Do we want the dollar to sink like it is sinking right now?

[xultar]

I can't figure this situation out. I was thinking that since * is so economically minded that he'd be on this dollar thing like stink on poop. /sarcasm

The dollar is sinking to new lows. Is this what we want? Why isn't he doing anything about the impact of a sinking dollar? Is his lack of activity good for his friends?

[tk2kewl]

1. I think bushCo is playing craps with dollar and the economy

the falling dollar is not necessarily all bad. it makes American products cheaper on the global market and it makes imports more expensive at home. this helps to balance the trade deficit. but at some point the dollar could collapse and be permanently supplanted with the euro as the predominant world currency.

[InvisibleBallots]

4. It's not helping the trade deficit now

In fact, even as the dollar is dropping like a rock, the trade deficit gets worse. You can probably thank Reagan, Bush Sr., and Bill Clinton for gutting our manufacturing base in return for campaign contributions from front companies run by the Chinese Communist party.

[xultar]

7. Cuz we are still importing more than we are exporting right? n/t

[InvisibleBallots]

13. a cheap dollar was supposed to make out exports cheaper

which was supposed to make them more attractive to foreign markets, which was supposed to help the trade deficit.

Yet, the trade deficit is still growing, at a record pace. The weak dollar is not helping.

[ArkDem]

16. That isn't what the BBC says................

http://news.bbc.co.uk/2/hi/business/3397487.stm

[InvisibleBallots]

19. that was a year ago

I could be wrong, the latest stories I've read is that the trade deficit is still growing.

[BleedingHeartPatriot]

26. ArkD. please post current news stories...thanks

MKJ

[BleedingHeartPatriot]

28. Actually, it's EXACTLY what the BBC is saying (ArkD disinfo alert)

Last Updated: Friday, 31 December, 2004, 12:42 GMT

Dollar hovers around record lows

The US dollar hovered close to record lows against the euro on Friday as concern grows about the size of the US budget deficit.
>snip

predict that the dollar will remain weak in 2005 as investors worry about the state of the US economy.

The Bush administration's apparent unwillingness to intervene to support the dollar has caused further concern.

>snip
http://news.bbc.co.uk/2/hi/business/4137415.stm

MKJ

[tsuki]

18. I understand that countries in Europe are boycotting American

products like we buy blue, not official, but hurting us anyway.

[xultar]

23. That is why sinking or LIHOP $ sinking doesn't make any sense. n/t

[Oversea Visitor]

30. No No we are not boycotting Americans

We are boycotting BUSH

[leesa]

27. "front companies run by the Chinese Communist party" Huh?

These are US companies run by US CEOs who have sent our manufacturing over to China to make themselves more and more money. What in hell are you talking about??

[HereSince1628]

6. might work like that but China pegged its monetary value to the $

Consequently we can't get any traction to close up with China's export power. Everything that helps us helps them.

[Union Thug]

10. America still has exports? Wow!

[area51]

33. Exports

Sure we have exports -- our jobs are our exports!

[trotsky]

2. Something to know about the Bush Family Evil Empire.

They are bigtime goldbugs. When the dollar tumbles, gold soars, and the gold lovers post big gains.

A weaker dollar also means that imports cost more, while our exports become cheaper for foreign consumers. In theory, it might help get our incredible trade deficit into a more manageable range. Hasn't worked yet, though.

[bunny planet]

3. Very dangerous experiment they are doing. with us as the guinea pigs

[InvisibleBallots]

5. really?

I didn't know about any gold connection. Remember the lawsuits against the Fed for "manipulation the gold market"? http://www.gata.org

[trotsky]

8. Google George Bush and Barrick Gold sometime for fun.

The most notable outrage was when Poppy Bush, in one of his last acts in office, let Barrick snap up about $10 billion in land for pennies on the dollar. In return, when he got voted out, Barrick put them on their Board.

[Deja Q]

9. Pity everything we make is in China, India, et al...

[xultar]

24. You can blame WALMART for that n/t

[youngred]

11. it's not what we want at all

it's very bad for the US and world economy if the US dollar keeps sinking or goes bust (the world currency markets are tied to the US dollar and we are the strongest economic power). I would think it would be more of problem to the business elites than they seem to be worrying about. I think most of them are blinded by the money they are making hand over fist to care about the fact that soon that money won't buy them shit

[xultar]

12. That is what I was thinking, but I can't figure out why * is so blind...

remember the wall st conference call a month or so back where the big financial analyst dude said that the economy was on a track to disaster...or something of that sort.
It made the news because A. the content of the call is usually not made public because it is usually just between wall st elite types and B. because the guys outlook was so drastically negative and that isn't what the analyst on the street are telling the media.

