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Dumping of US dollar could trigger 'economic September 11'
The Australian ^ | August 29, 2005

Posted on 08/31/2005 12:38:24 AM PDT by Travis McGee

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To: DB
Our power rests in our ability to create things, freely and defend ourselves. Something much of the world has forgotten how to do.

While I find no argument with our ability to defend ourselves, I do question our government's will to do so, using our open borders as an example.

21 posted on 08/31/2005 4:40:45 AM PDT by varon (Allegiance to the constitution, always. Allegiance to a political party, never.)
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To: varon

how stupid of an article is that !

The dollar depreciating is good for the economy as long as its not too sudden. This is how it works: the dollar looses value implies imports become expensive and exports cheaper. There have been instances of sooo many industries rampin up production in the last 2 years cos the dollar slid against euro smoothly. If the dollar is cheaper then american goods cost less in the world. If you need anymore convincing compare the number of tourists coming down into U.S from europe the last few years from historical averages.

I would say a orderly depreciation in dollar is exactly what we need.

I agree foreign vacations will become expensive for us but who the heck wants to go abroad when we got so many beautiful places worth checking out here in USA !!


22 posted on 08/31/2005 5:02:55 AM PDT by icyicym
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To: Travis McGee
"more evident as the extent of the relative US economic decline becomes evident..."

But we aren't in economic decline. In fact, we just led the entire world out of a recession.

I can't tell from this article whether the writer is proposing that this would just happen, or whether he's proposing that it would be an intentional effort by some foreign nation to nuke the US economy. If he's proposing the latter, then I think that's a pretty dumb idea. First, I don't think it will work. Second, it would probably take down the guy who tried it.

Suppose, for example, that China decided to dump a trillion dollars on the foreign exchange (which is purely fictional since they don't even have that many dollars). Well, that would probably cause the dollar to decline. On the other hand, they would not get much for those dollars, and they'd end up taking a bath, while we and others bought those dollars cheaply. In effect, it would be a transfer of wealth by the Chinese to the rest of the world.

23 posted on 08/31/2005 5:11:27 AM PDT by Brilliant
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To: meadsjn
And furthermore, business owners get tax credits for hiring foreigners here on work visas, but none for hiring Americans.

Where did you get that notion? Vdare, or Stormfront?

24 posted on 08/31/2005 5:11:44 AM PDT by 1rudeboy
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To: Travis McGee

anyone that credits Soros and Buffett as the basis of their premise on the future of the dollar needs to look and the losses they have sustained in the last year. Soros was wrong on elections and the dollar, Buffett was wrong on Insurance and the dollar. He has allowed some very shady stuff to go on at Geico and General Re.


25 posted on 08/31/2005 5:55:47 AM PDT by q_an_a
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To: DB

What do we create anymore that others are willing to buy?


26 posted on 08/31/2005 6:08:17 AM PDT by hubbubhubbub
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To: Willie Green; Wolfie; ex-snook; Jhoffa_; FITZ; arete; FreedomPoster; Red Jones; Pyro7480; ...
This is the belief that markets are self-correcting and best left alone. Soros calls this a dangerous siren song. Far from being self-correcting, he emphasizes, markets tend to excess. They over-shoot. Anyone with any experience of markets knows this.

No, no, no! There is no other god but Free Market, and Adam Smith is his prophet ! Bazaar Akbar!

27 posted on 08/31/2005 7:08:12 AM PDT by A. Pole (" There is no other god but Free Market, and Adam Smith is his prophet ! ")
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To: icyicym
This is how it works: the dollar looses value implies imports become expensive

Including oil. The dollar has lost 30% of its value against the Euro and some other major currencies in recent so it is not surprising that oil producers are demanding more of our less valuable dollars for their oil that is just as good as it ever was.

For years the world has used dollars as the reserve currency and has trusted in the faith and good credit of our government. I think we may be moving into a period where that faith wanes and where oil replaces gold as the underlying commodity that gives currency value.

In the meantime, if oil gets too expensive, it is going to choke off that recovery in our manufacturing sector that was driven by the cheap dollar.

