The US dollar is DONE!

What happens to places such as Canada, like our dollar is so close that its at par back in November it was 1 USD = $1.10 CAD, but not too many places are too keen on accepting the CAD, I am going to Ohio in May for a convention.

Then to England in July (I don't drive or have to pay insurance as I don't have a vehicle. I just save money like crazy)

reply to post by stumason

I'll take up for Lloyd on this one. I thought they were getting a ton of foreign aid as well. But I decided to check before posting to this, and I found out here that the UK in 2006 received $0 in foreign aid from the US and China got a whopping $47.1 million (including Taiwan). Zip compared to the size of our budget.

Looks like you've got truth on your side.

TheRedneck

Originally posted by mrmanuva
Maybe its not going to be all doom and gloom after all.

A conclusion like this really cannot be drawn on a basis of one single day. There is a distinct possibility that Lehman Brothers will go down as well as they don't have a diversified business which is quite similar to that of Bear Stearns.

If bank decide not to borrow money to them anymore, they will be running out of liquidity and that is the scenario that will come to light soon, in my opinion.

reply to post by stumason



But aren't the 'emerging economies' dependent (somewhat) on American companies? If American manufacturing (or service) companies close down operations in India, where will those people work? How will they buy Chinese goods if they have no salary? I say this in complete ignorance of how many people in India actually depend on US employment. But SOMEONE is doing all that manufacturing we aren't doing anymore.

I've been saying American teens need to get up off their lazy butts and work...maybe they will if it means they wouldn't eat, otherwise. If we had our priorities straight...well..I wont even go there. But I've driven all over this country and I know we have enough empty land to actually produce the food we need to survive while our priorities are straightened out for us.

Edit to add:
I don't understand how China is going to take up the slack...will its citizens take the place of American citizens buying the goods they produce? If they could do that, wouldn't they be doing it already? Will they employ all the people American companies are employing? Why would they do that when they have their own people willing to work for a dollar a day? Or, hm...a yuen. And seeing as how they are basically willing to poison people for the bottom line, how long before people in the UK are using toxic toothpaste, killing their pets with toxic pet food and giving their children lead-painted Thomas the train toys to play with? I wouldn't feel so secure that China is going to keep everything rolling.

I go out of my way to avoid anything made in China. Aside from my computer's components (Gateway), I don't think I have contributed to China's economy in at least 5 years. I could be wrong.

[edit on 3/18/08 by themillersdaughter]

reply to post by stumason
I didn't say China and The Uk were welfare nations. I said: ", and a whole slough of other welfare nations". That's what the puctuations were for. Maybe I didn't state my meaning clearly enough. Sorry. My point being, anyone who's joined at the hip economically to us will also suffer the backlash.



[edit on 3/18/08 by LLoyd45]

As an American, I find this thread disturbing. I am a peaceful person. I do not support what my government is trying to do elsewhere. It's doing it without my consent, but I cannot stop it by myself.

I wish no ill will towards the people of other countries, but they are dancing on my grave over the devaluation of the currency that sustains me. I work hard and I live honestly and I try to be a decent human being.

Why, Planet Earth, are you so gleeful about my imminent demise? Can you not distinguish between those who steal my money and "act" in my name and me?

I realize the irony here. It's a little heartbreaking. That's why I've always tried to be a good human being instead of just a good American.

Dollar losing clout around the world

In Manhattan's Bowery district, Billy LeRoy, the owner of Billy's Antiques & Props, prefers payment in euros so he can stockpile the currency for his annual antique buying trip to Paris.

"Whip out dollars at the French flea market now, and they'll shoo you away," he said at his store near apartment buildings where Europeans are snapping up units because they've become dirt cheap. "Before it was like the second coming of Christ, but now they don't want it or if they do take dollars, they're going to take their pound of flesh." Full Text

When non-US entities began shedding Dollars in revolt against Carter's foreign policy, Volker solved the crisis with severe tightening, igniting global interest rates and recession. Not an option.

With the West already in the gripe of recession, rate increases of sufficent measure could = global "D". The only alternative is the one we've witnessed since August...a concerted, unified liquification by world central banks, and the defacto nationalization of major financial institutions.

