US Dollar plunge could lead to full-blown financial crisis

The Straits Times ^ | 01.17.04 | William Choong

[Praxeologue]

The rest of the world will not chip in to help pay for the $5 billion space initiative, to recover the $1.5 Billion for the promotion of marriage, or pay for the unfunded prescription drug plans in the Medicare program, the TSA's crazy costs, the agriculture Bill, the Dept. of Homeland Security stumbling, the steel tariffs, they aren't going to help promote the proposal to cut U.S. manufacturers taxes nor the horrendously costly "temporary worker" idea.

... or for faith-based initiatives, expeditions to the Moon, Iraq costs and many other things. It would be imperial overreach were it not for Bush's moral strength and spine of steel as Zell Miller said. If anything can save us, that will. Bush can't help if he doesn't get reelected, though ... so the spending continues.

[arete]

The rest of the world will not chip in to help pay for the $5 billion space initiative, to recover the $1.5 Billion for the promotion of marriage, or pay for the unfunded prescription drug plans in the Medicare program, the TSA's crazy costs, the agriculture Bill, the Dept. of Homeland Security stumbling, the steel tariffs, they aren't going to help promote the proposal to cut U.S. manufacturers taxes nor the horrendously costly "temporary worker" idea.

Wait, it could get better. There are rumors floating around that the government will now actively become involved to providing new homes to those who can't afford them. This is a wonderful idea especially now that we are about to make citizens out of 10-20 million illegals who could all become new first time homeowners at taxpayer expense. I'll tell you, that GW is some kinda conservative. Socialism at it best.

Richard W.

[Jaysun]

Last question for today. Where can I find a chart that shows intraday USD and is open when forex is open, meaning not closed after 8-5 nor on weekends. I went to oando but they don't have charts or could I have missed them while crawling all over their site. The link to the actual platform is here:

http://fxgame.oanda.com/

Just sign up for the game and you'll be on your way. Once you're signed in (make sure you don't have a POP-UP BLOCKER on when you sign in) you'll be on the trading platform. The "game" and the real thing are the same and they are both in real time with the true market. On the platform there's the intraday charts, the various currency pairs, and several indicators that you can make to your liking. It's very easy to use. They start you out with $100,000 play money, and there is no limit as to how long you can use the game. I still use my game platform to experiment.

[dennisw]

Higher oil prices and higher gold prices are the first impacts of a weakened US dollar. Our economy can be pulled down by gasoline permanently at $2.25/gallon which is one projection I hear.

So far the price of imports have not risen because the Chinese Rembi is tied (mated) to the US dollar. But they will.

[B4Ranch]

This isn't a rumor! $200 million was assigned for downpayment assistance. Two weeks ago I was reading where it was already working in Atlana, Ga.

[arete]

This isn't a rumor! $200 million was assigned for downpayment assistance. Two weeks ago I was reading where it was already working in Atlana, Ga.

Let's see if Bush has nerve enough to launch another big government socialist spending program as part of his state of the union speech on Tue.

Richard W.

[B4Ranch]

I think the housing thing is part of the DREAM Bill.

What else can he offer after what he's already done. Free diapers to all new babies?

[Paul Ross]

Mr Paul Krugman, a prominent economist who foresaw the 1997 Asian financial crisis, drew the conclusion as early as last October. In a New York Times column, he said the US economy was approaching a 'Wile E. Coyote' moment - when the coyote in the famous Road Runner cartoon runs off a cliff, only to realise at the last minute - too late - that it is about to plunge to the bottom.

Wile E. Coyote - GENIUS

[Paul Ross]

Both said "no" to his proposal that they just let the market determine the currency values.

More or less an open declaration of Economic War. All else is just mumbling for the benefit of the CATO clowns...who strangely enough, see no 'Government Intervention' in these foreign state's refusals to let 'the market' decide...

[Paul Ross]

Congratulations!!! Twinks will keep you twice as busy.

[B4Ranch]

"Bush can't help if he doesn't get reelected, though ... so the spending continues."

He's the one promoting this foolish spending. He looks more and more like Carter everyday!

[Paul Ross]

OOPS. Almost forgot to include the obligatory sound clip for Wile E. Coyote!

[meadsjn]

Thanks for the ping. This train has been runaway for years and the Boomers and post-GI Silents have been dismantling the bridge to the 21st century for the last couple of decades. Avoiding a crash will be most unlikely.

There is hope. In 2000, the Boomers and older silents had a combined total of 122,627,672 eligible voters. Their numbers will only get less as they die off.

In 2000, the Gen-X and Gen-Y population had a combined total of 71,551,276 eligible voters.

