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2006-08-24 15:03:12
Bertster7
Confused Pothead
+1,101|7028|SE London

cpt.fass1 wrote:

At least we have China inflating our Money so they can keep their products cheap. If they ever decide to dump it we'd be very screwed
Absolutely. The US owe China an insane ammount of money, many trillions of dollars.

The dollar has been falling against the Pound and even more against the Euro for years now.
https://newsimg.bbc.co.uk/media/images/40510000/gif/_40510857_dollar_euro1011_gra203.gif
This is why foreign countrys don't want to invest in it.

Alan Greenspan has warned that allowing huge US budget deficits to continue could have "severe" consequences.
I trust Alan Greenspan - I also trust the multitude of economic experts that predict that the US is headed for a recession. The fact that the Italians have moved their investments in the dollar to investments in the pound show that they trust these experts too.

The Bush administration has been prediting that these deficits will decrease and turn into a surplus for many years - their latest goal is to half the deficit (the largest the US have ever seen, in fact the largest deficit in any country's history) by 2009, there has been little evidence to suggest this will happen - the Bush tax cuts are in part responsible for this fiasco.

"Excessive fiscal deficits in the US could hurt the long-term sustainability of the American and global economies, the International Monetary Fund warned." (BBC.co.uk)

The G8 have asked the US to exercise fiscal constraint (which they have not done) at the summit in Rome. (Bloomberg.com)

There are bad times ahead for the dollar if the government don't do something about it soon.

If foreign governments keep liquidating their US bonds, the problems the dollar has been facing will be compounded.

KEN-JENNINGS wrote:

The Euro is overvalued, as is the Pound.  The Dollar is not going to lose any significant ground, both because of the strength of our market, and the fact that China and Japan are still buying our Treasury Bonds.

The countries you talked about have kept their currency because it is significantly stronger than both the Euro and the US Dollar, the two leading currencies in use throughout the world.
You don't seem to understand much about currency markets if the think the pound is stronger than the Euro. The fact that £1 is worth more than a Euro does not mean that the pound is a stronger currency. The Euro is a  stronger currency than the British pound. The strength of the US economic market (which actually had large trade deficits as well as the governments deficits, despite economic growth) is overated and is certainly not a match for the economies of the countries that have adopted the Euro.

Get rid of the Bush administration and the insane expenditure and lack of tax revenue that goes hand in hand with it and the dollar will rise and everything will be fine - otherwise.....

Last edited by Bertster7 (2006-08-24 15:14:47)

2006-08-24 17:56:29
unnamednewbie13
Moderator
+2,073|7218|PNW

The one thing I do agree with is that the US too often throws money around as freely as toilet paper. What's needed is a smaller overall government. You can't cut taxes and continue spending as normal...

Last edited by unnamednewbie13 (2006-08-24 17:57:04)

2006-08-24 19:05:52
EVieira
Member
+105|6925|Lutenblaag, Molvania
The fact that the interest rates in the US have stopped rising and that inflation and unemployment are under control seems to show that the US economy is quite strong enough and that the dollar is secure. But the insanely high deficit is a risk no matter how strong your economy is. I would definately exchange at least some of my US bonds for sterling or euro ones, just to be on the safe side.

On a side note, the Bush administration has destroyd the great work Clinton had done to the US economy. The growth with little or no inflation seen in the Clinton era was unprecedent.
"All truths are easy to understand once they are discovered;  the point is to discover them."
Galileo Galilei  (1564-1642)
2006-08-24 19:19:06
Bertster7
Confused Pothead
+1,101|7028|SE London

unnamednewbie13 wrote:

The one thing I do agree with is that the US too often throws money around as freely as toilet paper. What's needed is a smaller overall government. You can't cut taxes and continue spending as normal...
Exactly.

The Bush administration don't seem to understand you can only spend money you have. The US is very rich, but credit will only get you so far. If you rely on borrowing money, your currency and hence entire economic system begins to collapse.

Tax cuts and spending increases don't go together.

Bush has destroyed all Clinton's great work for the US economy - who says democrats waste money and republicans save it?

If you had shares following the same trend as the dollar has been, I would sell them. Just what the Italians have done.
2006-08-24 20:36:16
jonsimon
Member
+224|6942
Part of the growth seen in the 90s is unfairly attributed to clinton's policies. The truth is that during the period the stock market was a bull market. This is unrelated to federal policy. In fact, most economic changes are unrelated to federal changes. The defeceit, however, is directly related to the government.
2006-08-24 20:39:24
GunSlinger OIF II
Banned.
+1,860|7090

kr@cker wrote:

you just keep quiet and don't stop sending us your black market hi-flow toilets and cigarettes
america has the greatest tobacco in the world, without a doubt.
2006-08-24 21:36:07
cpt.fass1
The Cap'n Can Make it Hap'n
+329|7142|NJ
The one thing the Indians left us(that was messed up sorry if I offened). But China right now is going through the econimic boom that we had in the 90's which is making them very strong, and if they learned from our mistakes they will stay that way.

