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Curtains for the Dollar in Argentina/Brazil Trade
news.xinhuanet.com — "Argentina and Brazil are to scrap bilateral commercial transactions in U.S. dollars and start using their own currencies from August, an official in charge of currency settlement at the Argentine Central Bank." The free ride for the US is soon to be over. Americans will have to get its fiscal policy in order soon, or they will suffer greatly.
VikingoTJ- 807 diggs
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- VikingoTJ, on 03/26/2008, -11/+67A bunch of stories like this have been coming out lately. This smells like doom for the dollar.
- DreKor, on 03/26/2008, -5/+15Yeah, with sources like Xinhua, of course it looks bad. I'm not saying that the US economy isn't in trouble, but citing Chinese state-operated media is kind of sketchy.
- pgoetz, on 03/26/2008, -2/+13Keep in mind that the Chinese would vastly prefer a strong dollar ( a - they've got a lot of 'em; b - they can continue to export a lot of stuff to the US cheaply) so they have no interest in creating spin which further weakens the dollar.
- texpundit, on 03/26/2008, -5/+4"...so they have no interest in creating spin which further weakens the dollar."
Unless they're working to change the direction of their economy, making partners elsewhere and are willing to take a temporary economic downturn in order to absolutely destroy us economically...which I honestly wouldn't put past the Chinese. - Hangly, on 03/26/2008, -0/+2The Chinese are not a bunch of cackling crazed supervillains, ok.
- texpundit, on 03/26/2008, -5/+4"...so they have no interest in creating spin which further weakens the dollar."
- gernblansted, on 03/26/2008, -0/+7I believe Xinhua's international feed is like Voice of America. In order for these news sources to be effective, they have to be accurate about what they say virtually all the time, otherwise there's no need to waste money on them. Once it's established that they provide fact based news, then the power comes from which facts are left out, which stories are and aren't covered and when.
In this case, the facts are pretty clear. Severe neglect of the dollar is coming back to haunt the US. The US Economy needed urgent care years ago in order to stop the destruction which has only just begun, but instead it's been abused. Any hope that Bush will wake up and do something about it is belied by the fact that he just gave a speech indicating that the US economy is solid, and he continues to fight his war with debt. Don't look to congress, because their plan is clearly make no waves, do nothing.
Fiddle, anyone? - Hangly, on 03/26/2008, -0/+1What's wrong with Xinhua? They're one of the most conservative news organizations I know. I expect them to under-report things, sure, but not make ***** up.
- pgoetz, on 03/26/2008, -2/+13Keep in mind that the Chinese would vastly prefer a strong dollar ( a - they've got a lot of 'em; b - they can continue to export a lot of stuff to the US cheaply) so they have no interest in creating spin which further weakens the dollar.
- airburst, on 03/26/2008, -14/+3What does it say about these other countries when they are not even using their OWN money?
- gernblansted, on 03/26/2008, -1/+9It means they were using a stronger currency, like the dollar.
What does it say about the dollar when other countries stop using the dollar in favor of their own weak money?- BESTenemy, on 03/26/2008, -0/+2Any rising currency is a good investment. The beauty of it is that once you take on, let's say, a trillion dollar foreign currency reserve, you'll instantly increase the demand for it by reducing the amount in circlation. You'll focus other investors the currency of your choice and generate additional rise in value. You'll be sitting on 1 trillion greens that all of the sudden would buy you more than a trillion worth of product. Now, if the value of the reserve had all of the sudden leveled off or started to decline due to inability of the issuer to maintain growth, then your own devalued currency would all of the sudden become a good invesment based on the exact same exchange mechanism. As long as you are a producing and exporting nation, you can hardly loose out.
Those that get into trouble playing currency games are ones that rely on paper money demand entirely for sustaining wealth. United States are one of such nations. Its currency is its credit card. The demand is the backing - the rate of economic activity, the rate of exchange, as oppose to the rate of produciton.
Foreign nations had lended us enough wealth in exchange for our dollars. Now it is time we return the favor... with interest.
- BESTenemy, on 03/26/2008, -0/+2Any rising currency is a good investment. The beauty of it is that once you take on, let's say, a trillion dollar foreign currency reserve, you'll instantly increase the demand for it by reducing the amount in circlation. You'll focus other investors the currency of your choice and generate additional rise in value. You'll be sitting on 1 trillion greens that all of the sudden would buy you more than a trillion worth of product. Now, if the value of the reserve had all of the sudden leveled off or started to decline due to inability of the issuer to maintain growth, then your own devalued currency would all of the sudden become a good invesment based on the exact same exchange mechanism. As long as you are a producing and exporting nation, you can hardly loose out.
- BESTenemy, on 03/26/2008, -1/+3Learn the concept of Petrodollar. Any country that imports oil has to have dollar reserves. The only way to acquire it is to conduct international trade that traces to the US - the only source of those dollars. What it boils down to is that anyone that wants to use the precious fuel has to produce something that will be of value to the US or to another nation with USD reserves.
Everyone knows that foreign nations carry a tremendous amount of debt. Nobody asks why it is possible to have debt in first place and what the collateral is. The debt is not US knocking on foreign nation's door to ask for money. It's a foreign nation asking US or any USD bearing nation to accept goods in exchange for dollars that would buy oil. It's a strategic reserve the country has to have that would cover its energy demands.
This bit of news is probably one of the biggest turning events for the dollar. What the article means is that the day the switch occurs some 26+ billion dollars will start flocking back to US banks.
Imagine us writing cheques to someone, but not having that person cash them for 30+ years and all of the sudden go to the bank. It's runaway inflation, ladies and gentlemen. One event in a series of many more to come.
The public beating of Iraq had failed to install fear in those that it was supposed to affect. If we didn't go to Iraq , they would've switched when they initially planed - in April 2002. The reason they delayed, as did Iran, Venezuela, Korea, China, Japan and others, is that they wanted to make sure US would not be able to come after then the same way we did after Saddam had traded his petrodollars for Euros through "Food for oil" shadow program.- sgiffy, on 03/26/2008, -1/+2Dollars are not a pair of shoes from Nordstroms. You can't just return them at will for your money back. You have to buy ***** with them or exchange them into other currencies. Its not like a check at all.
As for the whole petrodollar nonsense, lots of oil is available in other currencies. Regardless, all one has to do to buy oil in dollars is exchange currency. The reason countries like to get reserves and may base their currency on dollars is because its historically been a very stable currency.- BESTenemy, on 03/26/2008, -0/+1The dollar has been a good investment currency following 2 events in history. First was the WW2 that happened to leave many of European nations in ruines, but not the US. We were smart to help the allies in exchange for gold that gave us better currency backing in 1950-1970, however faced with an eventual economic slowdown we were forced to borrow back from Europe and that time around they were smart, demanding gold, hoping to restore what they had lost during the reconstruction years. France had forced us into default when Nixon refused to honor our debts, either due to physical lack of gold or reluctance to weaken the currency further. The attempts of leveraging USD artificially at $35 an ounce had failed due to FED's inability to leverage the market efficiently.
The second event that had once again restored the faith in the US dollar came as a result of active US participation in OPEC 1971-1973 when Nixon's administration had simultaneously arranged weapons deals with Saudi royal family. The condition was that the US dollar would become the trade token for oil that they produced. When the deal went through in 1973 that had given the US dollar a new backing based on energy instead of precious metal that all ofhter fiats had been constrained to. It had allowed us to go off the gold standard all together while still maintaining "good as gold" motto for the dollar.
Abandoning gold had had a strong effect on the currency markets. Large amounts of it had become available, devaluing every gold-constrained currency against ours that now was only limited by the amount of fractional reserve credit. The dollar had become a popular investment on an assumption that US would provide 3 things: 1. Growing USD market, 2. Growing production of oil priced in dollars though its OPEC allies 3. Control over the resource.
We ran into trouble when pillars that supported the system had started collapsing. We loose control of the oil and along with it we loose both, the faith in the dollar and the dollar itself.
....
Back to your argument. You are correct saying that you cannot just return the dollar. The countries in a dollar trading alliance know perfectly well that any major dump would set panic, causing the dollars to devalue faster. Those left behind would be stuck with it permanently. The dollar cannot be given back. It has to be traded for other currencies. Up until the recent years we've had the leverage. We were able to set exchange conditions for anyone that wanted to get oil through us. If a nation finds a way to buy oil in other currency, then it is able to set leverage though commodities that it produces for our imports. We are a consumer society. We consume more than we produce. If it wasn't for oil, there'd need others more than they would've needed us. That means they would set the exchange terms and determine the currencies involved in the trade process.
What the article means is that next time we choose to participate in any kind of trade with the coutnries mentioned, instead of taking our dollars, they'll be more likely to ask either for their own paper, or something that holds value backed by something other than faith (gold for instance). They will still buy things from US directly (that is if we happen to produce what they need), and they'll pay for it with dollars that we cannot refuse. The simply will not be accepting those dollars back.
The dollar has not been a stable currency. It's been an investment currency for 2 reasons and only during 2 periods in time that I mentioned. As for oil being traded in other currencies, regardless, it is still priced in USD, which means the dollar is always an intermediate and if you choose to supply your own money, you'll be losing out on the exchange rate.
- BESTenemy, on 03/26/2008, -0/+1The dollar has been a good investment currency following 2 events in history. First was the WW2 that happened to leave many of European nations in ruines, but not the US. We were smart to help the allies in exchange for gold that gave us better currency backing in 1950-1970, however faced with an eventual economic slowdown we were forced to borrow back from Europe and that time around they were smart, demanding gold, hoping to restore what they had lost during the reconstruction years. France had forced us into default when Nixon refused to honor our debts, either due to physical lack of gold or reluctance to weaken the currency further. The attempts of leveraging USD artificially at $35 an ounce had failed due to FED's inability to leverage the market efficiently.
- sgiffy, on 03/26/2008, -1/+2Dollars are not a pair of shoes from Nordstroms. You can't just return them at will for your money back. You have to buy ***** with them or exchange them into other currencies. Its not like a check at all.