* made a snide remark to a reporter who asked about the dollar. * told the guy that well int'l business should invest in American companies since the dollar is so cheap. *'s statement was stupid based on your comments because who wants to invest in a company tied to a currency that is sinking the world's economy.

[youngred]

15. it doesn't matter to * because he doesn't know better

and because he likes the power that goes along with all this. He isn't about the money as much as the power and the hefty kickbacks. The power will insulate him/them from some of the dangers fo a dollar collapse.

Bush has shown that he has NO economic sense whatsoever because he has NEVER been a successful businessman. The ONLY successful business venture he was ever in was the Texas Rangers, and that only worked because he ripped off the local government by holding the team ransom (sound familiar?). For all his talk of smaller govenrment and non-intereference, the only business model he has been able to work is to get huge kickbacks from the government to float it.

[4_TN_TITANS]

14. It's a shame...

that I have to put my money into foreign investments to make a buck, but I finished last year with 17% interest on my 401k and this year looks good too. We can soak the Chinese from our end too.....

[laura888]

32. where are you investing? n/t

[SammyWinstonJack]

34. .

:eyes:

[Shadowen]

17. It'll help Hollywood.

The relatively stable CDN$, which is pretty much holding steady as the US$ drops, results in a much worse exchange rate for American companies using Canada for cheaper production than even six months ago.

Just for illustration, in 2003, I believe the CDN$ was worth about 65 cents US. Roundabout now, well, last time I heard (about a week about), it's 80 cents US.

[mtnsnake]

20. It pissed me off to no end that Kerry rarely if ever brought this issue up

about the sinking American dollar...and man did it sink during the last two years of the chimp's first term.

That was just one more example of Kerry's pathetic campaign.

[xultar]

22. I wondered why this was never brought up too. Chimpy needed to

explain to the American people why he was allowing this to happen under his watch.

Kerry didn't call Chimp on it, you are right. That is a shame. Unless Kerry would have done the same thing Chimpy is doing.

[Razorback_Democrat]

21. It doesn't matter to * because he believes he is bringing on the end times

n/t

[Name removed]

25. Deleted message

Message removed by moderator. Click here to review the message board rules.

[ShaneGR]

29. If you buy foreign goods or like to travel..... of course not... BUT

If you manufacture exports, probably.

[sweetheart]

31. Its the loss of reserve currency status that is most disconcerting

One of the features of a "reserve currency" is that it holds its value
over time, and as this devaluation progresses, that maxim will no longer
be true, and the masssssssssive reserves will start to be liquidated.

This will negatively effect US business, as reserve currency status is
not re-established overnight.

Bottom line, bush defaults on his obligations, and this is a thinly
veiled attempt to default on all foreign obligations held in dollars,
as with the devaluation, the people who will take it in the shorts,
besides americans, are the huge foreign interests holding dollar
reserves as part of the post-ww2 consensus of a global order based
on US hegemony.

That america is not good for its debts, does not go down well with
creditors, and credit and goodwill in business will not be re-established
as long as the people who forced the default stay in power... very
similar to how american express will not give a new credit card to
someone who has previously defaulted.

So I guess to answer your question, it depends on who "we" is. If "we"
are the global forces of progressive harmony the world over, the
dollar collapse is a healthy non-violent way to destroy the power that
keeps the american empire straddling the globe. The result is a
true shift toward multipolarism, and a dismantling of the empire.

If "we" are just american workers and taxpayers, then "hell no".
Default is unpleasant, and will permanently destroy the street-cred
of all american business and enterprise.

Bush is so ignorant of international financial markets, and his
administration as well, between them holding the knowledge of a
junior high school student in dealing with such matters.... they
think that default will get them off the hook for their obligations..
just like they've scammed their way off any hook of respnsibility
for their own behavior since they became a political force.

And as he steers the american economy towards a smashup, the warning
voices of the wise sing louder and louder, until he makes some banal
statements about "strong dollar" on his way to his drunken economic
driving collision.... Never let a drunk drive an economy, or a car...

[Wiley50]

35. My Theory is that our elites have been taking

the huge profits that they have scammed and the neocons have given away in huge govt contracts(purposfully to bankrupt the treasury in order to eliminate social programs)...
And invested their windfall in the euro and precious metals. They don't care if the dollar bottoms out cause they have put their fortunes elsewhere already.
It's all part of their globalization plans.

[SarahB]

36. The wealthiest of the wealthy will be fine regardless.

I believe the entire reason for Iraq is to keep oil money in dollars rather than Euros anyway. Any future for the dollar is paved on a road of blood.

[Karenina]

37. It is soooooo NOT

about what YOU want. *dauphin says, "Who CARES what YOU think."