What excatly do we really export from our own country anyway?
2006-08-24 21:58:20
Bertster7
Confused Pothead
+1,101|7028|SE London

cpt.fass1 wrote:

The one thing the Indians left us(that was messed up sorry if I offened). But China right now is going through the econimic boom that we had in the 90's which is making them very strong, and if they learned from our mistakes they will stay that way.

What excatly do we really export from our own country anyway?
Not a lot of actual stuff. A lot of intelectual property. Designs from silicon valley, software, films, TV etc.

Not enough to be spending what Bush is spending though. Although if he reversed his tax cuts, rather than making them permanent, he could instantly raise another $600 billion a year, which would sort the budget out quite nicely.
2006-08-24 21:59:44
Phrozenbot
Member
+632|7062|do not disturb

cpt.fass1 wrote:

The one thing the Indians left us(that was messed up sorry if I offened). But China right now is going through the econimic boom that we had in the 90's which is making them very strong, and if they learned from our mistakes they will stay that way.

What excatly do we really export from our own country anyway?
Most rice, corn, soy, and all sorts of goodies. Our bread basket is the world's baby.
2006-08-24 22:10:08
Bertster7
Confused Pothead
+1,101|7028|SE London

Hellogoodsir wrote:

cpt.fass1 wrote:

The one thing the Indians left us(that was messed up sorry if I offened). But China right now is going through the econimic boom that we had in the 90's which is making them very strong, and if they learned from our mistakes they will stay that way.

What excatly do we really export from our own country anyway?
Most rice, corn, soy, and all sorts of goodies. Our bread basket is the world's baby.
Not that much rice - India and China account for the bulk of global rice production. Agricultural exports do not account for very much of the value of US exports.
2006-08-25 01:24:38
unnamednewbie13
Moderator
+2,073|7218|PNW

Bertster7 wrote:

unnamednewbie13 wrote:

The one thing I do agree with is that the US too often throws money around as freely as toilet paper. What's needed is a smaller overall government. You can't cut taxes and continue spending as normal...
Exactly.

The Bush administration don't seem to understand you can only spend money you have. The US is very rich, but credit will only get you so far. If you rely on borrowing money, your currency and hence entire economic system begins to collapse.

Tax cuts and spending increases don't go together.

Bush has destroyed all Clinton's great work for the US economy - who says democrats waste money and republicans save it?

If you had shares following the same trend as the dollar has been, I would sell them. Just what the Italians have done.
Anyone who takes courses in economics knows that altering the course of the US economy is similar to changing the speed of a freight train. A president, while in office, inherits whatever sort of acceleration the economy was undergoing before his term. Clinton was (in)famous for riding that wave, so to speak.

And, as I recall, many Democrats were irritated at Clinton for caving in to Republican demands (AEDPA, etc.).
2006-08-25 01:24:51
Phrozenbot
Member
+632|7062|do not disturb

Bertster7 wrote:

Hellogoodsir wrote:

cpt.fass1 wrote:

The one thing the Indians left us(that was messed up sorry if I offened). But China right now is going through the econimic boom that we had in the 90's which is making them very strong, and if they learned from our mistakes they will stay that way.

What excatly do we really export from our own country anyway?
Most rice, corn, soy, and all sorts of goodies. Our bread basket is the world's baby.
Not that much rice - India and China account for the bulk of global rice production. Agricultural exports do not account for very much of the value of US exports.
"In agriculture, the country is a top producer of corn, soy beans, rice, and wheat", straight from the US article on wikipedia. I checked rice article and it looked a little different. Hmms, I'm confused. Oh well... we do though have one thing we like to export; jobs.
2006-08-25 07:10:42
Bertster7
Confused Pothead
+1,101|7028|SE London

Hellogoodsir wrote:

Bertster7 wrote:

Hellogoodsir wrote:


Most rice, corn, soy, and all sorts of goodies. Our bread basket is the world's baby.
Not that much rice - India and China account for the bulk of global rice production. Agricultural exports do not account for very much of the value of US exports.
"In agriculture, the country is a top producer of corn, soy beans, rice, and wheat", straight from the US article on wikipedia. I checked rice article and it looked a little different. Hmms, I'm confused. Oh well... we do though have one thing we like to export; jobs.
mmmmm.

I also thought China was top producer of wheat, then India. Soy beans too.