High PPI More Honest Than CPI, FOMC Has To Look Past It

*Volker on the 1998 Long Term Capitol Management crisis: "Why should the weight of the federal government be brought to bear to help out a private investor?"

reply to post by ElectricUncleSam

EUS, here's a live-link to currency pairs. Includes Gold, oil, bonds etc.

EDIT: Lot of banter about a 50 - 75bip cut. Anyone shorting into this rally?



[edit on 18-3-2008 by OBE1]

reply to post by hypr2008

Source

Canada-U.S. Trade Relationship

The Canada-U.S. trade relationship is the largest ever to exist between two nations. Two-way trade in goods and services between Canada and the United States during 2000 was estimated at approximately C$700 billion, or almost C$2.0 billion per day. Of Canada's 2000 imports, 74 percent came from the U.S., while 86 percent of Canada's total exports were shipped to the United States. The volume of Canada-U.S. trade last year was far greater than the total amount of Canada's trade with all of its other trading partners combined.

Since America has lost so much of its manufacturing base, and now relies on consumer spending (from other countries no less) for 70% of its economy, its shouldn't be a wonder to anyone where this is going. What's the use of holding dollars? If you can't buy things with them (or buy as many things as they take from you) the currency devalues.

Americans have become fat off of the cheap products from other countries, and all the hard work by American that lead to America becoming a superpower economically is bleeding away. We're in poverty, with a average personal savings rate of -1% and a national debt at 9 trillion. What have we done? What has happened to this country and what is about to happen, could have been prevented. I think people are going to realize how they've been taken as fools, and when they wake up, those FEMA camps that have been built will become real useful. Not that I believe all that stuff surrounding the camps, but I do think that once a lot of the public realizes how foolish we and our leaders have been, they won't be happy. We had such a great thing going for us, and we let it deteriorate.

I've been reading about the economy probably everyday for five years, but I still find it hard to explain things because there is, not surprising, a lot of things to cover. Between all the news stories you hear, you begin to realize though just how many things are wrong, and the correction has to come eventually. The US economy, I can pretty safely say, can not continue on the way it has.

reply to post by themillersdaughter


I did say in the medium term and didn't deny there would be global pain. I was just saying that the US is not the crux of the world economy and we would most likely see a re-balancing of global wealth as a result of a US slump.

However, with a population of 2+ Billion, China already has a sizable middle class, which is growing. It will not be long before they are the ones demanding cheap Plasma TV's, fast cars and all the trappings of modern life.

As for the US companies employing foreigners, well....

Me thinks those "US" companies would cease to be exactly that. They could, easily, relocate HQ's or, worse yet for the USA, end up being bought by Indian and Chinese companies (as is happening now anyway) at rock bottom prices thanks to a devalued Dollar.

Just because Intel or GE are US-based companies now, does not hold true that they will be in the future. I'm sure they would continue having a sales presence, if there is a demand, but any meaningful parts of the business could be easily moved to another country and a foreign purchase makes this even more likely.

I wish there was a possibility that the dollars dive was just 'cyclical' but something no one seems to mention in here is the aspect that makes it so.

The US Dollar is debt. The money that most European countries trade in (especially since the central banks took you over with that whole 'Euro' scam) is debt. As long as the money is fiat driven and fractionally lent, it will remain painfully susceptible to these events.

These fluctuations occur because of the idiotic acceptance that fiat cash and fractional banking are a benefit to everybody. I'm sure most of you know that is not so. This crisis needs some more light shed on it. While we fight and struggle against which currency is best or what value fluctuations mean from a hazy economical perspective, the actual common sense solutions don't even seem to be considered. BACK CURRENCY WITH SOMETHING (gold, silver, shiny beads, I don't care). Make it a physical thing (again) that can't be 'virtually' manipulated by untrustworthy profiteers or horded by divine-righters, and other such 'noble' houses. It reduces us (the actual people - you know - for whom this 'money' exists) to pawns, and it becomes a game to those empowered (but not entrusted) by us.