- gernblansted, on 03/26/2008, -1/+9It means they were using a stronger currency, like the dollar.
- homerj1965, on 03/26/2008, -5/+5Looks like the Amero will have to save the day, then bad things will happen.
- RandomStyle, on 03/26/2008, -0/+2Not quite. First bad things will happen, then the Amero will 'save the day'.
They can change my Canadian dollars into Ameros, but they'll never change my Canadian identity into an American one, no matter what the politicians try to do. - cyberdork, on 03/26/2008, -0/+2Why would Canada and Mexico ever want to join the Amero while the falling dollar shows them how poorly the US is managing it's finances? It wouldn't make sense.
- RandomStyle, on 03/27/2008, -0/+2You know what really sucks? The Canadian dollar is being artificially kept at parity by the powers that be in preparation for the Amero. The majority of Canadians (I hope) want nothing to do with continental economic integration.
- homerj1965, on 03/27/2008, -0/+1If I were Canadian i wouldn't want anything to do with the NAU or the Amero but the powers that be have already made that choice. I don't think the majority of Americans or Mexicans are in favor of continental economic integration either but as the lemmings we have all become we will follow our "leaders" wherever they take us. If Americans can keep GW and DC in power for 7 years they will let anybody do anything unless somebody actually stands up and challenges these people. Us Americans can be such lazy idiots but we have also done some great things. Who knows we may again someday, doubtful but it could happen.
- RandomStyle, on 03/26/2008, -0/+2Not quite. First bad things will happen, then the Amero will 'save the day'.
- jejeje666, on 03/26/2008, -1/+2Ummm... this happened last year. Here's the article from Clarin, the most popular printed newspaper in Argentina. http://www.clarin.com/diario/2006/09/02/elpais/p-0 ...
- DreKor, on 03/26/2008, -5/+15Yeah, with sources like Xinhua, of course it looks bad. I'm not saying that the US economy isn't in trouble, but citing Chinese state-operated media is kind of sketchy.
- americangoy, on 03/26/2008, -11/+56Yup,dollar is done and dusted.
Lets see what desperate deals are struck by the US govt. to keep oil traded in the dollar.
Because once oil starts to trade in euros, the dollar will start a nose dive into monopoly money...- elipabst, on 03/26/2008, -14/+7That's what you guys said about the Iranian oil bourse. It was supposed to be the apocalypse for the US economy and in reality its been open for over a month and hasn't meant crap. The dollar will not nosedive. We have the largest economy in the world and plenty of people around the world are lining up to buy coke, jeans, tractors and airplanes from the US. So please cut the sky-is-falling crap.
- kazamx, on 03/26/2008, -1/+15I think what people were really saying was as more people move away from the Dollar, the Dollar will continue its rapid fall. If you take a look, that has pretty much been true.
No there wont be a single event that destroys the Dollar, but all these little cuts will cause it massive problems.- texpundit, on 03/26/2008, -0/+11Don't forget the goddamned FED constantly printing money and rapidly devaluing the dollar even more. Hell, our own central bank is helping kill our currency...and 99% of the public doesn't even realize it.
- cyberdork, on 03/26/2008, -3/+2That's the only way to keep the stock markets from crashing right now.
- cyberdork, on 03/26/2008, -3/+2That's the only way to keep the stock markets from crashing right now.
- sgiffy, on 03/26/2008, -4/+0Almost all of the recent Fed loans have been counterbalanced by sales of securities, thus removing an equal amount of money from the system.
- elipabst, on 03/26/2008, -0/+3In what way? Frankly, I think I the bigger danger to the dollar is the Fed printing money hand-over-fist and dropping interest rates on treasury securities rather than who is using it to buy oil. People keep talking about how countries switching currencies will destroy the dollar, but we've been much more effective at destroying it on our own. Events like this don't even show up as a blip on a chart of currency exchange rates.
- texpundit, on 03/26/2008, -0/+11Don't forget the goddamned FED constantly printing money and rapidly devaluing the dollar even more. Hell, our own central bank is helping kill our currency...and 99% of the public doesn't even realize it.
- pgoetz, on 03/26/2008, -3/+9Hey, great idea: let's run an entire economy on selling diet coke to the masses.
- Hangly, on 03/26/2008, -0/+1I'll do your laundry and you do mine. We'll both be ***** millionaires.
- scorchedearth, on 03/26/2008, -2/+14Unfortunately, the US economy is no longer the largest in the world according to a Reuters report.
http://www.reuters.com/article/idUSL14919719200803 ...- Barbarino, on 03/26/2008, -11/+3The EU is not a unified country. California is still bigger as an economy than most of the EU individual Countries.
- ka2err, on 03/26/2008, -1/+12> The EU is not a unified country.
It's a unified market - that's what's important. - elipabst, on 03/26/2008, -1/+2That's kind of ridiculous to compare the US economy to the EU which is the *sum* of 15 different countries. If you are going to compare it that way, then you should at least be looking at the EU vs NAFTA countries. I think the general message is evident (that the dollar is dropping), but who is using the dollar to buy oil has had nothing to do with that.
- Hangly, on 03/26/2008, -0/+1And the US is is the sum of 50 different states. You get a gold star for geography.
- judgeFire, on 03/26/2008, -0/+1Well, Germany is still the biggest exporter of goods, with China approaching fast. There are a number of interesting products from the US, but many of them (software, tech) could easily move their headquarters to more stable locations.
- elipabst, on 03/26/2008, -0/+1Why would they want to? The dropping dollar is actually better for them. The lower exchange rate makes US goods cheaper to those in other countries. Many US companies that sell goods overseas are experiencing significant growth almost exclusively because of the cheap dollar. Now if you are a US consumer or a foreigner invested in US securities, you're getting reamed.
- Hangly, on 03/26/2008, -0/+1I just blew the biggest hubba bubba bubble gum bubble in the world. I'm ***** invincible.
- kazamx, on 03/26/2008, -1/+15I think what people were really saying was as more people move away from the Dollar, the Dollar will continue its rapid fall. If you take a look, that has pretty much been true.
- consoneo, on 03/26/2008, -2/+7Check the Amero... that's their idea anyhow.
- cirquo, on 03/26/2008, -1/+0Maybe the Amero, but definitely Iran, they also thretened to trade oil on a bourse that is being made up in euros, uh uh, Bush's America will not let that happen, Watch see, oh wait, Iran, is that a war head I see. BOOOOM.
- elipabst, on 03/26/2008, -0/+1They already opened the bourse, the dollar didn't plummet, the US didn't attack Iran, the sky did not fall.
- cirquo, on 03/26/2008, -1/+0Maybe the Amero, but definitely Iran, they also thretened to trade oil on a bourse that is being made up in euros, uh uh, Bush's America will not let that happen, Watch see, oh wait, Iran, is that a war head I see. BOOOOM.
- RedViper1999, on 03/26/2008, -8/+3Half the people on digg are a bunch a pretentious morons who think they know how fiscal policy works. You don't so shut up. I don't know so I don't preach.
- zebraz, on 03/26/2008, -0/+6If you do not know how fiscal policy works how do you know that others don't ?
- borez, on 03/26/2008, -0/+1The change will be analogous to a bank pulling a $58.2 billion free loan to the US government, I can't even begin to imagine the house of cards effect this is going to have for the US?
- sgiffy, on 03/26/2008, -0/+1No, its not like that at all.
- SilentBobSC, on 03/26/2008, -0/+1I'm fairly certain that several countries (including Kuwait) have all stopped pegging to the dollar when it came to oil.... happened ~6mos ago if I remember correctly.
- elipabst, on 03/26/2008, -14/+7That's what you guys said about the Iranian oil bourse. It was supposed to be the apocalypse for the US economy and in reality its been open for over a month and hasn't meant crap. The dollar will not nosedive. We have the largest economy in the world and plenty of people around the world are lining up to buy coke, jeans, tractors and airplanes from the US. So please cut the sky-is-falling crap.
- eltolete, on 03/26/2008, -8/+31Petraeus said Iran attacked the green zone today. Isn't this convenient timing?
Man, those Iranians know when to hit us. It's almost as if it were a double false-flag event.
As they say in Brazil, a festa acabou... the party is over.- dizilbdog, on 03/26/2008, -9/+1You know where Chess came from The Middle East and Persia. They know how to make calculated moves that can mess up one's country..
- saisumimen, on 03/26/2008, -1/+4"You know where Chess came from The Middle East and Persia ..."
(rolls eyes) - FairDinkumMate, on 03/26/2008, -0/+4Persia? You mean IRAN..... & here I was thinking Iran(Persia) was IN The Middle East...
- d3mag0gu3, on 03/26/2008, -0/+4Believe chess came from India.
- leszek, on 03/26/2008, -0/+1http://en.wikipedia.org/wiki/Chess#History
- saisumimen, on 03/26/2008, -1/+4"You know where Chess came from The Middle East and Persia ..."
- slashbot, on 03/26/2008, -9/+2False-flag? Buried for conspiracy theorist whacko crap
- JointVenture, on 03/26/2008, -4/+2Im investing in Aluminum foil.
- azimir, on 03/26/2008, -0/+2You need to make sure it stays grounded, or it actually amplifies a number of frequencies:
http://people.csail.mit.edu/rahimi/helmet/
- azimir, on 03/26/2008, -0/+2You need to make sure it stays grounded, or it actually amplifies a number of frequencies:
- dizilbdog, on 03/26/2008, -9/+1You know where Chess came from The Middle East and Persia. They know how to make calculated moves that can mess up one's country..
- Look4Truth, on 03/26/2008, -10/+37It's just about time that this nation reaps all the crap it's allowed to happen over many years. The lemmings watching the idiot box will soon wake up and realize that what people have trying to warn them about is happening. God have mercy on this nation...we're gonna need a LOT of it.
- painhertz, on 03/26/2008, -3/+1Hope you like living under the freeway.
