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barackalypseApr 23, 2011
Don't get used to it, divest it. Its easy enough to get a Canadian dollar denominated account. Canada is in better financial shape than any of the other G7 nations and has the lowest debt to GDP ratio of any of them.
http://www.x-rates.com/d/USD/CAD/graph120.html
The problem with silver and gold is that there are allegations that the Fed is using banks to actively manipulate those markets and also the fact that once before the Government ordered all privately held gold confiscated.
patrickbrownApr 23, 2011
If US dollar collapses (this must be what you fear, otherwise you would simply be wanting to protect against inflation... which can easily be accomplished without moving to other currency), you do not need to worry about where you have your money. The entire world would be thrown into a depression that would make the Great Depression look like glorious days of the past. Your money would not be safe _anywhere_.
To be fair, that will never be allowed to happen (by other major industrialized economies, let alone the US).Comment is buried, click here to see the rest.
xophermvApr 23, 2011
Wow, evidently you don't study economics. A low dollar won't do much of anything except make American products cheaper on foreign markets in comparison to foreign goods. That will do more to encourage American manufacturing than any policy from the past 30 years.Comment is buried, click here to see the rest.
barackalypseApr 23, 2011
A low dollar does a lot of bad things, especially for a Country that imports more goods than it exports. It means all those "cheap" goods we buy from China just got more expensive because the currency we are using to buy them got less valuable. It also means the price of all the commodities that are traded in dollars just went up as well. And when the price of the commodities goes up the price of all the goods we buy goes up.
I swear, sometimes I have no idea where you people come from with these half-truths.
xophermvApr 23, 2011
It's called economics 101.
Yes, Chinese goods become more expensive with a weak dollar. That's a good thing for people who live and work in the US. That means more people buying American goods rather than Chinese goods. That means more jobs for people who work for American manufacturers. That means less companies sending American jobs to China.Comment is buried, click here to see the rest.
barackalypseApr 23, 2011
Unfortunately the real world isn't economics 101. Lets say the US has 10% unemployment and lets further assume that for all the jobs to come back to the US our currency has to devalue by 13% (my link below shows this is the Chinese cost advantage over us in producing a certain alumnimum part). So, you pickup 10% more employment, but you lose 13% of your purchasing power, which means on net you are actually worse off.
Further to that point, in 2008 China had 13% lower costs on producing the alumimum part in the survey I link below. Mexico produced it 31% cheaper. Assuming the jobs can only move within the 3 countries listed and the US dollar loses 10% of its value, where will the jobs go? They won't come back to the US, because China and Mexico are still cheaper, meanwhile prices in the US rise. If the US dollar falls 20% the jobs will move to Mexico
http://www.businessweek.com/magazine/content/09_24/b4135054963557.htm
xophermvApr 24, 2011
A lower dollar also moves the dollar lower against all foreign currencies, including the peso.
Further, reducing our overall purchasing power makes perfect sense if that also means reducing our unemployment to a manageable level. Our economic system doesn't function properly with so many people out of work and living on unemployment checks.
peppermintpigApr 25, 2011
Unfortunately the arbitrary cost restrictions on manufacturing domestically still curb the possible benefits derived from a loss in value on the dollar. Additionally, since the inflation of the dollar and its effects are a progressive trend, it continues to press negatively on the ability to import where it would be more efficient to do so as businesses in China need to adjust for the anticipated loss in trade value.. but again too many regulations stifle the ability to compete, including anti-competitive subsidy on domestically produced food.
pivenApr 23, 2011Submitter
How low can it go?
ageofmasteryApr 23, 2011
Considering how hard you on the right are trying to destroy our economy, pretty damn low if you get your way.
BaddJonesApr 23, 2011
This is the result of whats been done already, it wasn't caused by what someone plans to do in the future.
linuxpersonApr 23, 2011
You really need to move past this red team blue team s**t, it's childish.
publiclurkerApr 23, 2011
But only when it makes people like you look bad, right?
peppermintpigApr 23, 2011
So the political elite does something for you and your people? Some sort of gay nazi subsidy?
linuxpersonApr 23, 2011
How could it make me look bad when I'm openly against both sides?
BTW, nice job not resorting to playground name calling tactics, that's unusual for you. Keep up the good work!
Unregistered_CowardApr 23, 2011
Just out of curiosity, could you tell me who is sitting in the White House at this point in time? Who established back-to-back records for national debt?
Which parties president is sitting around fiddling while the economy burns?
sanmanApr 23, 2011
This crummy situation was ultimately caused by the US Federal Reserve, and the runaway tax-and-spend policies of the Democrats (who not-so-coincidentally created the Federal Reserve)
The dollar drops when people pull their money out of it. They pull their money out of it when they lose confidence in it. They lose confidence in it when they see the US govt borrowing endlessly without the ability to pay back what it's borrowing. Nobody leaves their money with a deadbeat - they keep their money away from a deadbeat. Therefore US Dollar drops - plain and simple.
