Sinking Currency, Sinking Country

[Emancipation 2]

Unfortunately, the Fed seems only interested in cutting the interest rate and depreciating the dollar I hope they change their minds...

A weak dollar isn't necessarily a bad thing (except for oil prices).

Nope it will be good for cross border shopping for one thing.. my brother & SIL waited in line in HOLTON ME for 1/2 hr yesterday to get through CDN customs (which is unheard of from our experience through that POE).. they said they were all CDN shoppers who head to Bangor for some Christmas shopping.. They couldn't get a hotel room in Bangor on Saturday night either perhaps for the same reason (couple hrs from the CDN border)..

Walmart in the Maritime Provinces just announced that they will be selling all their books at US prices until Christmas to try to get CDNS to "buy at home"..

[Ban Hammer 12,879]

we need to invade canada and drive down their dollar

[Dr. A ♥ O 203]

When you're over grown I don't see why you need more growth. Why not go on a diet. Sure it sucks at first but then you get better and more fit.

[Krikit 1,163]

The Canadian dollar, which used to be worth 65 cents, is worth more than the U.S. dollar for the first time in half a century.

I can guarantee you that this is erroneous information. The Canadian dollar was higher than the US dollar back in the 80's. Can't recall if it started changing in the early 90's or the late 80's but that's definitely far less time than a half century. Kinda hard to take the rest of the writer's article seriously when he can't even get one of his first "facts" right. Or maybe he's just not good with math.

Edited November 5, 2007 by Krikit

[Emancipation 2]

we need to invade canada and drive down their dollar

Don't worry.. historically the CDN dollar is tied to the US dollar.. i think oil/ resources is one thing Canada has going for her right now that is keeping her currency high.. (oh...and political stability). Last time the CDN dollar took a slam after being on par with the US it was over Separatists in Quebec making the economic and political scenes pretty unstable.

http://www.cbc.ca/cp/business/071102/b1102123A.html

Edited November 5, 2007 by Emancipation

[Jasman0717 8]

When I first went to the Philippines the ratio was 58.5 pesos to the dollar. It is now 43.6 pesos to the dollar.

[joelunchbox 0]

Sinking Currency, Sinking Country

by Patrick J. Buchanan

Posted 11/03/2007 ET

Updated 11/03/2007 ET

The euro, worth 83 cents in the early George W. Bush years, is at $1.45.

The British pound is back up over $2, the highest level since the Carter era. The Canadian dollar, which used to be worth 65 cents, is worth more than the U.S. dollar for the first time in half a century.

Oil is over $90 a barrel. Gold, down to $260 an ounce not so long ago, has hit $800.

Have gold, silver, oil, the euro, the pound and the Canadian dollar all suddenly soared in value in just a few years?

Nope. The dollar has plummeted in value, more so in Bush's term than during any comparable period of U.S. history. Indeed, Bush is presiding over a worldwide abandonment of the American dollar.

Is it all Bush's fault? Nope.

The dollar is plunging because America has been living beyond her means, borrowing $2 billion a day from foreign nations to maintain her standard of living and to sustain the American Imperium.

The prime suspect in the death of the dollar is the massive trade deficits America has run up, some $5 trillion in total since the passage of NAFTA and the creation of the World Trade Organization in 1994.

In 2006, that U.S. trade deficit hit $764 billion. The current account deficit, which includes the trade deficit, plus the net outflow of interest, dividends, capital gains and foreign aid, hit $857 billion, 6.5 percent of GDP. As some of us have been writing for years, such deficits are unsustainable and must lead to a decline of the dollar.

A sinking dollar means a poorer nation, and a sinking currency has historically been the mark of a sinking country. And a superpower with a sinking currency is a contradiction in terms.

What does this mean for America and Americans?

As nations realize that the dollars they are being paid for their products cannot buy in the world markets what they once did, they will demand more dollars for those goods. This will mean rising prices for the imports on which America has become more dependent than we have been since before the Civil War.

U.S. tourists traveling to the countries whence their ancestors came will find that the money they saved up does not go as far as they thought.

U.S. soldiers stationed overseas will find the cost of rent, gasoline, food, clothing and dining out takes larger and larger bites out of their paychecks. The people those U.S. soldiers defend will be demanding more and more of their money.

U.S. diplomats stationed overseas, students and businessmen are already facing tougher times.

U.S. foreign aid does not go as far as it did. And there is an element of comedy in seeing the United States going to Beijing to borrow dollars, thus putting our children deeper in debt, to send still more foreign aid to African despots who routinely vote the Chinese line at the United Nations.

The Chinese, whose currency is tied to the dollar, and Japan will continue, as long as they can, to keep their currencies low against the dollar. For the Asians think long term, and their goals are strategic.

China -- growing at 10 percent a year for two decades and now growing at close to 12 percent -- is willing to take losses in the value of the dollars it holds to keep the U.S. technology, factories and jobs pouring in, as their exports capture America's markets from U.S. producers.

The Japanese will take some loss in the value of their dollar hoard to take down Chrysler, Ford and GM, and capture the U.S. auto market as they captured our TV, camera and computer chip markets.

Asians understand that what is important is not who consumes the apples, but who owns the orchard.

