Posted on 08/08/2007 12:41:14 PM PDT by SirLinksalot
So we can pay $10 a gallon for gasoline and thus end global warming forever?........
Nope. No one will read this . . . too long, and too many big words. (I’m saving it for later myself).
The dollar has declined 30% since 2002.
This is utter rubbish that in no way serves ordinary Americans.
Makes me glad to have a chunk of money in a currency other than USD’s.
Ordinary Americans defined as those who insist on buying imported products and traveling overseas?
I’m not so sure. I sell to the US and demand has dropped significantly, because with the dollar worth less the price (to you) of my products has rocketed. On the other hand, my friend plans to vacation in america next month, at least partly because she can get so many dollars for sterling. That in a nutshell is what this guy is talking about. Weak dollar means you buy less from other nations and they spend more with you. Which is good for the US.
Of course, this is on a macro economic level. I take your point that poor John Doe doesnt get to see much of the benefit of all this.
The decline is relative and expressed in other currencies. I have seen it play out here in Forida where we expect many Canadian snowbirds to winter here. When the Canadian dollar went to sixty cents the Canadians started saying that they couldn’t afford to come and many sold their winter homes. Now the Canadian and American dollars are at parity, and they will be back bringing those tourist dollars we like with them.
The NZ dollar has appreciated 84% since I invested there. Doesn’t even count the investment return itself.
Ordinary Americans whose savings devalue right along with the dollar even as it costs more to live in the USA.
The average American does not have a diversified portfolio of currencies and precious metals. When the dollar is devalued, their life savings are devalued. With increasing costs in any number of sectors, it means the average working American gets the short end of the stick.
You understand that a stronger Euro is a different issue than inflation eroding your savings?
A devalued dollar and the policies behind it that go back to the Federal Reserve Bank, which is a private corporation and not a government agency -- which private corporation has everything to do with the rate of inflation in this country.
This is a bunch of BS as long as the Yuan remains pretty much a fixed ratio currency.
It is if you read the article that started this thread.
A devalued dollar and the policies behind it that go back to the Federal Reserve Bank, which is a private corporation and not a government agency
Maybe you should mention that on an inflation thread?
If the Fed is a private corporation, who owns it?
It's a private corporation. Won't you be surprised if you dig into who owns it...
Right now is the time to cut the budget and start using the surpluses to retire bonds, offsetting the potential rise in rates due to a lower currency.
I was hoping you'd enlighten me. But seeing your confusion about exchange rates and inflation, I wasn't counting on it.
God bless.
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