The buck doesn't stop here; it just keeps falling »
Posted by: engineer 2 months agoThe almighty dollar is mighty no more. It has been declining steadily for six years against other major currencies, undercutting its role as the leading international banking currency.
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ProudBlueTexan2 months ago
"In early June, Bush declared before his trip to Europe: "A strong dollar is in our nation's interests."
...belongs in bush's book of quotes. lol
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ProudBlueTexan2 months ago
"The loss of the dollar's purchasing power and international respect has some experts worrying that the euro might one day replace the dollar as the so-called primary reserve currency. And that could trigger a dollar rout as foreign governments and international investors flee from U.S. Treasury bonds and other dollar-denominated investments.....
Since roughly half of the nation's nearly $10 trillion national debt is held by foreigners, mostly in Treasury bills and bonds, such a withdrawal could have enormous consequences."
Why am I reminded of Katrina?
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buckncindykill1 month, 4 weeks ago
Mujahideen Muslim terrorists may be behind the sinking American dollar as part of a campaign to cripple the American economy, the Middle East Media Research Institute (MEMRI) reported. The media watch group, which specializes in tracking Arabic language websites, said that postings on websites the past two years reflect a move toward waging an economic war against the United States. Financial, rather than military, losses that will prompt the U.S. to change its policies in the Middle East and elsewhere.
Mujahideen terrorist groups that operate in Afghanistan, Pakistan and other countries "have come to the conclusion that it is financial, rather than military, losses that will prompt the U.S. to change its policies in the Middle East and elsewhere," according to MEMRI.
Certainly a factor don't you think?
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dunkirk1 month, 4 weeks ago
So did they plant Bush and his economic mismanagement too? Weren't these the guys just this morning you righties were claiming were all but defeated (again) and now they have the economic power to cripple the dollar???? Hmmmmmm ya think it just might be the spend and spend and spend and spend and spend and borrow policy of the Repubs??
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Amazing12 months ago
In early June, Bush said, "A strong dollar is in our nation's interests." So in early June, we can assume that Bush was just as idiotic as ever.
How much lower would our debt be if we had never invaded Iraq?
The dollar is a fiat currency that is based on nothing but hot air. The Fed bails out Bear Sterns and pumps more hot air into the system. The economy is like a balloon. Pump enough hot air into it and the balloon will burst. And like always, it will be WE, the PEOPLE who will suffer from the cavalier attitude of those who are in control.
It's time for a Tea Party!
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jmarks1 month, 4 weeks ago
Some are admitting that the Iraq war was about oil, if thats the case, that investment is running at -12billion a month.
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Teech1 month, 4 weeks ago
"In early June, Bush declared before his trip to Europe: "A strong dollar is in our nation's interests."
Which is exactly why Bush does everything he can do to further WEAKEN the dollar! He does NOTHING that HELPS our nation, every action he has taken for the past seven years has been totally AGAINST our nation's interest.
He has, of course, made billions for himself, big oil, big pharm, and others who gave generously to get him elected. Their return on investment has been ten fold. America on the whole has been the big loser.
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amazed1 month, 4 weeks ago
you know, I'm really, really no fan of Bush's, but this is WAAAYY beyond what any President can do.
Much of the reason that the dollar is falling has nothing to do with Bush and much more to do with our economic realities.
American companies must meet all kinds of financial, environmental and other regulations that most of their counterparts in other countries -- especially China and India -- do not have to deal with. This makes shipping manufacturing and help desk and other functions overseas even more attractive to US based businesses.
Let's look at the responses to this. Most Republicans (at least the more traditionally conservative ones) call for leveling the playing field by relaxing some of the regulatory BS that the US corps must deal with, lowering their costs (tax breaks) and trying to give them back some leverage when dealing with unions.
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bigurn1 month, 4 weeks ago
To my mind this is the single most misunderstood facet of a national economy. Several countries tie their currency to ours. To allow the dollar to weaken is to weaken the world economy, not just ours.
We long ago left the gold standard, and as a result the dollar is worth only what the government is willing to agree that it is worth.
This is bigger than any other issue facing America, and needs to be understood first, discussed second and dealt with last.
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gamahuche1 month, 4 weeks ago
"Several countries tie their currency to ours"
Guatemala used to some 35 years ago when I was last there.
No others come to mind off-hand.
Any significant ones that you can think of?
While obviously a cause for concern, whether this is the BIGGEST issue facing America is in any case open to doubt; I'm sure most people are more concerned about the micro-economic problems that they face, such as the negative equity in their homes and the price of gasoline for driving to work because there is no public transport system that will get them there.
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Will13131 month, 4 weeks ago
A few nations besides the United States use the U.S. dollar as their official currency. Ecuador, El Salvador and East Timor all adopted the currency independently; former members of the US-administered Trust Territory of the Pacific Islands (namely Palau, the Federated States of Micronesia and the Marshall Islands) decided that, despite their independence, they wanted to keep the U.S. dollar as their official currency. Additionally, local currencies of several states such as Bermuda, the Bahamas, Panama and a few other states can be freely exchanged at a 1:1 ratio for the U.S. dollar. Finally, a number of nations have tied their currencies to the U.S. dollar - including Argentina (1:1 fixed exchange rate from 1991 until 2002), Lebanon (one dollar = 1500 Lebanese pound), Hong Kong (one U.S. dollar = HK$ 7.8 since 1983), and several more.