Other nations that have kept cash reserves in U.S. Treasury bonds and T-bills are watching the value of these assets sink. Not fools, they will begin, as many already have, to divest and diversify, taking in fewer dollars and more euros and yen. As more nations abandon the dollar, its decline will continue.

The oil-producing and exporting nations, with trade surpluses, like China, have also begun to take the stash of dollars they have and stuff them into sovereign wealth funds, and use these immense and growing funds to buy up real assets in the United States -- investment banks and American companies.

Nor is there any end in sight to the sinking of the dollar. For, as foreigners demand more dollars for the oil and goods they sell us, the trade deficit will not fall. And as the U.S. government prints more and more dollars to cover the budget deficits that stretch out -- with the coming retirement of the baby boomers -- all the way to the horizon, the value of the dollar will fall. And as Ben Bernanke at the Fed tries to keep interest rates low, to keep the U.S. economy from sputtering out in the credit crunch, the value of the dollar will fall.

The chickens of free trade are coming home to roost.

http://www.humanevents.com/article.php?id=23218

No one wants to mention how the Iraq war spending is affecting this? How much a month is being poured into Iraq?

[David-Rhosie 0]

When I first went to the Philippines the ratio was 58.5 pesos to the dollar. It is now 43.6 pesos to the dollar.

I know the feeling. When Rhosie and I first met; the PHP was at about 53/1USD. I just always looked at it as 2 cents for one peso. Not it's dipping closer to 40 every day. The lowest we've gotten back when I send her money is 42. It hurts when my money can't get her everything that it's intended for. I starve myself for her and still can't "lavish" upon her as I want. Seriously hoping for a turn around in the next 6 years.

[bgreed 0]

Congress needs to get out of their business as usual mindset. Free trade was and is a bad idea that is why congress has the authority to levy tariffs. As far as raising taxes absolutely the worst idea. When your economy is in distress the last thing you want to do is raise taxes and stop nearly all economic growth. If anything taxes remain fixed or need to be decreased along with all the BS social programs and foreign government give away programs. If those nations want to vote against us in the UN let'em it's just a useless let's all feel good organization anyway. As far as the war in Iraq the spending there is peanuts compared to the rest.

[almaty 19]

Congress needs to get out of their business as usual mindset. Free trade was and is a bad idea that is why congress has the authority to levy tariffs. As far as raising taxes absolutely the worst idea. When your economy is in distress the last thing you want to do is raise taxes and stop nearly all economic growth. If anything taxes remain fixed or need to be decreased along with all the BS social programs and foreign government give away programs. If those nations want to vote against us in the UN let'em it's just a useless let's all feel good organization anyway. As far as the war in Iraq the spending there is peanuts compared to the rest.

lol.."peanuts in iraq'.................yeah right...........just a drop in the bucket

[Dr. A ♥ O 203]

Wrut row Shaggy.

[Addie_Goodvibes 0]

The chickens of the 3rd world are coming home to roost.

So are the Third world countries Citizens. Illegals are invading USA destroying our economy

bringing 3rd world economy right onto our doorstep

Yet If the USA tries to enforce its own laws to ensure our future security, prosparity & freedoms we are labeled as racists.

We should just sit and let The worlds poor enter illegally drain our social services and ruin our economy.

Yeah right

[Jaseball 0]

Actually the problem is each dead generation of American politicians, citizens, businessmen, etc., sells out the future generations, multiplies the problems, then dies off and leaves their kids and grandkids to either make the problem worse or be forced to deal with it. Not a single generation has dealt with the problem yet.

If we froze all our current government and business actions and started to do the 'right,' thing it would take a few generations of suffering before we got back to even. This isn't even possible because our foreign aid is also geared towards propping up the world. Pakistan is a good recent example.

Far easier to run up debt, live the 'good,' life, then die off. Problem is the US government debt is so massive and if the US falls we take almost everyone down with us.

The Asian example is totally true with their mindset, ability to suffer now and always looking towards the future.

I'd say stocking up on guns, ammo, food/water, medicine, fuel, cigarettes and liquor would be a good idea.

The US can't even take care of Katrina victims or re-build the WTC construction site. Let's open our eyes a bit and realize just how bad things can really become.

[Dr. A ♥ O 203]

I got my guns and my ammo. But I got nothing to protect but my body and mind.

No property. No people. Not even a water supply. I'll be one of those mass exoddus American's to my SO's country where they still have their land and all the families live together in big houses built like apartments.

[Ban Hammer 12,879]

Actually the problem is each dead generation of American politicians, citizens, businessmen, etc., sells out the future generations, multiplies the problems, then dies off and leaves their kids and grandkids to either make the problem worse or be forced to deal with it. Not a single generation has dealt with the problem yet.

If we froze all our current government and business actions and started to do the 'right,' thing it would take a few generations of suffering before we got back to even. This isn't even possible because our foreign aid is also geared towards propping up the world. Pakistan is a good recent example.

Far easier to run up debt, live the 'good,' life, then die off. Problem is the US government debt is so massive and if the US falls we take almost everyone down with us.

The Asian example is totally true with their mindset, ability to suffer now and always looking towards the future.

I'd say stocking up on guns, ammo, food/water, medicine, fuel, cigarettes and liquor would be a good idea.

The US can't even take care of Katrina victims or re-build the WTC construction site. Let's open our eyes a bit and realize just how bad things can really become.

and porn