- synthpop, on 03/26/2008, -0/+15it just means that America will have to trade real things in exchange for other real things. turns out other countries are tired of swapping real goods for mountains of green paper. just one slight problem, the US has dismantled nearly all manufacturing, replacing the "American worker" with the "American consumer", so a bit of a problem there.
- RedViper1999, on 03/26/2008, -6/+4You are an idiot, the US has the largest advanced manufacturing in the world. Not crap like China makes. In the sciences we still lead immensely with biotech, advanced metals, genetics... Just because we don't make crap anymore doesn't mean we have nothing.
- Midtowner, on 03/26/2008, -5/+2Dugg down because you're pro-American! On Digg, you are supposed to hate America and capitalism. I can tell you never got that memo.
Remember, property is theft, freedom is slavery. - BESTenemy, on 03/26/2008, -0/+4This country's only 200 years old, and already we've had 10 major wars!! We average a major war every 20 years in this country, so we're good at it. And it's a good thing we are, 'cause we're not good at anything else anymore, enh? Can't make a decent car, can't make a TV or VCR worth a *****, got no steel industry left, can't educate our young people, can't get healthcare to our old people, but we can bomb the ***** out of your country all right!
- George Carlin
P.S. America's biggest export is democracy. Sadly, the vendor is the military industrial complex.
- Midtowner, on 03/26/2008, -5/+2Dugg down because you're pro-American! On Digg, you are supposed to hate America and capitalism. I can tell you never got that memo.
- LemonHerb, on 03/26/2008, -1/+1Yeah it's not like the USA doesn't produce 70% of the world's food or anything.
- zebraz, on 03/26/2008, -0/+1Unfortunately we eat all of it.
- RedViper1999, on 03/26/2008, -6/+4You are an idiot, the US has the largest advanced manufacturing in the world. Not crap like China makes. In the sciences we still lead immensely with biotech, advanced metals, genetics... Just because we don't make crap anymore doesn't mean we have nothing.
- swordedge, on 03/26/2008, -17/+18Lets move world trade to the Euro
- allahuakbar, on 03/26/2008, -0/+1Can I convert my 401(k) to the Euro?
- VikingoTJ, on 03/26/2008, -8/+25The first person to claim that this is just "Digg-style" doom and gloom gets a chocolate chip cookie. LOL The news is posted in black and white, and it isn't looking good.
- kazamx, on 03/26/2008, -0/+5That would be elipabst , a few posts up.
- topangea, on 03/26/2008, -1/+3Color me shocked. Another "Digg-style" doom and gloom story from VikingoTJ. At least he's realized we see through his propaganda machine and is attempting to preempt us with promises of cookies.
- VikingoTJ, on 03/26/2008, -0/+1I can't help but to digg up your response, but what propaganda machine? Diggers placed this on the front page.
- Hangly, on 03/26/2008, -0/+2The point is not that bad things are happening and we're all ***** doomed, the point is I'm sick and tired of hearing about it.
Now if you don't mind, my head has a date with this pail of sand.
- caponumen, on 03/26/2008, -5/+22Looks like the use of the US monetary system as an international weapon was a serious miscalculation.
- kazamx, on 03/26/2008, -0/+8quick, invade someone
- d3dm, on 03/26/2008, -2/+1Good. Maybe all the nations around the world that receive handouts from this country will say, "no thanks" and go to the EU for the precious euro. I'm not holding my breath on that one.
- gmyerz, on 03/26/2008, -13/+59See.....Ron Paul is was and is still right!
- alittleroy101, on 03/26/2008, -21/+3Ron Paul can suck my left nut.
- painhertz, on 03/26/2008, -12/+3And if he wasn't such a racist, misogynist pig he might have been electable.
- VitriolAndAngst, on 03/26/2008, -22/+4Can you shut up with e "Ron Paul" said comments. Ron Paul said exactly what the progressives have been saying for 6 or more years. Ron Paul said what Ross Perot said, but, you know WAY LATER. He gets points for the obvious -- but the damn Libertarians and Republican economics have brought us to this problem -- they don't get to stick their clever fingers in the air and get pronounced geniuses. Give me a fricken' break.
- zephc, on 03/26/2008, -2/+6You mean Ross Perot and progressives have been saying it since the 1970s, that we will expand out federal government and deficit to out-of-control proportions?
- alittleroy101, on 03/26/2008, -2/+4is was and is?
- kazamx, on 03/26/2008, -1/+7While a few of his ideas seem a little nuts, the core belief that Government should keep the ***** out and leave the money in peoples pockets the right one.
- silentboom, on 03/26/2008, -1/+2You'll find out that the ideas you think are nuts are actually also right on the money.
- jrandyw, on 03/26/2008, -8/+2***** Ron Paul.
Can we start a movement on digg where every time we see his name we just reply with "***** Ron Paul"?- alittleroy101, on 03/26/2008, -0/+6***** Ron Paul.
..and down we go. - herkimer65, on 03/26/2008, -1/+2You can start anything you like.
I'm starting the ***** jrandyw movement right now.- jrandyw, on 03/27/2008, -0/+1Do it man!
- alittleroy101, on 03/26/2008, -0/+6***** Ron Paul.
- alittleroy101, on 03/26/2008, -21/+3Ron Paul can suck my left nut.
- bsegovia, on 03/26/2008, -10/+12Man, this is terrible... It's kind of a melancholy news.. on the one hand this affirms everything I know about the economy and the inner workings of the US monetary system (yay, I was right to follow Ron Paul), But on the other, it marks the beginning of the end of U.S. sovereignty. (Noo, end of America.)
I think it's time for a lolcat to be made.- alittleroy101, on 03/26/2008, -5/+2wow.
- laserblazer, on 03/26/2008, -12/+33No economy could survive Nixon, Reagan, Bush and Bush.
- dimebags, on 03/26/2008, -5/+1amen to that. http://digg.com/political_opinion/Republicans_spen ...
- texpundit, on 03/26/2008, -3/+6Yes... because the economy was BOOMING under Carter.
/facepalm
(no...I'm not a Republican)- netdance, on 03/26/2008, -1/+3Carter saved the dollar, by allowing Volker to raise rates enough to crack inflation. Now, why was that inflation there? The direct policies of Nixon, including closing the gold window. Read a book or something, will ya? And no, I'm not a registered Democrat, though I've been voting that way since Curious George came on the scene.
Don't get me wrong, Carter sucked. But this is one thing he got right - one of the few.
- netdance, on 03/26/2008, -1/+3Carter saved the dollar, by allowing Volker to raise rates enough to crack inflation. Now, why was that inflation there? The direct policies of Nixon, including closing the gold window. Read a book or something, will ya? And no, I'm not a registered Democrat, though I've been voting that way since Curious George came on the scene.
- VikingoTJ, on 03/26/2008, -3/+4You left out Johnson, Ford, Carter, and Clinton jackass.
- netdance, on 03/26/2008, -3/+2Why would Carter be on that list? Volker's actions saved the economy from the collapse set in motion by Nixon.
And why would Clinton be on that list? The budget actually had a *surplus* when he was in office, though that was more from luck and a Republican congress than his own efforts.
When calling someone a jackass, it's important not to show off how uninformed you are in the same sentence.- miket, on 03/26/2008, -2/+3Because that surplus wasnt really a surplus....he took money out of stuff like social security...
- VikingoTJ, on 03/26/2008, -0/+1Carter never made the spending cuts that were necessary. The surplus wasn't a true surplus when you factor in Social Security and Medicare obligations.
- netdance, on 03/26/2008, -3/+2Why would Carter be on that list? Volker's actions saved the economy from the collapse set in motion by Nixon.
- Midtowner, on 03/26/2008, -0/+2How does the President affect the economy?
Did President Clinton found the companies responsible for the tech boom? Yes, the wars, national debt (which the President has a role in, but Congress is just as culpable) have a small role in our economy. Mostly? It's just the business cycle and the result of boneheaded decisions by banks which have us in our current situation. In five years or so, this'll all be behind us. Don't buy the gloom 'n doom crap for a second.- netdance, on 03/26/2008, -0/+1The policies of the gov't (all of it) effect the economy in direct and measurable ways.
For instance, the current deficit - you really think that's not affecting the economy? Only in a small way? Seriously? It's what, 5% of the economy now?
And I've already mentioned the rodgering that Nixon gave the dollar - did you get to see what that did?
How about when Volker raised rates? Did that effect the economy? Regan's deficit spending, did that not effect the economy? Then where did the boom come from?
Trade policy with China - did that effect the economy?
Really? None of those things had any more than a "small role"?
- netdance, on 03/26/2008, -0/+1The policies of the gov't (all of it) effect the economy in direct and measurable ways.
- BESTenemy, on 03/26/2008, -0/+1Thanks for starting the list with the proper figure - Richard Nixon. 1973-2001 had brought us tremendous wealth since separation from the gold standard. If only we invested it into self reliance, instead of building an inverted pyramid empire. Now we're going bankrupt.
- mmigliari, on 03/26/2008, -6/+7When the dollar bonks they'll just institute the Amero.
- kazamx, on 03/26/2008, -3/+4Who would want to join their currency with America?
- drmangrum, on 03/26/2008, -2/+4Mexico
- fuzzylogic23, on 03/26/2008, -2/+0America's hat probably wouldn't mind joining in aswell.
- drmangrum, on 03/26/2008, -0/+4Why would they want that? Their currency is stronger than the US dollar.
- miket, on 03/26/2008, -1/+0yeah, stronger by about 2 whole american cents... http://www.xe.com/
- fuzzylogic23, on 03/26/2008, -2/+0America's hat probably wouldn't mind joining in aswell.
- drmangrum, on 03/26/2008, -2/+4Mexico
- mbeauchez, on 03/26/2008, -0/+2How come you guys are so paranoid of this NAFTA and Amero stuff? It worked out pretty good for us in the EU.
- luckynumnuts, on 03/26/2008, -0/+1>How come you guys are so paranoid of this NAFTA and Amero stuff? It worked out pretty good for us in the EU.