In 2004, the Gen-X and Gen-Y population will have a combined total of 87,643,964 eligible voters.

In 2008, the Gen-X and Gen-Y population will have a combined total of 104,119,805 eligible voters. This will probably be the pivot point where the Boomer elite will lose influence over public policy, forever.

In 2012, the Gen-X and Gen-y population will have a combined total of 120,704,207 eligible voters, and will be very unlikely to share any power with the older generations that totally shredded the economy and the culture, and sacrificed the sovereignty of the US for political points and campaign cash.

Younger voters today are more conservative and nationalistic than any generation we have known since WW-II, and they will get more so as the crisis deepens. The oldest Gen-Xers have been in the workforce since 1982 or 1983. The oldest Gen-Y citizens started entering the workforce in 2002 or 2003. What these younger people have seen is that the policies of business and government has been anti-merit, anti-American, counter-productive, overly complex and under-effective, and they have watched as the fabric of our culture and economy has been unraveled. They have watched as the boomers wasted millions after millions on technology projects that failed because complexity and process were favored over success.

When the crisis settles in solidly, with little room left to debate that it really is a crisis, we can expect these two younger generations to strongly exert their growing influence to pull the nation out of the hole. It will be a repeat of the two Generations that pulled the nation through the Great Depression and World War II.

It will be interesting times.

[meadsjn]

One more consideration: Of the 14,344,217 remaining WW-II Hero generation that can still make it to the polls, they will overwelmingly vote with the younger generations that are replaying their roles from the high point of their lives.

[pepsionice]

Whether by accident or caused by the Bush administration...the change in the currency rate is having an effect on the US consumer. US products are cheaper than European products, and we are becoming cheaper against Asian products each and every day. US consumers tend to shop around...and find the best deals. I see no crisis for the US side of the house, we will continue to carry our own economy. Its the Asian house, and the European house...that need to worry. They count on US purchases, and if they don't occur...they have problems. Their consumers also shop around....and if they find American cars or products cheaper...they will buy them. They are the ones in the worst position. Any crisis that occurs...is a non-US crisis.

[qam1]

Check out the statistics in post #114 & #115

Xer Ping

Ping list for the discussion of the politics and social aspects that directly effects Generation-X (Those born from 1965-1982) including all the spending previous generations (i.e. The Baby Boomers) are doing that Gen-X and Y will end up paying for.

Freep mail me to be added or dropped. See my home page for details.  

[qam1]

Thanks for the ping and excellent summary.

Though the only thing is older people tend to vote more and this will probably be true of the baby boomers and since many of them haven't saved they will be demanding more and more to keep their life style so I don't think the baby boomers will start to lose power until Gen-X and more specifically Gen-Y ages a little more.

[Axenolith]

So they can buy which American made consumer products?

Also, I'm not to enamored of a bunch of Sh*tsack Feds and Bankers deciding that I or other Americans should arbitrarily lose 25% of our purchasing power over X amount of time. It might be a little more appealing if, when TSHTF, the average sheeple were sure to go burn politicians at the stake rather than their neighbors who had a little more foresight...

[meadsjn]

There are several more considerations to the Gen-X and Gen-Y voting bloc, some of which will be offset by anomalies in the older voting blocs.

Younger voters tend to sit out elections until events and peers energize them. These sit outs will be offset by older conservatives who feel dispossessed by both major parties, and a few liberals who can no longer look themselves in the mirror.

A few renegade younger voters will not rebel against their socialist indoctrination or will continue to take their Ritalin, and they will be unreliable or dysfunctional. Their peers will ostracize them or encourage them to vote along the lines of national survival.

When significant numbers of the younger voters become energized, their participation will increase at a record rate. They will more effectively use available technology to activate and persuade their age groups than any previous voting generations. Jesse Ventura's election was the first example of this scenario; future examples will be much more impressive, provided that the Internet continues to work.

As the crisis deepens, and the younger voters get more active in politics and society, their message and determination will convince many of the older voters to relinquish their grip. The liberal Boomers will hang on the tightest because (1) they are inherently the most selfish, and (2) fewer of them have offspring (surviving) whose future they might care about.

It is my belief and hope that liberals will enjoy a crushing defeat in 2004, such that they never raise their voices again. In such a case, the Republicans in 2008 could be facing off against a new party of young conservatives backed by all the Boomer conservatives that the Republicans abandoned.

[xrp]

This is a dangerous trend. If it accelerates, it could spell disaster for the country, and the election of a Democrat majority.

It might not be a bad idea to get one branch of the government back in the hands of the 'rats to get gridlock back in Washington. Look at how much spending has skyrocketed under a Republican President, a Republican Senate and a Republican House of Representatives.