The demise of the US$ ?

[Drifterwood]

It might be easy to dismiss, Venezuela, Russia and Iraq wanting to trade in Euros, but just recently suppliers from the Far East in my area of work have begun asking to be paid in Euros rather than US$.

Trickles have a tendency to become floods in financial markets.

 

[unabear09]

If the world starts dealing oil in Euros this country is FUCKED! We think gas and plastic products are bad now..... screw the resession this country is in, we'll be in one of the biggest (if not the worst) depression this world has ever seen

 

[bzemek]

The U.S. dollar value is controlled by the federal reserve through the money supply. The value of the euro is controlled by the European system of central banks which uses a combination/conversion to establish value.

Apparently in Zeitgeist it outlines an agreement that the U.S., Mexico, and Canada have agreed to develop the "amero." Which will be a joint monetary unit.

(obviously establishing other problems, i.e. the violation of the constitution and the movement toward a global world government=1984)

 

[scoobkill]

The U.S. dollar value is controlled by the federal reserve through the money supply. The value of the euro is controlled by the European system of central banks which uses a combination/conversion to establish value.

Apparently in Zeitgeist it outlines an agreement that the U.S., Mexico, and Canada have agreed to develop the "amero." Which will be a joint monetary unit.

(obviously establishing other problems, i.e. the violation of the constitution and the movement toward a global world government=1984)

Hate to break it to you bud, but there isn't anything in the constitution about combining other currencies. As a matter of fact if there was, it would have already been broken when the federal reserve created the federal banks unifying the states currencies (as there were many types back in the day and that has it's own bullion/Adam Smith Wealth of Nations Problems, but I digress). As sad as it is combining with Canada right now would only help. Back to you Drifterwood, that is super bad news. Especially since we have such an awful trade deficit (For those of you who care and don't readily understand, as you've heard obviously it's bad the way we buy a lot more from countries than what we sell, but what keeps that in balance is capital investment into dollars. If that goes to Europe, we're fucked.)

 

[TurkeyWithaSunburn]

Nobody wants the dollar anymore because it's realized that we will never be able to pay off the debts, national, personal,corporate that we've accumulated. I think we're only a few years away from becoming a 3rd world country financially.

Surging oil prices in the past few years have decreased the need for dollars. Such as during the 90's and the Russian economic crisis up to 95% of their foreign currency reserves were US Dollars. Since the dollar is so low relative to other currencies oil producing countries are boosting the price to make up for the relative loss in value. Oil is priced in US Dollars. I'm pretty certain that if OPEC (which includes Saudi Arabia) ever went with something other than US Dollars there would be a war for oil in saudi. The quid pro quo saudi oil for US protection/supplies arms.

General inflation has also eroded the value somewhat. A 1945 "dollar" is only worth 5cents today because of inflation. Somewhere online there is a CPI inflation calculator.


And don't forget who controls the federal reserve... member banks. The money of the US is under the control of PRIVATE enterprise!

 

[bzemek]

Hate to break it to you bud, but there isn't anything in the constitution about combining other currencies. As a matter of fact if there was, it would have already been broken when the federal reserve created the federal banks unifying the states currencies (as there were many types back in the day and that has it's own bullion/Adam Smith Wealth of Nations Problems, but I digress). As sad as it is combining with Canada right now would only help. Back to you Drifterwood, that is super bad news. Especially since we have such an awful trade deficit (For those of you who care and don't readily understand, as you've heard obviously it's bad the way we buy a lot more from countries than what we sell, but what keeps that in balance is capital investment into dollars. If that goes to Europe, we're fucked.)

Ah my bad, my brain wanders at early times in the morning, I got caught up in the Fed and unapportioned taxes. Good call.

 

[Chronic08]

It isn't just in Zeitgeist; Canada, Mexico and the US becoming the North American Union (similar to the European Union) is a very real issue that is happening. With that will come open borders, a new currency (the Amero) and a new set of laws to replace the constitution, among other things.

I'm honestly too tired to go on about it anymore though.

 

[amhersthungboi]

As an American living abroad, it has been interesting (and depressing) to watch the slide of the USD. When I arrived in Oz, 1 AUD was worth .74 USD. Today it is worth .94.

That is depressing in an obvious sense, it isn't all rain clouds. As the USD declines, import of American goods becomes more attractive to foreign markets since, in a sense, the American goods are "discounted". A product at USD 100 would have been AUD 135, but is now AUD 106. Indeed, you see this both in markets introducing new American lines, but also in the average consumer who is more willing to buy American goods online. Additionally, the US becomes more attractive to tourists since their AUD, CAD, Euro, L, can go further than they would have before.

In a very long term sense, it is bad, especially if the currency of note becomes the Euro. I seriously doubt a North American currency would do much to help us, either, since the US and Canadian currencies are at near parity (and no real place to go but down), and the peso isn't exactly an economic powerhouse.

Only strong economic stewardship is going to help the currency, and continually slashing interest rates isn't helping, especially as the Commonwealth nations are raising their rates to high levels. More grassroots programs are needed to infuse wealth at the bottom to entice individuals to take loans. If you have no money, it doesn't matter if rates are 5% or 2.5% ... you can't borrow anyhow. I think that's been the Fed's (and the Bush admin's) problem in dealing with his whole issue. Cutting away at interest rates isn't doing anything but sending currency investors running to their nearest Euro or Commonwealth currency.

