Is doomsday coming for the American dollar?

[luiz]

Coming? Where have you been for the last 6 months? Canadian dollars are worth more than American dollars. How much more doomsday can it get?

No, they aren't? Where have you been in the last month? Canadian dollars are worth considerably less than the yank counterpart.

 

[Bast]

Like a moth to a flame burnt by the fire
Ron Paul freaks flock to threads with doomsday attire

 

[Cutlass]

No it isn't especially when it comes after a long period of high inflation, like we just had. If prices go down, but wages remain stable, the American consumer wins. The only time deflation is destructive, is if wages fall too.

We haven't had a long period of high inflation since the 70s. We've had low inflation. That's why the Fed left interest rates low so long.

Deflation means businesses have lower revenue. That means layoffs or wage cuts. You can't have deflation without wage cuts.

Nuh - uh!!

Well, as long as it remains a market economy, it's true. To chose deflation is to chose to destroy the economy. It's an insane choice.

 

[GoodGame]

The US economy is not heading for doomsday so neither will the dollar. The Euro may be strong enough economically and may be backed by enough political anti-Americanism to usurp much of the dollar's past use as an international currency.

The US is not poised to become Euro-slaves, nor to spontaneously dissolve, nor be forced to sign into the EU and adopt the Euro. The dollar will continue to persist and the grounds that the US economy is not mortally wounded. Dumping US debt into overseas inflation will probably no longer be a US luxury.

 

[Narz]

Like a moth to a flame burnt by the fire
Ron Paul freaks flock to threads with doomsday attire

Good point. Everything's fine. Business as usual FTW!

 

[Bast]

Good point. Everything's fine. Business as usual FTW!

Everything is far from fine. I've been talking about global warming for years.

But I just find it funny that Ron Paul supporters - upon their "God" losing the primaries - have now turned to the economic crisis as vindication. It's almost like they're happy that this is going on and as long as it proves that their "God" is right.

 

[Quiet Sound]

You seem to be the only one here concerned with Paul. Endlessly, unceasingly concerned with him.

No, they aren't? Where have you been in the last month? Canadian dollars are worth considerably less than the yank counterpart.

Only in the short term. In a year or two that $60 Canadian I have left over from my last trip north will be enough to buy a dozen houses in the US.

 

[Kerozine]

I wouldn't be surprised, what with having to borrow a record 550B$ to cover an estimated 988B$ deficit..

 

[Narz]

Everything is far from fine. I've been talking about global warming for years.

But I just find it funny that Ron Paul supporters - upon their "God" losing the primaries - have now turned to the economic crisis as vindication. It's almost like they're happy that this is going on and as long as it proves that their "God" is right.

How is that different from any other ideologists?

 

[Whomp]

I think you should check your source for this diatribe.

 

[emzie]

Coming? Where have you been for the last 6 months? Canadian dollars are worth more than American dollars. How much more doomsday can it get?

Well for starters, that's not a doomsday scenario for the US, it's a doomsday scenario for Canada. This country's economy has been based on a weaker dollar.

And the US dollar climbed back above the Canadian dollar in mid July. We're back to ~.85, up 7 cents from a week ago.

 

[Neomega]

We haven't had a long period of high inflation since the 70s. We've had low inflation. That's why the Fed left interest rates low so long.

we just went through about 4-6 years of massive inflation. The numbers were cooked to make it look less severe than it was, but basic costs, gas, food, rent, heating, ... all doubled or more in 5 years.

That is what... 10 -12% inflation, yoy? And yes, CPI and inflation calculations were changed to paint a rosier picture.

Deflation means businesses have lower revenue. That means layoffs or wage cuts. You can't have deflation without wage cuts.

and lower raw material and transportation costs, so revenue may be down, but that does not mean profit necessarily goes down. I am sure FDX is going to start getting some stellar numbers in the upcoming quarters.

 

[Cutlass]

we just went through about 4-6 years of massive inflation. The numbers were cooked to make it look less severe than it was, but basic costs, gas, food, rent, heating, ... all doubled or more in 5 years.

That is what... 10 -12% inflation, yoy? And yes, CPI and inflation calculations were changed to paint a rosier picture.



and lower raw material and transportation costs, so revenue may be down, but that does not mean profit necessarily goes down. I am sure FDX is going to start getting some stellar numbers in the upcoming quarters.

So everyone makes less and the real price of their debts go through the roof. Meaning everyone is worse off.

 

[Theige]

we just went through about 4-6 years of massive inflation. The numbers were cooked to make it look less severe than it was, but basic costs, gas, food, rent, heating, ... all doubled or more in 5 years.

That is what... 10 -12% inflation, yoy? And yes, CPI and inflation calculations were changed to paint a rosier picture.

You're going to have to provide sources for that, if you don't want people to think you're just another crackpot.

 

[Neomega]

You're going to have to provide sources for that, if you don't want people to think you're just another crackpot.

I know it was a fortune article, but it was about a month ago I read it... I'll have to find it.

still looking, but, from http://blogs.denverpost.com/lewis/files/2007/12/ratkai-maket-outlook-2007-12.pdf ...

Perhaps the most controversial adjustment concerns
quality improvements of goods and (harder to measure)
services. Known among econo-geeks as “hedonic”
adjustment, it tries to combine improvements in quality
with price changes. Basically, the BLS uses hedonic
adjustment to try and quantify gains of quality in a
particular good in order to offset gains in price. For
instance, if a computer operated at 50 MB (megabytes) of
memory a year ago, and 1000 MB today, the BLS would
claim the price of the computer today reflects much
higher quality, so the price must be adjusted downward
dramatically to account for quality. The effect is to
reduce the CPI even if the good cost more in dollars.

 

[Neomega]

So everyone makes less and the real price of their debts go through the roof. Meaning everyone is worse off.

so... you missed th epoint of what I wrote. revenue =/= income. income = revenue - costs.

 

[crabapple]

I think you should check your source for this diatribe.

Explain whats wrong with the source for me then

 

[classical_hero]

Thing have been far worse and yet America has survived.

 

[Narz]

Thing have been far worse and yet America has survived.

That's like saying Uncle Fred has survived three heart attacks & a stroke therefore he's immortal.

 

[RedRalph]

That's like saying Uncle Fred has survived three heart attacks & a stroke therefore he's immortal.

and what exactly is wrong with that logic? No one i know who has been sick at any stage of their live and survivied has ever subsequently died