If America turns to the Amero and then enters the North American Union it is a direct insult to the millions of Americans who have died since 1776 fighting to defend the liberty and prosperity we love. Furthermore steps towards the Amero and NAU will lead to a new North American Constitution just as there is now a European Union Constitution which in effect will render the old constitution useless. I cannot and will not disrespect those who have given their lives defending the ideals as listed within the American Constitution.
- luckynumnuts, on 03/26/2008, -0/+1>How come you guys are so paranoid of this NAFTA and Amero stuff? It worked out pretty good for us in the EU.
- kazamx, on 03/26/2008, -3/+4Who would want to join their currency with America?
- JasonCox, on 03/26/2008, -9/+46BREAKING: Two countries figure out they have their own money and would prefer to use it in trades with each other.
- jrandyw, on 03/26/2008, -2/+3Exactly. This is a non-story. The political junkies have infiltrated the business section and go looking for any story that fits the business category. Then they put a political rant in the description. This story has nothing to do with the weakening dollar. It's about two countries not basing their exchange rates to each other on the dollar. Many countries have done this for a long, long time, even back when the US dollar was extremely strong.
- waspbr, on 03/26/2008, -0/+2oh ye of great stupidity, The countries were not trading in dollars exactly what happens is that prices are fixed in dollars, thus because the dollar keeps on falling their exports get less competitive and exporters lose money, also depending on the product, in the case of Brazil and Argentina about 80% of Brazil's wheat comes from Argentina, since almost everybody eats bread and stuff made of wheat, such basic goods get expensive in Brazil which can then create inflationary tendencies.
so long story short, they are dumping the dollar so they don't have to be affected by its fluctuations- jrandyw, on 03/26/2008, -0/+1Oh ye of great wisdom. I didn't say they were trading in dollars. I said they were indexing (or fixing) their currency values based on the US$. I'm basically making the exact same point you made. But I guess I'm of such great stupidity that I couldn't make it as well as you, your greatness.
- jrandyw, on 03/26/2008, -0/+1Oh ye of great wisdom. I didn't say they were trading in dollars. I said they were indexing (or fixing) their currency values based on the US$. I'm basically making the exact same point you made. But I guess I'm of such great stupidity that I couldn't make it as well as you, your greatness.
- waspbr, on 03/26/2008, -0/+2oh ye of great stupidity, The countries were not trading in dollars exactly what happens is that prices are fixed in dollars, thus because the dollar keeps on falling their exports get less competitive and exporters lose money, also depending on the product, in the case of Brazil and Argentina about 80% of Brazil's wheat comes from Argentina, since almost everybody eats bread and stuff made of wheat, such basic goods get expensive in Brazil which can then create inflationary tendencies.
- ppvanzella, on 03/26/2008, -0/+2Man, that was just plain dumb.
The reason why countries use the Dollar instead of their own currency was because it's the international standar for money exchange. If you are going to buy Euros from pesos, you have to go through the dollar.
So accepting payment in dollars was an advantage while the dollar was a stable currency. When the fluctuation got to the point it's now, it's better to use local currencies.
- jrandyw, on 03/26/2008, -2/+3Exactly. This is a non-story. The political junkies have infiltrated the business section and go looking for any story that fits the business category. Then they put a political rant in the description. This story has nothing to do with the weakening dollar. It's about two countries not basing their exchange rates to each other on the dollar. Many countries have done this for a long, long time, even back when the US dollar was extremely strong.
- yaosio, on 03/26/2008, -13/+4Move to the Euro? The Euro is going down, and going down hard. Every day it keeps dropping.
- synthpop, on 03/26/2008, -1/+6going down compared to what? not the dollar thats for sure. Euro in 2006: $1.20, Euro today: $1.57. if the Euro is going down then the Dollar is free falling. nearly every currency in the world has gone up compared to the dollar in the past couple of years so why keep trading in it?
- Amazetbm, on 03/26/2008, -1/+2Yep. The Euro was at its lowest point in November of 2000 (Hmmmm). Since then it has been on a steady climb, in relation to the dollar. The only bright note is that it will make U.S. exports cheaper.
- BESTenemy, on 03/26/2008, -0/+1And we're exporting what exactly?
- Jlaugh, on 03/26/2008, -0/+1We'll foreign car companies operate here, and there are still a few steel companies, and eventually our car companies might get their ***** together. Also we export loads of food. We have timber, oil, coal, uranium, iron, etc. Software, music, movies. Weapons.
- BESTenemy, on 03/26/2008, -0/+2Timber? I thought the whole thing with softwood lumber between the US and Canada had to do with the fact we imported more wood than we exported. Oil and coal? We import more than we export. We do facilitate trade, but we produce little of what we manage. That's the beauty of OPEC. Allows us to make a buck even when the buyers and the sellers are in foreign countries. Iron industry's not doing well, which is part of the complex reason why we've lost much of our car manufacturing (b eside the cost of labor). We're hesitant to build nuclear power plants. Everybody loves energy, but nobody wants nuclear technology in their backyard, so most of our plants were built some 30 years ago. Uranium? We're getting a chunk of our supplies from Africa. Software, musicc and movies? They're not enough to keep our economy going. On top of that, the copyright laws do not offer much protection for the material that gets distributed outside of the US. There's an issue of jurisdiction. If there wasn't, our lobbyists wouldn't be having such hard time shutting down the Pirate Bay.
Food? That's probably our best bet by far. There's still plenty of agricultural land. If only we did not waste it on Ethanol corn and other cash crops. The outlook is grim. We've got the potential but we're mismanaging our wealth. We're using up what is non-renewable and are not providing self-reliance. Our society prediminantly consists of service workers that consume the most without producing anything. We're going further down the path.
The only thing we've got really going is weaponry, and we're putting it to use, enforcing our foreign policy by waging continuous wars with nations that would present an economic threat. We've got the best formula. Instead of lowering our standards to stay competitive, we keep the third world dependant on us. They need energy that only the dollar can buy and we've got the dollar. For as long as Saudi lords are interested in our military subsidies, the major chunk of trade will be ours, with occasional blowbacks.
What would really suck at this point is if Russia got to that illusive Arctic oil. We've got absolutely no control over them. If they became the oil dealer, we'd loose our leverage in a snap. As for environmental consequences regarding potential new oil deposit discoveries... well, that's a whole different story.
- BESTenemy, on 03/26/2008, -0/+1And we're exporting what exactly?
- Amazetbm, on 03/26/2008, -1/+2Yep. The Euro was at its lowest point in November of 2000 (Hmmmm). Since then it has been on a steady climb, in relation to the dollar. The only bright note is that it will make U.S. exports cheaper.
- OrangeTide, on 03/26/2008, -0/+1If the Yuan is ever uncoupled from the Dollar it will skyrocket past the Euro. In a matter of decades the US has managed to transfer a significant portion of its wealth to China.
- sgiffy, on 03/26/2008, -0/+1There is far to much inflation risk in China for that to happen. We want them to decouple and they refuse.
- synthpop, on 03/26/2008, -1/+6going down compared to what? not the dollar thats for sure. Euro in 2006: $1.20, Euro today: $1.57. if the Euro is going down then the Dollar is free falling. nearly every currency in the world has gone up compared to the dollar in the past couple of years so why keep trading in it?
- mokodo, on 03/26/2008, -5/+24I see that brazil and argentina are stronger now, doesnt mean that they are changing to euros guys, just that they are using THEIR own currencies. Please, stay focus on the news, the world is not US-dollar-centered...
- Hetman, on 03/26/2008, -8/+3You are right. And that is unfortunate. The world should be US-dollar-centered. It is the only thing that is stopping us from plunging straight into a deppresion. As soon as China dumbs their remaining american currency the dollar will be worthless.
- lukemann, on 03/26/2008, -0/+1So then Airbus can just close up shop because it will be 1/2 as much to buy a plane from Boeing. Outsourcing IT to India will cease because it will be too expensive for American companies to afford.
- Jlaugh, on 03/26/2008, -0/+1Eventually world prices will reach an equilibrium. Maybe in like 30 or 40 years.
- lukemann, on 03/26/2008, -0/+1So then Airbus can just close up shop because it will be 1/2 as much to buy a plane from Boeing. Outsourcing IT to India will cease because it will be too expensive for American companies to afford.
- moonlessrat, on 03/26/2008, -0/+6I think people are looking at this as just 1 more in a multitude of recent symptoms that all is not well. Taken by itself this event is of no great consequence....but put into the bigger picture it's another splash of cold water in the face. Economically things don't look good for you guys...and as much as I hate to admit it a major US crash would have far reaching consequences for the rest of us.
- ppvanzella, on 03/26/2008, -0/+1Anyways, how could Brazil or Argentina switch to Euros if they are in SOUTH AMERICA, thus not allowed to join the European Union (witch is in EUROPE).
And Brazil is (along with China and South Africa) one of the fastest growing countries in the world. Argentina used to be quite a powerful country, but after their big crysis in the end of the 90s they lost a lot of power. Now they're getting it back, tho.- Jlaugh, on 03/26/2008, -0/+1They've been talking about a South American Union for a while down there.
- Hetman, on 03/26/2008, -8/+3You are right. And that is unfortunate. The world should be US-dollar-centered. It is the only thing that is stopping us from plunging straight into a deppresion. As soon as China dumbs their remaining american currency the dollar will be worthless.
- XanderDee, on 03/26/2008, -3/+8Qatar, Vietnam, India, and more You have to go to DC on June 21 and protest this. It can stop if interest rates are raised and not lowered to help the banks that are in trouble. Join the revolution to bring back the constitution.
- branjb, on 03/26/2008, -0/+1I think Qatar has its own problems to worry about. Their rials have some ridiculious inflation rate of upwards 10-20%, last I remember.
