BF2S Forums yay its over!

NantanCochise wrote:

nickb64 wrote:

DoctaStrangelove wrote:

Just what happens if this is true, and the economy does recover by the end of the year and then Obama is able to balance the budget by 2012 or so?

Never going to happen. He wants to fu*k the country.

LOL, but youre a Republican!

I would not call myself a Republican, but a Conservative.
The Republican Party has been basically Democrat-lite since Reagan's Presidency ended.

What happens when Republicans do not hold true to the founding values the US was built on is that they lose power.

When a true Conservative (like Reagan) ran, he won by huge landslides both times.

1980: http://upload.wikimedia.org/wikipedia/c … ge1980.svg

1984: http://upload.wikimedia.org/wikipedia/c … ge1984.svg

It has been shown that when the American People are given the option of Democrat-Lite and Democrat, they usually choose Democrat, but given the choice between Democrat and a True Conservative, they tend to choose Conservatism by a landslide.

The recent Tea Parties show that Conservatism is not dead in America, as the MSM would lead us to believe. The Tea Parties also show that there is lots of Grassroots support for fiscal responsibility, which is a main position of Conservatism. We need to, rather than go down the road to a Statist society, cut taxes and spending to give the economy a boost and help people, rather than spend more to give the government control they were not given by the Constitution, which violates the 10th Amendment: "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."

Social Entitlement programs such as Medicare, Medicaid, and Social Security are essentially bankrupt, as they owe more than $50 Billion(I think it's actually $50 Trillion)

A low dollar is a good thing for a country with a lot of debt, especially debt valued in your own currency which something like 90% of the US's is.
It firstly makes domestic products much more desirable then imports stimulating the economy and reducing the CAD.
It makes exports more desirable to other countries stimulating the economy and reducing the CAD.
And if you have any reserves of foreign currency (which everyone does) it can be sold at a profit to pay back some of the debt.

Because your debt is mostly in $US, a falling currency will hardly effect what is owed but will give your economy many benefits.

There are 2 major concerns though if the dollar should fall too far.
1. Oil, it's currently traded in $US, so you never face exchange rate risk. But as OPEC controls most of the oil supply, should they see the dollar fall too far and they start losing lots of money, they will stop trading is $US and start trading in (probably) Euros. This will have a two fold effect. Instantly overnight oil price in the US will skyrocket (hampering economic growth), and from then on the US will face exchange rate risk.

2. People will stop purchasing your debt, or if they do will require it in their own (or another major) currency, bringing in exchange rate risk. This though could actually work in your favour, should you sell a lot of debt in Euros when the dollar is devalued, then when the economy (and dollar) picks up again, as it most likely will, your debt owing will be much less then it was before.

What I don't understand is why you are so scared about a falling dollar?
Sure overseas holidays and plasma screens will be more expensive, but think of the benefits.

A major reason why China is buying US bonds is to keep their currency low to increase trade advantage and exports. As the US is easily Chinas major trade partner it is their interest to not let the US economy totally collapse.