28 posted on 08/31/2005 7:21:04 AM PDT by jackbenimble (Import the third world, become the third world)
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To: A. Pole
Thanks for the ping along.

Crashing dollar? No problem. The GOPbots will cite that as a benefit of free-trade and the evolutionists will cheer that as proof Darwin was right about survival. The war party will say we got to atom bomb the arabs before they take over the world. The President who is hit with this hurricane will find a lot of places under water.

Aren't we glad that China was made a permanent favored trading partner and we can swap jobs, factories and U.S. securities for cheap consumer goods. Beam me up.

29 posted on 08/31/2005 7:23:16 AM PDT by ex-snook (Protectionism is Patriotism in both war and trade.)
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To: Travis McGee

bump for later


30 posted on 08/31/2005 7:24:39 AM PDT by GOPJ
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To: KeyWest
The manufacturing base in the US has been fairly constant over the years.

I take it that you work in marketing or the financial field. No one who works in manufacturing or engineering would make such a erroneous comment.

31 posted on 08/31/2005 7:25:15 AM PDT by Last Dakotan
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To: jackbenimble
The dollar has lost 30% of its value against the Euro and some other major currencies in recent

It lost against non-major currencies as well - it lost 30% against Polish zloty.

32 posted on 08/31/2005 7:29:48 AM PDT by A. Pole (" There is no other god but Free Market, and Adam Smith is his prophet ! ")
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To: Travis McGee

Someone will have something to lose if the dollar crashes. Someone will have something to gain. That said, which someone is more powerful says who will win.


33 posted on 08/31/2005 7:33:26 AM PDT by CodeToad
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To: DB

"Our power rests in our ability to create things, freely and defend ourselves. Something much of the world has forgotten how to do."


Unfortunately, so have we to a great extent.


34 posted on 08/31/2005 7:33:58 AM PDT by CodeToad
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To: A. Pole
So lemme get this straight... You're on the same side as MoveOn.org's sugar-daddy George Soros?

Okaaaaaaay.

(On a side note, "Bazaar Akbar" is hysterical.)
35 posted on 08/31/2005 7:53:05 AM PDT by Redcloak (We'll raise up our glasses against evil forces singin' "whiskey for my men and beer for my horses!")
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To: q_an_a
You have a point. Plus those two have been betting against the United States ever since they didn't get thier way in the elections. They're having a snit and want to take their ball home 'cause we won't play by thier rules. What babies.

...anyone that credits Soros and Buffett as the basis of their premise on the future of the dollar needs to look and the losses they have sustained in the last year. Soros was wrong on elections and the dollar, Buffett was wrong on Insurance and the dollar.

36 posted on 08/31/2005 8:24:04 AM PDT by GOPJ
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To: Redcloak
So lemme get this straight... You're on the same side as MoveOn.org's sugar-daddy George Soros?

I am not comfortable about it, by I must respect Mr. Soros expertise on instability of the markets. After all this is how he made his fortune.

37 posted on 08/31/2005 8:25:04 AM PDT by A. Pole (" There is no other god but Free Market, and Adam Smith is his prophet ! Bazaar Akbar! ")
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To: A. Pole

Why the discomfort? He's promoting socialism; just like you.


38 posted on 08/31/2005 9:15:01 AM PDT by Redcloak (We'll raise up our glasses against evil forces singin' "whiskey for my men and beer for my horses!")
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To: A. Pole

You're quoting George Soros - a viciously anti-American currency speculator who funds radical left-wing causes, including organizations with known links to terrorists.
That man does not deserve attention - he deserves jail - at best.


39 posted on 08/31/2005 9:15:42 AM PDT by andy58-in-nh
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To: A. Pole
it lost 30% against Polish zloty.

Not the Polish zloty! NOT THE POLISH ZLOTY!!! NOOOO!

40 posted on 08/31/2005 9:19:13 AM PDT by denydenydeny ("As a Muslim of course I am a terrorist"--Sheikh Omar Brooks, quoted in the London Times 8/7/05)
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