 

[deleted136887]

It's been said before.... The chickens are coming home to roost. Which is nothing to crow about, by me, or any-one else. We(the world) rely absolutely on the financial stabillity that the US has been in the world. BUT the capital has been frittered awy by that genius in the white house and his cronies. Dark days ahead for all us. For us expats getting paid in USD, we are all trying to renegotiate rates in Sterling or Euros. The trickle will become a flood, when you are in a 3rd world shithole and a local taxi tells you to pay him in local currency and stuff your Dollars.

 

[vince]

Thankfully I take my salary in Euros. It hit $1.56 today. I have some friends who work for U.S. firms and get paid in USD's and they are having a real hard time of it since they pay their rent and so many other expenses in euros.

The upside for the US should be on the export side. I am currently buying for a 5m € project and am getting nearly all the materials in the US. We'll just load everything into two containers and ship it. At a trade fair I attended in Amsterdam last fall, the American manufacturer's booths were the busiest because the buck was around 1.42.

 

[faceking]

Nobody wants the dollar anymore because it's realized that we will never be able to pay off the debts, national, personal,corporate that we've accumulated. I think we're only a few years away from becoming a 3rd world country financially.

Surging oil prices in the past few years have decreased the need for dollars. Such as during the 90's and the Russian economic crisis up to 95% of their foreign currency reserves were US Dollars. Since the dollar is so low relative to other currencies oil producing countries are boosting the price to make up for the relative loss in value. Oil is priced in US Dollars. I'm pretty certain that if OPEC (which includes Saudi Arabia) ever went with something other than US Dollars there would be a war for oil in saudi. The quid pro quo saudi oil for US protection/supplies arms.

General inflation has also eroded the value somewhat. A 1945 "dollar" is only worth 5cents today because of inflation. Somewhere online there is a CPI inflation calculator.


And don't forget who controls the federal reserve... member banks. The money of the US is under the control of PRIVATE enterprise!

this is riddled with error on any notion of economic theory... where to begin...

 

[8.5x6]

I'm happy with my Canadian $. It's doing rather well for the first time in my life, and I think in part it's due to surging oil revenue that we can sell at top prices. Not a permanent solution, but at least an influx of cash.

At the same time, this rising domestic dollar should allow me to take my first trip beyond New York State in the U.S. because as a starving student I can now afford it...

Maybe now I can just get lost on the backroads! lol

 

[8.5x6]

I guess my point is that it's a fine line between the falling USD encouraging international investment and that same falling USD being able to compete internationally to import necessary goods and services for its population.

 

[hotbtminla]

It might be easy to dismiss, Venezuela, Russia and Iraq wanting to trade in Euros, but just recently suppliers from the Far East in my area of work have begun asking to be paid in Euros rather than US$.

Trickles have a tendency to become floods in financial markets.

I've noticed the same thing starting to happen in the entertainment industry.

As well, one of my corporate clients (US co) earlier this week shifted to a euro-based comp policy for all American employees based abroad for consulting projects because "they can't afford to work overseas with their US$ salaries."

 

[Drifterwood]

this is riddled with error on any notion of economic theory... where to begin...

I have an economic theory - stampeding sheep.

 

[transformer_99]

Well, if the US dollar is so worthless, how come my employer isn't giving them away ?

 

[dong20]

Well, if the US dollar is so worthless, how come my employer isn't giving them away ?

It's not worthless, just worth less. It's a subtle difference, but an important one.

 

[simcha]

Well first we'll start calling our greenbacks the American Peso.

Then we can devalue it so that a loaf of bread could cost 10,000 American Pesos.

Then we can remove three zeros and have the New American Peso.

Then we devalue that and join the rest of the countries in Latin America who play this game constantly.

It might make sense to join us all under the Amero. Perhaps we would start with a North American Amero up here and the South Americans can start with a South American Amero. Then we can devalue these currencies to the point of stupidity and unite under the New Combined Amero and call it the N.C.A. Then we can devalue that and create a new currency called the Consolidated American Combined Amero or just call it CACA.

 

[kalipygian]

Well first we'll start calling our greenbacks the American Peso.

Then we can devalue it so that a loaf of bread could cost 10,000 American Pesos.

Then we can remove three zeros and have the New American Peso.

Then we devalue that and join the rest of the countries in Latin America who play this game constantly.

It might make sense to join us all under the Amero. Perhaps we would start with a North American Amero up here and the South Americans can start with a South American Amero. Then we can devalue these currencies to the point of stupidity and unite under the New Combined Amero and call it the N.C.A. Then we can devalue that and create a new currency called the Consolidated American Combined Amero or just call it CACA.

Are you in line to be fed chair in the next administration?

 

[simcha]

Are you in line to be fed chair in the next administration?

Heck, I couldn't possibly do any worse than Greenspan or the new lacky, Bernanke. :wink:

And don't you relish the dream of the day when we can all unite under the One Currency that will have us all counting in CACA?