Closed AccountApr 23, 2011
I'm an American working abroad with student loans to pay...I LOVE IT!
robert5150Apr 23, 2011
Well this is what happens when we the people allow the govt to involve us in now 3 wars (yes libya is a war it just hasnt really turned into a war yet).
Personally i cant for all the losers that sit around all day waiting for a useless govt to do it all for them to fall flat on their faces... I just hope that i can save enough before the dollar really bites and somehoe keep it together....
If the dollar is so weak and if we had a govt that actually represented us then why wouldnt O-Dumbo immediately stop all foreign wars? beucase they (yes the govt) wants the dollar to fail...
barackalypseApr 23, 2011
So according to http://costofwar.com/en/ our wars in Afghanistan and Iraq have cost a bit under $1.2 trillion since 2001. Our 2011 budget deficit was projected to be $1.5 trillion. Even if you got a total refund for 10 years of war you wouldn't even be able to balance this year's budget. On the other hand, the yearly cost of Social Security, Medicare, and Medicaid entitlement spending is over $1 trillion.
robert5150Apr 23, 2011
I would drop, reduce or remove those entitlement programs. I would also stop taxing for those programs.
There is alot more that I would do...
BaddJonesApr 23, 2011
Seems like we better save that change.
peppermintpigApr 23, 2011
http://www.coinflation.com/
Take note that while coin silver is certainly appreciating, current issue coins like nickels are already exceeding face value.
doskrautApr 23, 2011
joseph stalin said america will rot from within,and i am seeing it.
Closed AccountApr 23, 2011
By urging the printing of more money and causing a depreciation of the dollar the Obama Administration is underhandedly increasing the taxes on everyone, both rich and poor. A twenty percent reduction in the value of the dollar brought about by Obama policies is the equivalent of a 20% tax on everyone that is being used to fund the bribes of Obama with the printed money. He is essentially transferring 20% of all of the wealth measured in dollars to the government.
barackalypseApr 23, 2011
Actually, it is worse than that, because it makes any investments you hold look like they have appreciated by 20% (all else equal), which means you owe capital gains on them, so you actually lose the rate of inflation times your marginal tax rate in value.
xophermvApr 23, 2011
He's also making American goods sold in foreign markets cheaper by 20%. That's a 20% boost to American manufacturing, creating more jobs here at home.Comment is buried, click here to see the rest.
Closed AccountApr 23, 2011
Right, thats why our unemployment is so low.
xophermvApr 23, 2011
The manufacturing sector has expanded for 20 consecutive months now. It's been growing at rates not seen since 2004. Last year, the manufacturing sector created more jobs than it eliminated for the first time in more than a decade. According to the Wall Street Journal, that number will likely continue to increase in 2011.
travelsonicApr 23, 2011
"Don't Like a Weak Dollar? Might as Well Get Used to It"
Yeah, blind apathy made everything better in the past. ~_~
karmashockApr 23, 2011
It's good that things are collapsing.
We've tried to explain things to the asshats. We've tried to reason with them. We've tried to compromise.
But they won't hear it. They just want to spend more, raise taxes higher, reform nothing, cut nothing, and generally run the whole system like a bunch of two year olds on a sugar high.
Fine.
Destroy the system. With it, you destroy your ability to enact policy. Undermine the constitution while you're at it since you don't seem to grasp that it is that "old and irrelevant" document that gives you the power to write laws in the first place. Just destroy our national inheritance. You don't deserve it and apparently never did.
Once US has turned itself into a second world state we'll have a more humble political class. Made humble because they'll have the realities of their position shoved forcefully in their face by bounced checks and an increasingly disinterested electorate.
Hopefully once the bribes stop flowing we can climb our way back out. But until the spending spree stops we can go only down.
peppermintpigApr 23, 2011
Agree except for the humble politician thing. Even a dirt poor economy based in political violence will sustain egotistical power mongers. Voluntary society is the best solution I see.
karmashockApr 23, 2011
Depends on how they sustain power. If they sustain the same way they do now, they won't be able to afford it.
Without the bribes the democratic party would implode. And yes, just as the bread and circuses were a bribe to the roman masses... so too are food stamps, cradle to grave healthcare, and a whole system of subsistence all balanced on keeping the money flowing..
Cut it off and the system withers. They could shift to a more mexican system... one where the republic increasingly exists in name only but that only would further erode the position of hte state... some kind of major collapse followed by insurrection would be inevitable.
peppermintpigApr 23, 2011
Probably more lower level bribery to come as bureaucracies thin out and state backed unions lose financial clout and lean on political monopoly. These are competing forces of contraction, painful to the political establishment. Any lingering predation is still dangerous, particularly if domestic military deployment is enacted in the collapse.
The empire that exists now will end. Unfortunately waves of fascism may follow.
karmashockApr 23, 2011
They'll have to make alliances with corporations. That's how the mexican system sustains itself. They subsidize the lean government bribes with government monopolies. Mexican telephone company... mexican oil and gas company... etc.
