Posted on 03/10/2015 9:07:39 AM PDT by Olog-hai
Hmm, dollar is doing pretty damned good for a currency on the wane.
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Based on exactly what? None of those entities has any public debt even approaching ours. Not to mention that the leading EU nation has been repatriating and buying gold at quite an accelerated pace. Yellen has her hands full trying to juggle the Fed’s interest rate.
Always count on those aforementioned entities’ hatred of the USA as a factor as well. Never mind who they are all friends with, to a degree (Iran in particular).
I do have to say I’m astounded at the amazing faith in Obama here.
Are the recent raisings of the debt ceiling factored into that?
And that will never happen to the USA, yes?
I know, but the idiots in charge don’t understand unintended consequences.
Is that adjusted for inflation?
The $DXY or US Dollar Index is the value of the US Dollar compared to a basket of currencies.
Currently, this index is calculated by factoring in the exchange rates of six major world currencies: the euro, Japanese yen, Canadian dollar, British pound, Swedish krona and Swiss franc. This index started in 1973 with a base of 100 and is relative to this base. This means that a value of 120 would suggest that the U.S. dollar experienced a 20% increase in value over the time period.
If you notice China is NOT part of that basket. Would you like to venture a guess as to why?
As far as “Inflation Adjusted” you need to look at what’s called the “Purchasing Power Parity” of the US Dollar. When you look at that chart you will see that our Purchasing power has been declining seen the FED was created in 1913. The only real increase occurred when the market crashed in 1929.
Are the recent raisings of the debt ceiling factored into that?
Technically, Yes.
The prices of each component is determined by traders around the world who take their cues from monetary policy that is set by their respective central banks.
I understand where you are coming from, but this isn’t fait in Obama. It’s faith in a dollar he has done his best to destroy and wasn’t able to.
The question I have always asked, is where do you go to do better than the U. S. Dollar? The answer is, there isn’t anywhere else to go.
Russia’s currency? LOL
China’s, always subject to Communist Party whims? LOL
The Euro? LOL, it’s not doing so hot.
If we get a decent guy in in 2016, we could turn things around and start paying down our debt rather rapidly.
If we went after welfare and put an end to most of it, we could have that debt down at least 5 trillion lower in the two terms.
If we put our people back to work, something Obama and company refuse to do, imagine the increased receipts at the federal government level.
We’re talking massive increases in funds.
I don’t have any faith in Obama, we except to continue to screw up.
Keep a closer look at the whole euro thing; it was designed to fail so that something else would either replace it or it gets fundamentally changed into something else.
To be sure, Obama is not playing things to the advantage of the dollar. Not to mention that the militaries of Russia and China are still growing while the USA’s military is not; and although the EU’s attempts at a unified military continue to be false starts, the potential for a ridiculously powerful one is still there if they suddenly unite them.
PS. Faith in the dollar itself is futile. It is not a divine currency; making it into one is Mammonizing it. Only God can protect the dollar.
The whole Euro thing could just as easily fall apart as anything. The system is on very shaky ground.
I don’t see Europe being a stable system ever, and that is Biblical as well. The old Babalonian era vision of Daniel regarding the Man made of gold, silver, iron, and feet of clay and iron, depicts an Europe that will never cling to itself for an extended period of time.
As for Russia and China scaling up while we aren’t, I’d say it goes farther than that. We are scaling back rapidly, and folks don’t realize how drastically it has been done.
I don’t believe the dollar is ordained. It’s just that there’s nothing out there right now to challenge it.
If we got a good person in 2016, things will get better. If not we could drift further.
There will always be “ifs” one way or the other. Right now they are as much in our favor as not.
The dollar is doing well, and will continue to for the near future. That’s may take on it, always a sure fire way to curse the dollar to be sure. LOL
The Fed and other central banks in developed countries are likely to keep interest rates low in order to ease the financing costs of their public debt, an approach often referred to as financial repression. At least for the near future, our capacity to carry our debt load and our prospects for economic growth matter more than the aggregate size of that debt. Thus the US still has time to make needed reforms.
As for Iran, our resurgent domestic oil and gas production provides the US with greater freedom of action than we have had in decades. In the coming years, China -- yes, China -- seems likely to find itself dependent on Mideast oil to an embarrassing degree. Alternatively, new nuclear energy technologies could redirect the world away from dependence on fossil fuels and to burden the Mideast with having to earn a living.
I’m sure such optimistic musings were in the air prior to World War II breaking out. Who is on the scene in the USA right now with the power to institute reforms before disaster hits? Certainly is not Obama, and he’s got too many people in both parties helping him on his mad course to oblivion.
For me, Scott Walker and Ted Cruz are at the top of the list as possible Presidents to get the US back on track.
Just remember Jeremiah 17:5. It may certainly be that Walker and Cruz have character that is superior to FDR, but they are up against a machine that wasn’t around in FDR’s day (but which FDR did promote heavily); and we do not presently have a British ally as strong as it was in those days nor leadership there of the caliber of Churchill. Even worse, the private morality of the populace is heavily degraded. And even with the ravages that the Federal Reserve was starting to wreak, the dollar was worth far more then than today, as was the pound sterling.
We do well to recall in this context that hope and fortitude are virtues and that despair is sinful. In the dark days of Cold War defeats, who could have imagined that America would elect someone — a former actor at that — who would reinvigorate the country and our allies and shove the USSR into its grave? Yet so it was, and our difficulties and dangers are not as severe now as they were then. Free peoples are capable of not just folly but also of great accomplishments. We may fail against the challenges that we face, but were are not destined to fail. Our fate is in our hands.
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