- elipabst, on 03/26/2008, -0/+2The problem is that you can't really just let the banks fold. A dangerous example of what can happen is Bear Sterns, it went from a multibillion dollar company to basically nothing over the course of a weekend, the entire company just went up in a puff of smoke. If you let a bunch of large companies like that fold, you are going to see a major stock market crash as people pull their money out. If you don't think that would have an effect on the overall economy, you're kidding yourself. It will likely resonate throughout the global economy as well. Plus if the banks are FDIC insured, then the taxpayer is going to be bailing them out anyway. We need to solve this credit crisis first before we fix the dollar.
- creationism, on 03/26/2008, -6/+12Don't they have WMD there in Brazil?
- Niubai, on 03/26/2008, -0/+9Yep, my dad's farts, he lives in Sao Paulo. It destroys everything around when deployed.
- waspbr, on 03/26/2008, -0/+2They have nuclear plants...
- Jlaugh, on 03/26/2008, -1/+1Brazil has nuclear weapons already, and is one of the top 5 weapons manufacturing countries in the world.
- Jun1obcx, on 03/27/2008, -0/+1There is no evidence here of what you you are saying. Any source?
- Niubai, on 03/27/2008, -0/+1Wrong. Brazil's 1988 Constitution states in Article 21 that "all nuclear activity within the national territory shall only be admitted for peaceful purposes and subject to approval by the National Congress". They are one of the few countries that can enrich uranium, but they're doing for their power plants.
- Jlaugh, on 03/26/2008, -1/+1Brazil has nuclear weapons already, and is one of the top 5 weapons manufacturing countries in the world.
- Adamlite, on 03/26/2008, -7/+9Buried for citing Xinhua, the biggest propaganda machine in the world (the White House is a close second).
- nirav72, on 03/26/2008, -0/+4The thing is - Xinhua is all state owned. So you can't really blame them for being a proganda machine.
- chicofaraby, on 03/26/2008, -2/+7Is the story wrong?
- thanakar, on 03/26/2008, -3/+2No, but it doesn't mean a damn thing really. All these two countries are doing is switching from US dollars to their own currency for bilateral trading.
- chicofaraby, on 03/26/2008, -1/+6So what difference does it make if it's on China's government news source?
- thanakar, on 03/26/2008, -3/+2No, but it doesn't mean a damn thing really. All these two countries are doing is switching from US dollars to their own currency for bilateral trading.
- craighoxton, on 03/26/2008, -0/+9Ten years ago because of LatAM bond defaults, nobody wanted currency from Argentina or Brazil - they wanted the dollar. Today, it's the other way round. How long before oil is traded in euros?
- jrandyw, on 03/26/2008, -0/+1How did you come to this conclusion? What does this story have to do with people wanting Reals & Pesos? This story is about tracking the exchange rate between the two directly rather than basing it on the US dollar. So since they haven't switched to using the Euro or the Pound or the Yen, does that mean those currencies are also doomed?
- craighoxton, on 03/26/2008, -0/+2Not a conclusion - 10 years ago governments in Latin America and then South East Asia had money problems and couldn't pay back their debt (I think Brazil and some others may have even defaulted). Latin America is now in much better shape. The Yen is no longer the big draw that it used to be as Japan's economy is more or less played out and no longer the growth story it was in the 1980's. The British Pound and Euro are far from doomed.
- jrandyw, on 03/26/2008, -0/+1So if the GBP & Euro are far from doom, why aren't Brazil & Argentine using one of those currencies as the baseline for their trades with each other. I wasn't saying that the GBP & Euro were doomed, I'm saying this story indicates doom for the USD as much as it does for the GBP & Euro. In other words, not at all.
- craighoxton, on 03/26/2008, -0/+2Not a conclusion - 10 years ago governments in Latin America and then South East Asia had money problems and couldn't pay back their debt (I think Brazil and some others may have even defaulted). Latin America is now in much better shape. The Yen is no longer the big draw that it used to be as Japan's economy is more or less played out and no longer the growth story it was in the 1980's. The British Pound and Euro are far from doomed.
- jrandyw, on 03/26/2008, -0/+1How did you come to this conclusion? What does this story have to do with people wanting Reals & Pesos? This story is about tracking the exchange rate between the two directly rather than basing it on the US dollar. So since they haven't switched to using the Euro or the Pound or the Yen, does that mean those currencies are also doomed?
- Skull0Inc, on 03/26/2008, -6/+0Whoa!! looks like the sh!t is going to hit the fan soon for the U>S economy. So when is China going to take over?
- slashbot, on 03/26/2008, -16/+8Oh please.
Buried for FUD in description- jrandyw, on 03/26/2008, -1/+2You'll be buried just because of your avatar. But you're dead right.
- RyanBlueThunder, on 03/26/2008, -1/+24It's funny reading that Americans need to "get fiscal policy in order" in the same paragraph as Argentina and Brazil. Argentina is a model for failed fiscal policies. Great county, beautiful women, but terrible economic policy there in Argentina.
- dsmx, on 03/26/2008, -3/+15You can thank the WTO and the world bank for the current problems in argentina.
- drgmdp, on 03/26/2008, -0/+2don't forget the IMF. and of course decades of bad governments
- Hangly, on 03/26/2008, -0/+1Some of the blame needs to go to the Mummy of Evita Peron.
But yeah, IMF, World Bank and WTO. Pretty much.
- slashbot, on 03/26/2008, -9/+7Welcome to the logic of the average liberal
- OrangeTide, on 03/26/2008, -0/+4Someone improves which automatically means the US is worse than they are.
- Hangly, on 03/26/2008, -0/+1I don't believe you're a real person.
- slashbot, on 03/26/2008, -9/+1Oh please. dsmx is a liberal apologist
- jejeje666, on 03/26/2008, -0/+3He's right on the money. Argentina is in the state it is after ~20 years of trying to suck up to the US, and following WTO and World Bank indications and economic policies. The 90's were the most devastating decade, where we had a 'minister of economy' whose policies drove over 50% (!!) of the country's population below the poverty line. This nice man is currently teaching economics at Harvard.
- OrangeTide, on 03/26/2008, -0/+1being against the WTO and WB is a *conservative* issue. (although perhaps not a neocon issue)
- Jlaugh, on 03/26/2008, -1/+1No it's more of a human issue not a right or left thing.
- scorchedearth, on 03/26/2008, -1/+11Thank the IMF and World Bank for that one.
- monsterCable, on 03/26/2008, -1/+2I understand logic of both countries. Their currencies are crap and dollar is crap so why use some third country crap when both countries have their own. Argentina and Brazil did not start using dollar for trade because they loved USA. Dollar used to be a stable currency that was convenient for the trade and now when dollar loses value every day it does not make much sense.
Just another small sad fact about dollar nowadays.- OrangeTide, on 03/26/2008, -0/+2Might be nice to get back on the gold standard again. Although the problem with the gold standard is when you import all your goods from Asia you are really hurting your economy. When it's not "real" money, it softens the blow significantly. We probably can't go on a gold standard unless we heavily tariff foreign goods to pay for the taxes and whatnot that are equivalent to what a domestic company would have had to pay.
- FairDinkumMate, on 03/26/2008, -0/+3Get a grip - you don't UNDERSTAND anything. Brazil's Real is currently one of the world's STRONGEST currencies! And with a strongly growing economy backed with a massive supply of underemployed & under-educated people to tap into it will continue to be so over the next 20 or so years.
Question for you - Warren Buffet over the past 2 years has been buying only 1 global currency - which one?- Hangly, on 03/26/2008, -0/+1The Real?
- CrushThemTorg, on 03/27/2008, -0/+1Argentina having more sound fiscal policy than us is a sure sign of the apocalypse.
- dsmx, on 03/26/2008, -3/+15You can thank the WTO and the world bank for the current problems in argentina.
- Azerael, on 03/26/2008, -2/+7It's all those damn pinko liberals' fault goddarn it. Obviously we ain't sellin enough bumper stickers.
- dsmx, on 03/26/2008, -0/+4You mean those bumper stickers made in china?
- n8f8, on 03/26/2008, -14/+3Loser comments from a loser liberal.
- nevpayne, on 03/26/2008, -4/+3I smell bullsh... sorry...Ameros...
- monsterCable, on 03/26/2008, -0/+1Is amero bad or good? I do not understand.
- fuzzylogic23, on 03/26/2008, -0/+1black vs white. good vs evil. sometimes things are neither good or evil, black or white. sometimes they compromise to form things like; mildly evil; semi-good, and grey.
- VitriolAndAngst, on 03/26/2008, -0/+2The Amero is bad -- mainly because it will be created by the crooks and the banks that designed this disaster in the first place.
Good luck in voting. This nation is already fascist.
- waspbr, on 03/26/2008, -0/+1some years ago there were rumors of a single currency for the mercosur (Brazil, argentina, Uruguay and Paraguay) trading block but it is very unrealistic and hasn't been talked about in a while, the countries have completely different monetary policies and have both been recovering from recessions, so a single currency is completely out of the picture.
- monsterCable, on 03/26/2008, -0/+1Is amero bad or good? I do not understand.
- VitriolAndAngst, on 03/26/2008, -10/+3Can people shut up with e "Ron Paul" said comments. Ron Paul said exactly what the progressives have been saying for 6 or more years. Ron Paul said what Ross Perot said, but, you know WAY LATER. He gets points for the obvious -- but the damn Libertarians and Republican economics have brought us to this problem -- they don't get to stick their clever fingers in the air and get pronounced geniuses. Give me a fricken' break.
The only way to learn from this mistake of "lack of regulatory oversight" and the fundamental problem that the banks were ever privatized in the first place (see comments of Thomas Jefferson and Lincoln if you want something with a clue), is to NOT start listening to the people who were part of the groups who created these problems when they all of a sudden "DISCOVER THE WHEEL." Reaganomics is just Mexico economics. And that is what has been killing this country since at least the 1980s.- zephc, on 03/26/2008, -3/+2(See my comment up the page to your similar but shorter rant. You are so factually incorrect I don't even know where to begin)
- OrangeTide, on 03/26/2008, -0/+4Libertarian economics? so us some libertarian-inspired policies in US economics.
