

People have been predicting the dollar collapse for decades now. It is somewhat of a miracle it has not happened yet.

reply to post by IndianaJoe

Before this becomes political and deviates from objective analysis it should be known that killing the dollar and CUTTING spending

They just need to cut the freakin spending. They don't have to kill the dollar. Only globalists want to kill the dollar and they want to crash the economy. They are doing a grand job of it, don't you think? Politicians don't want to stop spending because that is how they get elected, by promising stuff to people who just don't know any better and want easy money. We can't stop spending till we "kill" some entitlements, and Barack and friends have just added more entitlements. It's called Obamacare and the cost is going to be insane. No one who cares about this country would have done that. Thanks a bunch Progressives for the darn Socialist Utopia nonsense.

reply to post by dogstar23

I sometimes wonder if it isn't foreign forces at play trying to hurt our economy because we (the US) are absolutely trouncing the EU,

It's globalists. Does it ultimately matter which country they are from? The Internationalists have no loyalty to any country and will not protect the sovereignty of any nation.

Originally posted by ThirdEyeofHorus
reply to post by IndianaJoe

 

Before this becomes political and deviates from objective analysis it should be known that killing the dollar and CUTTING spending

They just need to cut the freakin spending. They don't have to kill the dollar. Only globalists want to kill the dollar and they want to crash the economy. They are doing a grand job of it, don't you think? Politicians don't want to stop spending because that is how they get elected, by promising stuff to people who just don't know any better and want easy money. We can't stop spending till we "kill" some entitlements, and Barack and friends have just added more entitlements. It's called Obamacare and the cost is going to be insane. No one who cares about this country would have done that. Thanks a bunch Progressives for the darn Socialist Utopia nonsense.

The Obama Administration has reluctantly given Moody and the S & P everything they

needed in order for the USA to retain its AAA rating.

The Sequester has successfully reigned in spending.

When the Bush Tax Cuts disappeared then In Come increased to about $2.7 Trillion.

Result: The U.S. Federal Budget Deficit number is .........steadily decreasing.

Go look for yourself at usdebtclock.org.