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JohnQPublicComment removed: User banned.
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miklkit1 month, 4 weeks ago
What weakened our dollar more than anything else? Debt! Dumbya has been spending like a drunk sailer, and now that debt is biting us all. Good job bushie!
http://www.brillig.com/debt_clock/faq.html
And it's all for corporate america and Iraqi oil.
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canadianrancher571 month, 4 weeks ago
I was one of those who thought that a lower dollar would really help out your economy but forgot things like the price of oil which is priced in US. dollars. I heard this morning that government spending is up 68 per cent during the last 8 years which to the world shows a complete lack of government responsibility towards financial matters. I don't think that the world has lost faith in the American people or American business but I do feel they are disappointed with your government, and are showing it by dumping your currency. MOst in the world are smart enough to understand how much the average joe and business is struggling and also realize how much of your countries wealth is ending up in to few hands.
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saintetienne1 month, 4 weeks ago
"but I do feel they are disappointed with your government, and are showing it by dumping your currency."
Well then it's going to be their funeral when Americans stop buying their products, travelling to their countries and trade plummets. Because as the United States goes, so goes the rest of the world. If the U.S. goes down in flames, you better believe it's dragging the rest of the Earth with it.
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gamahuche1 month, 4 weeks ago
Well we have plenty of free-spending Russians in place of the US tourists who are feeling the pinch. And the Euro is in danger of becoming the reserve currency of choice.
I thought that your usual fireside chat was about the US being uniquely the only salubrious spot on the planet but now you seem to feel that what happens in the US parallels what happens in the rest of the world..
This IS leaving me a bit puzzled..
But good luck with the dumpster-diving, St E!
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jaxguy1 month, 4 weeks ago
as the dollar continues to fall oil and gas prices will continue to skyroket.
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saintetienne1 month, 4 weeks ago
"The almighty dollar is mighty no more. It has been declining steadily for six years against other major currencies"
This is great news for export businesses and the tourism trade, both of which have seen skyrocketing business over the last year. What's more, manufacturers are beginning to hire back local workers - it's now cheaper than outsourcing.
Every cloud has a silver lining.
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Sabretooth1 month, 4 weeks ago
"This is great news for export businesses and the tourism trade, both of which have seen skyrocketing business over the last year."
Excellent, you can be the new Mexico, i will be sure to drop you a nice tip when i am finished my dinner.
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saintetienne1 month, 4 weeks ago
"Who ever thought that ramming planes into our financial center, exploding them to rubble, blaming it on foreign extremists and borrowing money to start an illegal war and occupation for corporate gain would ruin our economy?"
I don't know.... Perhaps some schlock Hollywood writer? Because what you just described resembles nothing NEAR reality. The plot for yet another bad Will Smith movie, maybe, but in reality? Get a clue, unonothing.
You ARE living in reality, right?.....
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agoodlibertarian1 month, 4 weeks ago
I did, saw it from day one. Tried to inform people, But some people(republicans)have no idea what is going on, like from saintetienne.So the people got fooled. Not the first time it will not be the last. unfortunately some people(republicans)
just never learn.
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emailkyloe1 month, 4 weeks ago
The answer to these problems will never be a solution so long as bush and 'bush like' administrations are apparent.
Though, a holistic way to start would be to liberate and unshackle your fellow "citizens" by opening the floodgates of the media toward a lucid restructure. The constitution may otherwise be just a simplistic sham.
Remember the call to Alamo??
Unsheathe those Bowie's! A tea party looms.
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albionperfides1 month, 4 weeks ago
The Alamo is not a good comparison really. Lt Travis and Bowie disobeyed Sam Houston's orders to destroy the fort at the Alamo and retreat thus extending Santa Anna's supply lines. They paid for this with their lives but could have been part of Houston's victory at San Jacinto later. ref: Sword of San Jacinto by Marshall de Bruhl.
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emailkyloe1 month, 4 weeks ago
Mission impossible for Sam Houston's idea, unfortunately.
Also, what I've conceived about this narrative is that all these fine men, of some rank, made a critical and calculated choice. Given all unfortunate circumstances they officially signed off on their assessments and initiated a request for support. That 'request for support' was only in part answered.
Colonel David Stern Crockett, "King of the Wild Frontier".
He alone brought something like twenty men to service in Alamo. That may have been about it, really.
All Hero's in my book...
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walden31 month, 4 weeks ago
"The gaping U.S. current-account deficit â;; the amount by which the value of goods, services and investments bought in the U.S. from overseas exceeds the amount the U.S. sells abroad â;; and the low levels of domestic savings means that foreigners must purchase more than $3 billion every business day to fund the imbalance."
Scary huh? Especially when you think who the lenders are.
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seolady1 month, 4 weeks ago
This is bad news to foreigners working in the US, for example someone coming from the Philippines. I have a friend from their and is working in NY. She said when dollar decreases it means a decrease in the amount of money she will be sending to her family in the Philippines. Here is some facts: In July of 2006, the exchange rate was US$1 to P53.05 (Philippine peso). This time around, the exchange rate has fallen to P47.00, thats a 11% decrease.
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amazed1 month, 4 weeks ago
well, there you go.
You know, it USED to be illegal to send US money out of the country to people in other countries.
And while you're at it, how 'bout all those "Native American- owned" casinos? Because they are on reservations, they are not "in the US" so, they (at least the ones in CT) ship huge amounts of currency to the Caymans and other tax-haven islands....
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