And the country has been sliding downhill loooong before Reagan. You must have missed the 70s somehow. Or you weren't alive in the 70s? (and are unable to read a book covering the economic trends in the US?)- VitriolAndAngst, on 03/26/2008, -1/+1The 70's had to pay for the Vietnam war.
The difference between Sweden's economy and Mexico's isn't oil -- it's because they regulate their markets and invest in people.
I'm pretty sure Libertarians are a lost cause -- I've never seen one recognize the fundamental flaws in their economics. They don't even seem to understand that "free trade" involves thousands of pages of agreements in NAFTA and only exists INSIDE of a multinational corporation.
You guys always recommend the same things -- we've already done free trade and de-regulation you fools. If you like Ron Paul -- move to Mexico. Energy Independence, regulations that protect the citizen, and education -- much as what Jimmy Carter proposed many years ago. Well, the Northern European nations like Sweden and Denmark seem to be following this path. The only countries following the Reaganomics models-- other than the US are 3rd world nations.
But I really doubt that any of you are going to "get" this. You have an emotional problem with "sharing" that goes beyond any logic. Let's see how rugged individualism works when the economy and transportation shut down.- VikingoTJ, on 03/26/2008, -0/+2You are very ignorant about Mexico. Mexico's economy is extremely regulated, and that is one of the reasons for its stagnation. Check out their tax code, labor laws, governmental structure, and legal system. You can't get anything done here legally without a TON of paperwork....much more than in the US.
- VitriolAndAngst, on 03/26/2008, -0/+1How could the US be "sliding down hill" LOOONG before Reagan if the Twentieth Century is when we became the world's super power and strongest economy?
Was it some time after FDR, maybe happened over a long week vacation while Carter was in office? Or do you blame this all on Nixon and the Korean and Vietnam wars?
It hasn't been all up hill or all down hill. But the fundamental problem is that people have lost track of the common good.- Hangly, on 03/26/2008, -0/+1Because an empire is the ultimate bubble.
As soon as you push out way beyond your natural borders, either economically or politically, the doomsday clock starts ticking.
Nature naturally seeks equilibrium. That plus entropy eventually foils any human attempt to maintain an artificial political or economic structure.
- Hangly, on 03/26/2008, -0/+1Because an empire is the ultimate bubble.
- VitriolAndAngst, on 03/26/2008, -1/+1The 70's had to pay for the Vietnam war.
- Hetman, on 03/26/2008, -2/+4I know what we should do spend more and borrow more. That can only help us out. We should also subsidize health care because the government is so efficient at running businesses.
- FairDinkumMate, on 03/26/2008, -2/+3I wish people like you would look at facts instead of ideology. The US has arguably the World's greatest health care with regards to quality of care & providing the best medical professionals. Unfortunately, due to the ideology that this health care be provided solely in a "Free Market" fashion(funny really when you realise how little the whole US health care system resembles a free market) it is also one of the least "efficient" in terms of outcomes for dollars invested.
Stop listening to the US media, medical & pharmaceutical lobby groups & ideological politicians and start doing some research. For the amount of money your country as a whole invests in health care(even though it is RIDICULOUSLY small compared to let's say your security spending) every one of your citizens under any of the more efficient systems available would have access to the wonderful expertise your medical professionals possess.- VitriolAndAngst, on 03/26/2008, -0/+2We have great health care if you consider 25th place to be a huge win while we pay two to four times more than Canada and European nations who have better health outcomes -- which is the only way to effectively measure "health."
- FairDinkumMate, on 03/26/2008, -2/+3I wish people like you would look at facts instead of ideology. The US has arguably the World's greatest health care with regards to quality of care & providing the best medical professionals. Unfortunately, due to the ideology that this health care be provided solely in a "Free Market" fashion(funny really when you realise how little the whole US health care system resembles a free market) it is also one of the least "efficient" in terms of outcomes for dollars invested.
- SabrinaHeaven, on 03/26/2008, -3/+3Yet more evidence that the next major war will be in South America.
- jwolcott, on 03/26/2008, -1/+2...and it will be fought with drum sticks on tropical beaches by costume-wearing soldiers dancing to the beat of Samba music.
- joelito, on 03/26/2008, -0/+1No it will be fought with a Vietnam era carrier and a squad of A-4s... http://en.wikipedia.org/wiki/Image:Sao_Paulo_carri ...
- ThrstForKnwldge, on 03/26/2008, -4/+6Two more countries added to the Axis of Evil.
- SexyInsurance, on 03/26/2008, -0/+5The falling dollar makes our federal debt smaller. Inflation in this country is getting ready to be 70's style bad. I'm not convinced that the dollar is dead. These things go in cycles and the dollar is at a low now but will be turned around when interest rates rise again. Oil will likely go to a basket of currencies eventually. . . but to make money, you must buy low and sell high. These countries moving away from the dollar are 'selling low'. In the meantime the US public had better get out of debt and start saving. Our government needs to stop spending more money than they bring in.
- OrangeTide, on 03/26/2008, -1/+2When the dollar hits the bottom, and eventually starts to rise. People would be foolish not to pick it up and hitch a ride back to the top. When your currency moves little is when everyone wants to use it for trade. Moving currency can be a good thing. And it only becomes a real problem if the US's trade partners refuse to take payments in US currency.
Seems like everyone on digg could benefit from taking a unit or two on macroeconomics.- BESTenemy, on 03/26/2008, -0/+1The consequence of dollar economy collapse is economic isolation. For a coutnry that imports more than it exports it means serious downsizing. Also, without the petrodollar we would not be able to inhibit development in India and China, neither of which we can compete with in terms of labor costs. The thing is, we're insolvent and are unable to participate in a true open market without substantial reduction in our standards of living. The value of the dollar is not going to be a bell curve. The decline will be more rapid than the rise.
- Jlaugh, on 03/26/2008, -1/+2Serious downsizing in a highly armed country. Oh we shall know the meaning of the chinese curse "May you live in interesting times."
- Hangly, on 03/26/2008, -0/+1Our labor costs are getting more competitive every day.
- BESTenemy, on 03/26/2008, -0/+1The consequence of dollar economy collapse is economic isolation. For a coutnry that imports more than it exports it means serious downsizing. Also, without the petrodollar we would not be able to inhibit development in India and China, neither of which we can compete with in terms of labor costs. The thing is, we're insolvent and are unable to participate in a true open market without substantial reduction in our standards of living. The value of the dollar is not going to be a bell curve. The decline will be more rapid than the rise.
- VitriolAndAngst, on 03/26/2008, -0/+1"These things go in cycles" because we let the same scam happen over and over. Then the "experts" explain what happened -- the ones paid for by the people who ripped us off.
We may end up in more of a Weimar Republic spiral of falling currency. Our major export in this country is weapons. What are we going to do to earn the money back? More lawsuits for copyright infringement or with Financial Advisors? That's the issue with not investing in schools and not investing in actually producing products.
If we continue to sell off our infrastructure as collateral on these foreign loans -- we won't even be able to EVER pay back the country loaning us the money. THEY will decide the profit they make, and the terms.
The BEST thing that can happen is to forfeit the debt, declare a jubilee, and then issue a new currency with a Government Owned Banking system. Then, we can control trade again with Tariffs and not worry about income taxes -- you know, how the country USED to be run when the Founding Fathers were actually made of people who cared about the common good. Of course I know the havoc that will cause -- but the situation has been brewing with offshore banks for a while. They are screwing almost all the nations and will ride out this collapse and buy up everything of value. Unless you want to be an indentured servant to someone in Dubai -- I think you need to listen to me. - Hangly, on 03/26/2008, -0/+1"70's style bad" is pretty optimistic, don't you think?
- Hangly, on 03/26/2008, -0/+1"These things go in cycles," is true most of the time, yes, but sometimes the center is unable to hold and mere anarchy is loosed upon the financial world. (Apologies to Mr. Yeats.)
Cycles happen for a variety of real-world reasons; they're not magical.
Tell me this. What part of the cycle is it that makes the value of a currency and economy rise? Bounce back, as they say? A solid manufacturing base? An educated workforce? Anything else?
Does the US have any of that?
No?
Then the bottom half of this cycle could be very long indeed.
- OrangeTide, on 03/26/2008, -1/+2When the dollar hits the bottom, and eventually starts to rise. People would be foolish not to pick it up and hitch a ride back to the top. When your currency moves little is when everyone wants to use it for trade. Moving currency can be a good thing. And it only becomes a real problem if the US's trade partners refuse to take payments in US currency.
- NelsonR, on 03/26/2008, -0/+4It will get worse. Bernanke and Greenspan have made the dollar worthless. Wall Streets outright control of monetary policy is destroying America. Our rich don't care since they are invested heavily in foreign currencies and stocks. Screw America is their mantra, it's the riches that matters.
- OrangeTide, on 03/26/2008, -0/+2the middle class have their money tied up in housing, which have a long term trend of rising dramatically. and the poor spend their money immediately as save none of it. How exactly is a falling dollar only good for the rich, it seems that it doesn't have an effect on the other wealth classes in a direct way either. It's not falling fast enough to make those occasional raises in salary null for the poor and middle class.
You could argue that it raises the price of necessities, like food. But it raises the price of luxury items far more. I think you assume the rich are immune to economic changes because they orchestrated the whole event to their benefit (it's a conspiracy!). More likely the rich were not thinking long term or the economy got out of their control. (ie they are incompetent)
- OrangeTide, on 03/26/2008, -0/+2the middle class have their money tied up in housing, which have a long term trend of rising dramatically. and the poor spend their money immediately as save none of it. How exactly is a falling dollar only good for the rich, it seems that it doesn't have an effect on the other wealth classes in a direct way either. It's not falling fast enough to make those occasional raises in salary null for the poor and middle class.
- slashbot, on 03/26/2008, -12/+5If I had other currencies, I would be buying up the dollar as much as possible. The dollar will rebound, and all the fear-mongers will have pie on their face as the smart currency traders make millions.
- freedomwv, on 03/26/2008, -1/+2I make a good point, I just hope that you are right.