Someone on another thread claimed the US were the worlds 3rd largest exporter of oil. Which I find absurd as the US consumes nearly triple the amount of oil it produces. Maybe worlds 3rd largest producer - but that's different.
2006-08-27 09:04:46
Horseman 77
Banned
+160|7284

Spumantiii wrote:

pfft I'll take an informed man's word for it, obviously
Still waiting for the sky to fall ? dont hold your breath.
2006-08-27 09:06:44
OXTHAFOX
Member
+18|7113

elite wrote:

SO who whats happens then?? the value of the dollor goes down??
The world will have a problem! Ah well, if only I could keep playing BF2 I couldnt care less....
2006-08-27 11:36:28
herrr_smity
Member
+156|7074|space command ur anus
i know this is going to seem dumb BUT what is a sterling is it like the pound or something
2006-08-27 11:41:34
messfeeder
Member
+31|6974|Gotham
I think this is all a ploy to pressure everyone toward using a single monetary unit worldwide, starting with most powerful industrialized countries.
2006-08-31 01:24:32
Bertster7
Confused Pothead
+1,101|7028|SE London

herrr_smity wrote:

i know this is going to seem dumb BUT what is a sterling is it like the pound or something
Pounds Sterling. British currency.

unnamednewbie13 wrote:

Bertster7 wrote:

unnamednewbie13 wrote:

The one thing I do agree with is that the US too often throws money around as freely as toilet paper. What's needed is a smaller overall government. You can't cut taxes and continue spending as normal...
Exactly.

The Bush administration don't seem to understand you can only spend money you have. The US is very rich, but credit will only get you so far. If you rely on borrowing money, your currency and hence entire economic system begins to collapse.

Tax cuts and spending increases don't go together.

Bush has destroyed all Clinton's great work for the US economy - who says democrats waste money and republicans save it?

If you had shares following the same trend as the dollar has been, I would sell them. Just what the Italians have done.
Anyone who takes courses in economics knows that altering the course of the US economy is similar to changing the speed of a freight train. A president, while in office, inherits whatever sort of acceleration the economy was undergoing before his term. Clinton was (in)famous for riding that wave, so to speak.

And, as I recall, many Democrats were irritated at Clinton for caving in to Republican demands (AEDPA, etc.).
You might say that. But Bush has done a pretty good job of destroying all the extra money the government had to play with and managed to turn it into a deficit almost immediately. Now the deficit has hit record levels on more than one occasion - the global economy is not undergoing simillar changes.

Last edited by Bertster7 (2006-08-31 01:28:41)

2006-08-31 02:52:21
JimmyBotswana
Member
+82|7032|Montreal
Two words: Buy gold.
2006-08-31 05:28:07
Bertster7
Confused Pothead
+1,101|7028|SE London

JimmyBotswana wrote:

Two words: Buy gold.
Gold is a nice solid investment. It doesn't move about much, but that also means it doesn't go up (*edit* - much, although it has gone up a bit lately). Invest in things you think will rise - gold isn't that great.

Last edited by Bertster7 (2006-08-31 05:28:50)

2006-08-31 20:14:21
JimmyBotswana
Member
+82|7032|Montreal
Gold doesn't go up much EXCEPT in times of instability, like say when there is permanent war, high energy costs, terrorism, and a tanking dollar leading to global recession. In times like that, gold can skyrocket. It is up over 100% in a year and a half. That isn't movement for you?
2006-09-01 03:00:40
Rosse_modest
Member
+76|7223|Antwerp, Flanders

Bertster7 wrote:

JimmyBotswana wrote:

Two words: Buy gold.
Gold is a nice solid investment. It doesn't move about much, but that also means it doesn't go up (*edit* - much, although it has gone up a bit lately). Invest in things you think will rise - gold isn't that great.
Hasn't gold actually declined in value over the last couple of years?
2006-09-01 10:22:56
Jenkinsbball
Banned
+149|6995|USA bitches!
It's funny, they screw up our dollar, when it was our fucking money that helped their shitty countries come back after the war. Fucking worthless Europeans.
2006-09-01 10:36:23
jonsimon
Member
+224|6942

Jenkinsbball wrote:

It's funny, they screw up our dollar, when it was our fucking money that helped their shitty countries come back after the war. Fucking worthless Europeans.
They don't owe us squat. Get off your high horse.
2006-09-01 10:38:32
Jenkinsbball
Banned
+149|6995|USA bitches!
Right, I'm sure the billions and billions of dollars we've loaned them have been paid back. If we called back all outstanding loans due to our government, we'd bankrupt the planet.

I'm not saying that anyone owe's us money back for us giving money for them to rebuild their country, but I'm sure we've given plenty after that.

 

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