And all along the architects of this scenario are the same people who somehow already have all the money (ironic, no?). Those who can put an end to world suffering by virtue of their immeasurable wealth will never feel a thing. These are people who NEVER want for a thing. They have never known hunger, or the financial dread many face everyday.
Don't you thin it's funny that there are those with enough money to actually pay off the US outright? What could possibly motivate these people, certainly not our benefactors, to restore financial order? Profit?

We have these troubles because we allowed ourselves to be stripped of the value the currency is supposed to represent.

This may or may not be the 'end of the dollar', but somehow I doubt it. Never count America out. Like it or not - a little piece of many nations have come here to help define this place, including yours. The only thing that can destroy us is our own unwillingness to believe those in power have screwed us over, and continue to do so, we can even see their future plans, and its all the same. To paraphrase many wise people who have noted before - America will be the engineer of her own demise, no other way is possible.


[edit on 18-3-2008 by Maxmars]

That's one thing about globalization, with loose regulation, American prosperity has been diluted and you can see the result is increased wealth of other countries. I don't think Americans will be happy working at salaries similar to India or China, but that's the trend in a global market and it will happen to jobs that can be outsourced.

"The US dollar is DONE!"

Does this mean that the Federal reserve along with the Federal government is done too? Goodie! This means more power to the people when there's more power to the individual states. Let the Federal government no longer be in charge of anything until they get back in charge with the national debt by going in the direction in paying it off instead of the opposite direction all the time!

reply to post by LLoyd45


But those figures are 8 years old. Have they continued to buy 70% of their imported goods from the US? I read somewhere that Canada has made an agreement with China to supply oil exclusively to them beginning in 2015. (I'm sorry, I'll have to find the source...and it could be only my interpretation of what I read.)

Well, I would suggest that now that Spring is almost here you should all run to your local stores and buy seeds and start planting them so you have something for your family to eat.

I have noticed many people at the store are picking up these veg. packages so I would suggest you get a few before they go. Heck call it training in learning a new trade.

My computer goes down a lot just in one day. I have no doubt many will have withdrawl when it goes down for all and we can not communicate. We have gotten lazy and we will suffer if we do not have plan b,c,d worked out to survive this kind of thing.

Manure makes things grow bigger and better by the way. HMMMMM, POOP WITH A PURPOSE!

reply to post by ghaleon12


If everyone earns the same, everything is fair, no? No more "Poor little Umbago earns less than a dollar a day, stitching chickens with felt..."

If everyone earns the same, relatively, then things would be better.

Originally posted by themillersdaughter
reply to post by LLoyd45

 

But those figures are 8 years old. Have they continued to buy 70% of their imported goods from the US? I read somewhere that Canada has made an agreement with China to supply oil exclusively to them beginning in 2015. (I'm sorry, I'll have to find the source...and it could be only my interpretation of what I read.)

Here's a more recent source.

I'm suprised no one's mentioned this (if I missed it I'm sorry). The Fed controls the value of currency pretty much world wide. In preparation for the "Amero" (north american version of the Euro) wouldn't the wisest choice be to devalue the American Dollar to pave the way. Look what happened in Europe. The value of various currencies began dropping so dramatically and so quickly that the Euro was seen as "saving the day". Just one more step toward a NAU. It's conspiritorial yes, but if you want to replace the currency of a country, it's pretty brilliant on the part of the Fed.

Our forefathers tried to protect us from it...
The Congress shall have Power To...coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.

Too bad Wilson glazed over that part of the constitution and sold that power to a global collection of foreign bankers.

I just hope that we Canadians don't stick to the Amero, because if the Amero bottoms out then we are stuck with a bad currency that no one will want to accept.

my worst fear is that it will be like Canadian Tire money, or even worse Monopoly money, where we can't even spend it outside our own country or something, like Sharper Image didn't even accept their own gift cards when they were going out of business.

I just hope we do like the British people did and protest the Amero. Because who knows how the CAD will fare vs the Amero, it could do a lot better because typically the USD is at par or a bit lower than the CAD same with the Mexican Peso.