- Hetman, on 03/26/2008, -1/+2I agree eventually the dollar will rebound. But when, and how fall is it going to fall before hand. And how long will it be down?
- LokitheComplex, on 03/26/2008, -0/+5You can have all my Reichsmarks.
- Hetman, on 03/26/2008, -0/+1hyperbole much?
- BESTenemy, on 03/26/2008, -0/+2Weimar Era De Ja Vu. (for those unfamiliar, look up hyperinflation in Germany in early 1920's).
- Jlaugh, on 03/26/2008, -0/+1I certainly hope not, wheel barrows for a loaf of bread would suck. If the dollar collapses it won't rebound the central banks want to replace it.
- Hangly, on 03/26/2008, -0/+1Why will the dollar "rebound" as you put it?
Here's another way of looking at it. The dollar has been grossly inflated, both in value and importance, for a long time.
There are no natural market forces that made the dollar the reserve currency of the world. That was completely artificial.
So you know what? THIS is the rebound.
- Gnappster, on 03/26/2008, -1/+3farther down the toilet we go, when we'll stop, nobody knows!
- Hangly, on 03/26/2008, -0/+1The sewer?
- synthpop, on 03/26/2008, -0/+3the dollar can't maintain its status as world's reserve currency much longer. all the reasons for using US currency as reserve no longer apply (alot has changed since the 40s). the US is not the biggest economy in the world any more, it is not the most industrious country in the world any more and it is not the most financially responsible country (just the opposite). As a result the dollar is no longer stable and is sinking fast. Now imagine China were to step up and back their currency with a tangible asset offering a much stronger alternative to American funny-money which isn't backed by anything. How fast do you think the world would dump the dollar? Very fast.
- Hetman, on 03/26/2008, -1/+2Your currency does not need to be backed by tangible assets. Look at Europe. But you are right if and when China decides to dumb all their American bonds and securities on the open market it, it will ruin the remaining worth of the dollar. On the other hand if China does do that who is going to be buying Chinese product? It is a terrible ledge we are balanced on. How did the government allow this to happen?
- annamerikin, on 03/26/2008, -1/+9"The free ride for the US is soon to be over. Americans will have to get its fiscal policy in order soon, or they will suffer greatly."
This quotation does NOT appear in TFA. Where did this editorialization come from? Who is the ass who wrote this and where is his evidence? Was it the submitter him/herself?
Find an article that supports your reverse-chauvinism. Or write an article and get it published somewhere and let someone Digg you.
What you have done is intellectually dishonest, at the least.- freedomwv, on 03/26/2008, -1/+1Well, it does come from China. consider the source if you do not trust the information.
- OrangeTide, on 03/26/2008, -1/+1this is digg. it's popular to america-bash here. although I think maybe people should either change the nation for the better or GTFO if they hate it so much. (I can't stand crybaby liberals)
- jrandyw, on 03/26/2008, -0/+1It's this person's way of sneaking their politics story outside the politics category. Find a business story that has nothing to do with the point you want to make, then put your political opinion in the description of the story. They know that the "advocate" types on Digg will just read the summary and press the digg button. Poof! Their crap message is spread to all the people who don't normally read the politics section on Digg. The world is now a better place!
It's crap, and I wish more people would bury as "wrong topic". They won't.
- painhertz, on 03/26/2008, -5/+6I think it's more like the world's free ride on our back is over. If we go down they go down and they go down much harder and for a lot longer. Good luck to 'em. ***** them all. When you need to be bailed out of another stupid mistake, don't come crying to us. We're done. Scrap the WTO, NAFTA . Run the UN outa NYC. Tell 'em all to kiss our ass. China can eat their lead painted toys. Japan can try to figure out where to sell their cars. Guess we won't be eating any fancy Frech or Italian cheese.
- nbcaffeine, on 03/26/2008, -0/+3Man, I really like those cheeses.
- BESTenemy, on 03/26/2008, -0/+1I think what you meant to say way: "The US free ride is over". As for those nations you've mentioned, tell them they can now be buying oil in their own currency... and tell China since you won't be importing those lead-painted toys, you'll also be quitting your Walmart job.
Regardless, I fully do support dismantling on WTO, AFTA and separation form the UN, but for completely different reasons.
- phogasmic, on 03/26/2008, -1/+6What is with the extra ***** in the description? How is this the end of the US, I think it is a good thing for these countries to start using they're own currencies. Maybe I'm just naive but I think its good news.
- reed311, on 03/26/2008, -2/+4It's because these stories are coming from the Ron Paul doom and gloomers. They are trying desperately to prove that he is right, even though he has been wrong for 30 years. They aren't old enough to understand what "re-balancing" is and are still naive enough to believe a gold-standard would solve our problems. I, honestly, don't even think Ron Paul is stupid enough to believe a gold-standard would work, I just think he is trying to put out the point that we need to stop printing money.
These kinds of posts attract the conspiracy theory nuts like flies on *****.- phogasmic, on 03/26/2008, -0/+1Ron Paul supporters are starting to turn me off, the only thing we see eye to eye on is ending the war. Everything else is pessimism, doom,gloom and the Amero,
- OrangeTide, on 03/26/2008, -1/+3all articles need to be sensationalized else nobody will read them. Facts are secondary.
Also reporting on the future is not exactly "news", unless journalists have time machines.
- reed311, on 03/26/2008, -2/+4It's because these stories are coming from the Ron Paul doom and gloomers. They are trying desperately to prove that he is right, even though he has been wrong for 30 years. They aren't old enough to understand what "re-balancing" is and are still naive enough to believe a gold-standard would solve our problems. I, honestly, don't even think Ron Paul is stupid enough to believe a gold-standard would work, I just think he is trying to put out the point that we need to stop printing money.
- Arcueid01, on 03/26/2008, -2/+5Well we just can't seem to figure this out. May be this will spark Americans to quit electing boneheads to run the country. Maybe we will get rid of the Fed who does nothing but create bubbles in the market. This ***** is a big deal as it will be my generation picking up the pieces.
Nice work America- Hetman, on 03/26/2008, -1/+1Just wait until this bubble bursts. The government cannot bail every bank out that fails. You should not be loaning money to people who cannot pay you back. You cannot keep lowering interest rates forever. It makes no sense. Im not an economic proffesor or expert. But every piece of literature I read on the subject points this out. I do not understand what the government is doing.
- afterthoughtCA, on 03/26/2008, -0/+0probably.
- misconstrued, on 03/26/2008, -2/+5Meanwhile none of the Democratic candidates or McCain are saying anything about monetary policy. Instead all we hear about is Obama's preacher and Hillary under sniper fire...
- VitriolAndAngst, on 03/26/2008, -1/+2I guess you don't visit the Democratic web sites. Both Obama and Hillary have very detailed economic plans. Here, this one took me about .5 seconds to find; http://www.barackobama.com/issues/economy/
The media just likes to cover the food fight. If you want issues from a Democrat, they can talk your head off if you have a day to spare. - waspbr, on 03/26/2008, -1/+1They can't say anything about a monetary policy because the central bank is independent it is not government controled, influenced to some extent but not controlled.
The executive branch can only control the economy through fiscal policies
- VitriolAndAngst, on 03/26/2008, -1/+2I guess you don't visit the Democratic web sites. Both Obama and Hillary have very detailed economic plans. Here, this one took me about .5 seconds to find; http://www.barackobama.com/issues/economy/
- freedomwv, on 03/26/2008, -1/+9Well well well. All of us who have for several years been warning of what the Fed is doing to the value of the dollar are not looking so much like a bunch of wing-nuts anymore. By the way Ron Paul told you so!
- VitriolAndAngst, on 03/26/2008, -2/+1Which wing?
The LEFT has been screaming about this and the RIGHT has been saying "deficits don't matter."
There is a balance to government intervention and corporate competition that we have gotten on the wrong side of -- mainly because of our messed up election system. But that is another conversation.- Hangly, on 03/26/2008, -0/+1Wingnuts have two wings.
- VitriolAndAngst, on 03/26/2008, -2/+1Which wing?
- pigfister, on 03/26/2008, -1/+2
More countries to add to the axis of evil list then George Bush, how long before they are making nuclear weapons and an american invasion is orchestrated?- VitriolAndAngst, on 03/26/2008, -0/+1did you know that nuclear weapons manufacturing in the US is handled by a private company?
Do some googling on who owns it, and some strikes on working conditions and I think you will have trouble sleeping.
- VitriolAndAngst, on 03/26/2008, -0/+1did you know that nuclear weapons manufacturing in the US is handled by a private company?
- JointVenture, on 03/26/2008, -0/+2I'm going to burn dollars when I attend the Bohemian Grove ceremonies this summer!
- chili555, on 03/26/2008, -2/+2Please explain to me how it helps or hurts the US dollar whichever currency Argentina and Brazil use _between_themselves_. BTW, Argentina is no great example of sound fiscal policy. Why should I care what they trade with?
- ka2err, on 03/26/2008, -0/+3> Why should I care what they trade with?
You should care about any single dollar that is not in the US and hope that it does not come home...- chili555, on 03/26/2008, -0/+1I hope a lot more come home, via exports, so we can narrow the trade deficit. Now _that_ would strengthen the dollar, not weaken it.
- astland27, on 03/26/2008, -0/+0supply and demand. any dollar that isn't being held by someone is flooding the market. the more dollars on the market, the less it is worth. If these 2 countries aren't holding 20 billion (thank you random number generator) dollars, that 20 billion becomes inflation.
queue diggers who took more than one econ class to start the corrections......- chili555, on 03/26/2008, -0/+1So, I guess no more exports? Microsoft, for example, can't sell any more copies of Vista overseas? Or do you insist they sell only for Euros? Also, given our trade deficit, do you really think the inflow of dollars is going to catch and surpass the outflow in your lifetime? With $105/barrel oil?
- ka2err, on 03/26/2008, -0/+3> Why should I care what they trade with?
- cuetzalcoatl, on 03/26/2008, -0/+5I see a lot of people saying that "Brazil and Argentina finally realized that they have their own currency".
You see, I don't know how high school teaches its kids about "International Economy" in America, but here in Brazil we have the obviousness for the reason why all other countries use Dollars, instead of their own currency in international trade: Dollar is the Standard (as in "Gold Standard") since Bretton Woods summit.- netdance, on 03/26/2008, -0/+2High schools in America don't cover economics, or even world affairs. There's a brief touch on a slanted view of history, but that's about it. Better that they should all spend an hour at Gym class than learn something useful.
- cuetzalcoatl, on 03/26/2008, -0/+1Oh my, I can't believe that north American high schools have no economics! Seriously! I am not being sarcastic here!
I thought your education was heavily based on economy, since, well, you have the biggest one.
Of course that Brazilian education is not even comparable to the North American, but we get a kind of economy 101...
- cuetzalcoatl, on 03/26/2008, -0/+1Oh my, I can't believe that north American high schools have no economics! Seriously! I am not being sarcastic here!
- netdance, on 03/26/2008, -0/+2High schools in America don't cover economics, or even world affairs. There's a brief touch on a slanted view of history, but that's about it. Better that they should all spend an hour at Gym class than learn something useful.
- edebolt, on 03/26/2008, -4/+1The Rial and Arg Peso? The first is hugely overvalued and the second is seriously inflating at 15%. That's a trainwreck waiting to happen.
- FairDinkumMate, on 03/26/2008, -0/+3Based on the fact that you can't even spell(It's the REAL) I guess I won't get a logical response but I'll ask anyway. What do you base your statement about the Real being overvalued on? As an Aussie living in Brazil, I can tell you that for the last 3 years the Aussie dollar & Brazilian Real(2 very different & quite unconnected currencies) have remained virtually static against each other. During the past 18 months or so though both have increased in value significantly against the US dollar, primarily due to the US dollars drop & the fact that both countries export huge amounts iron ore which is currently in serious demand in China & India.
But basically when compared to non-US currencies(the pound & Euro for example) the Real has been relatively static in value(although slightly up I agree) so it doesn't appear to be overvalued, rather just strengthening against the US dollar due to the US dollars own drop - Hangly, on 03/26/2008, -0/+1Yet somehow they think it will be less of a trainwreck than trading in dollars.
- FairDinkumMate, on 03/26/2008, -0/+3Based on the fact that you can't even spell(It's the REAL) I guess I won't get a logical response but I'll ask anyway. What do you base your statement about the Real being overvalued on? As an Aussie living in Brazil, I can tell you that for the last 3 years the Aussie dollar & Brazilian Real(2 very different & quite unconnected currencies) have remained virtually static against each other. During the past 18 months or so though both have increased in value significantly against the US dollar, primarily due to the US dollars drop & the fact that both countries export huge amounts iron ore which is currently in serious demand in China & India.
- insomniac8400, on 03/26/2008, -1/+3It's sad that Bush and his cronies can screw this country so much, but escape impeachment.
- frenchi, on 03/26/2008, -0/+1I feel you,but do you really think impeachment will do anything? really?
it wont even feel like a slap in the face to Bush, it'll be more like that fly that's making noises when you try to sleep, it dies after a couple days. I don't want my tax dollars going towards some useless investigation. I know he totally ***** us. That's enough for me.
- frenchi, on 03/26/2008, -0/+1I feel you,but do you really think impeachment will do anything? really?
- Icebath, on 03/26/2008, -1/+3Add this to the upcoming Iranian Oil Burse which will decouple the dollar from Iranian oil and we will see how low the dollar will go. Presuming we are not at war with Iran by then...
- BESTenemy, on 03/26/2008, -0/+2We can't afford another war. If we could, those "defiant bastards" would not be giving us the finger. They see we can barely do the job in Afghanistan and Iraq. They know we're out of breath, so they do what is completely logical under these circumstances.
- ghostmutt, on 03/26/2008, -2/+0this isn't the "end of the dollar", this is practical fiscal sense for Argentina and Brazil. For those who don't understand this, you could take your dollars to these countries, and spend them on the street. This means that the local currency can't be used to manipulate your national marketplace, but that your county suffers from the unintended consequences of the US currency being manipulated, e.g. the fed reserve lowering lending rates last week.
- VitriolAndAngst, on 03/26/2008, -0/+2It's the END of the artificial "float" of the dollar.
Nations for the past 40 or more years have settled debts and traded oil in dollars. THAT is the only reason that during the 1980s our money wasn't dumped. We are a productive nation but it's more based upon financial ownership --- a tenuous convenience relationship with Billionaires.
If you noticed that Bill Gates, Berkshire Hathoway, Dick Cheney, and George Bush "diversified" their holdings into non-us funds, and more of it in Dubai -- then it should be obvious that the interlocking directorates of Multinational corporations, that use our military to provide them with cheap resources, have no direct tie to the United States.
Not only is Brazil "decoupling" from the dollar -- so are the Billionaires and the "smart" money. When they are gone, with their copyrights and royalties -- what is left of "value" in the Dollar? Maybe a toll road owned by the Chinese, and a few thousand WalMarts, and some fast food joints and strip malls. There is still a lot of good know-how in this nation, but we've been pumping it into lawyers and accountants.
This country has been hollowed out. The DOLLAR has only been inflated by its use in trade and oil. The banks are going to move their money offshore and "borrow" money to replace their own from the Government, and our Government will let them because they are sold out to lobbyists and/or compromised by internal spying.
The Fact that Bush has not been impeached, that we are at war in Ira, has everything to do with our coming calamities. - SteveMax, on 03/26/2008, -0/+3Here in Brazil, you can't buy anything with dollars (unless you're on a major international tourist destination, like Copacabana). You missed the point of this.
Wen Brazil and Argentina traded goods between them, the money that was exchanged was American dollars. The seller evaluated the product in USD, the buyer paid the needed amount in USD.
Now, the money to be exchanged will be either Brazilian reais or Argentinian pesos. The buyer will not have to buy dollars before paying for the goods, the seller will not have to sell dollars after getting paid. It will all happen only in local currencies.
Why is this bad for the USA? Because the dollar was always used on those types of trades between two countries, specially countries with an history of economical problems such as Brazil and Argentina. However, now the Real and the Peso are more stable than the dollar, so it makes sense to use them. This undermines the dollar's position as the global standard. - Hangly, on 03/26/2008, -0/+1"this isn't the "end of the dollar", this is practical fiscal sense for Argentina and Brazil."
(Lord, give me patience...)
Ask yourself, young padawan, WHY it makes practical fiscal sense for Argentina and Brazil to stop trading in dollars now, when it wasn't a year ago. Ask yourself WHY they started trading in dollars in the first place. Now ask yourself if this change might be indicative of something larger.
(Hint: in economics and politics everything means something. There is no such thing as a meaningless policy change.)
- VitriolAndAngst, on 03/26/2008, -0/+2It's the END of the artificial "float" of the dollar.
- phoenixshard, on 03/26/2008, -5/+5I got my finance degree on Digg. They said that we should listen to Ron Paul and put our money into the gold standard (which went the way of the dinosaur a long time ago for a good reason). 2 countries in SA are using their own currency when counting trade between them, oh noes!! the world is dying for the American dollar. You people really think people weren't saying the same thing during the 70's? How about other times throughout our history?
- VitriolAndAngst, on 03/26/2008, -1/+2You gain a point for having disgust for Ron Paul followers.
You lose a point for not getting how critical our financial situation is.
If you agree with me that the "Fair Tax" is yet another scam than I think you are redeemable.- phoenixshard, on 03/26/2008, -0/+1Never said we weren't having financial issues in the country. We most definitely are, but to think that we haven't been there and to say the dollar is dead is overstating things. It was said in the Great Depression, then again during the 70's and even again during the early 90's. That's what happens in a capitalist market, there are ups and downs, sometimes the downs go way down, but then again sometimes the ups go way up too. The market always brings itself around in the long run though.
- VitriolAndAngst, on 03/26/2008, -1/+2You gain a point for having disgust for Ron Paul followers.
- sangjmoon, on 03/26/2008, -1/+4This would be so funny if there weren't so many clueless people posting here who seem to believe this tripe. The reason why they traded in dollars is because it had a lower rate of inflation than their own currency. If they've got their own inflation under control, bully for them. The dollars they have been using will just be traded in other avenues. As the dollar declines, US products and services become cheaper and more competitve and in more demand. As demand increases, so will the demand for the dollar to purchase those products and services. It's a balance, and for too long, foreign companies and our own government have been artificially tipping the balance to keep the dollar high to avoid losing exports to the USA.
- netdance, on 03/26/2008, -0/+1All that would be well and fine, if only we didn't have to borrow billions every year just to keep afloat. If the dollar goes down more, expect borrowing costs to skyrocket.
And that won't be good at all.- EdwrdDiggrhands, on 03/26/2008, -0/+0Yes- the enormous deficit and national debt are the problems here. A balanced budget could address almost all of the real problems that are causing the devaluation of the dollar. That means less government spending and no tax cuts-- aka what we used to count on Republicans for (well, for less government spending at least), but can't anymore.
- BESTenemy, on 03/26/2008, -1/+1In an open market artificial leveraging is a short-term solution. As for the goods and services becoming cheaper with dollar decline, first 0 what goods? Second, when it comes to services the right question is: "Cheaper than in India or China?" You have no idea how low the costs have to be in order to be considered "competitive". If it wasn't for artificial currency leveraging we'd stand no chance in selling anything. It's not even greed at this point. The cost of living drives the cost of labor. When one's inflated, so is the other.The worker has to make the ends meet, paying for housing whose value is determined by speculative housing market bubble with sub-prime credit.. yada-yada, the whole shebang. Everything's overblown. Unless we all move into tents and take the diet down a bowl of noodles a day, we won't be competitive.
- netdance, on 03/26/2008, -0/+1All that would be well and fine, if only we didn't have to borrow billions every year just to keep afloat. If the dollar goes down more, expect borrowing costs to skyrocket.
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