All monopolies... and the kick backs from that keep the system going. I wouldn't be surprised if the drug cartels didn't chip in at some level. Anyway, the point is that if the status quo is only stable because of the money. Take that away and they'll have to adapt. It's hard to think of an adaptation that wouldn't put them at a disadvantage in one way or another. The democrats are poisoning their own well.
It's just a matter of making them drink.
peppermintpigApr 23, 2011
Cartelism and corporate monopoly, backed by a force of arms, is a feasible transition for left style labor protectionism. The MIC and prison industries make up much of the republican establishment's bread and butter. They all can grind away further at liberty.
karmashockApr 23, 2011
MIC is relatively small compared to most other US industries and it's actually bipartisan as far as funding. You have to remember, the US video game industry is over 12 billion.
As to prisons, I don't have any information on that but there are plenty of them in democrat controlled states so I don't think that's very credible.
You might make an argument about the farm and mining lobbies though. The democrats don't seem to have very close links to US oil, coal, lumber, wheat, etc.
All those jobs are pretty labor intensive but the unions tend to be more right of center and the companies don't seem to lobby as much for the democrats.
Anyway, at the very least it will strip anyone that participates in it of any claim to moral righteousness.
angrycat70Apr 23, 2011
Welcome to the Great Depression V 2.0
Thanks for printing all that money you brilliant democrats. Yeah- you know all about economics. Printing money with no backing is always a brilliant move.Comment is buried, click here to see the rest.
theswashbucklerApr 23, 2011
Yeah, Republicans don't bear any responsibility in the debt.
George Bush came into office with a surplus and nearly doubled the debt in his eight years.
Why are Republicans so f**king stupid?Comment is buried, click here to see the rest.
Unregistered_CowardApr 23, 2011
Shifting blame, how democratic.
theswashbucklerApr 23, 2011
LOL!
Project much?
Unregistered_CowardApr 23, 2011
Projecting? Are you honestly living with the belief that the Democrats shoulder no responsibilities in the issues facing this nation?
theswashbucklerApr 23, 2011
You didn't answer the question. Not only do you project, but you avoid as well. You should seek professional help.
Unregistered_CowardApr 23, 2011
For you to accuse me of projecting, which I sincerely doubt you actually understand the definition of, I'd have to be a Republican, or at the very least have shown a steadfast belief that GOP's hands are clean.
Shifting blame seems to suit your MO though.
4Herp2Derp0Apr 23, 2011
It seems they fail to acknowledge that the wars were kept off the books until Obama put them on it. Even though it looks like Obama has jacked up the debt and deficit, a lot of it was from the wars, including the costs of the wars long before Obama even announced his candidacy. Not to mention, they tag on the spending for the next 10 years even though it hasn't been spent yet(health care act). They also tag on the stimulus that Bush put into place before leaving office.
Putting the wars on the books was part of the transparency that Obama ran on. If the Republicans don't like the cost, scream and shout to end the wars.
No, no. Instead they scream and shout to quit helping Americans but never say a word about the wars.
theswashbucklerApr 23, 2011
Doing the wars off budget made the deficit look better, but did nothing for the debt.
Unregistered_CowardApr 23, 2011
So Obama flushing the economy down the toilet is ok because Bush did it?
Talk about projecting
jimtrafApr 23, 2011
I got a better idea: let's get rid of our weak government.
laadebugMay 28, 2011
I know the all mighty US dollar is weak I was told to invest in silver.
casf1bApr 26, 2011
As long as your government continues to try to rescue everyone, it will thus drag everyone down also.
chukaobianozieApr 25, 2011
So I'm guessing when we travel to foreign countries they're not so happy to see our all American dollar at work. I'm sure they've grown accustomed to the Euro now. Geez, somebody tell me when did our dollar get so weak again? lol
rixar13Apr 25, 2011
Get Used to It.... Smile :-)
gkiltzApr 24, 2011
It will be back! The Euro will survive, but barely. So much of China's "economy" is smoke and mirrors. India and Brazil are only a little bit better.
It will take years for Japan to fully recover. When it does, it's market won't be any younger.
lokcjawApr 24, 2011
Well as a family member with a share of the farm, I have to say Hooray for the weak dollar. We kept about half of our harvest back this fall, and sold recently for $7.00+ a bushel. Total our profits were 150% greater this year than last (profit 2009 multiplied by 2.5). With the increase in seed and fertilizer costs, and the increased revenue at harvest (futures are looking like $8.00/bushel for corn) we are guessing that our profits will be about 75% greater in 2011 than 2009. Ag is still one of the largest industries in the US, and you can anticipate some farmers dropping some wads of cash in your restaurants and retail stores.
bluenoseboyApr 24, 2011
Move to Canada, if you don't mind the cold. We've got room for you.
x2ltApr 23, 2011
Already used to it...
Closed AccountApr 23, 2011
and the "brics" will rise from the ashes, and signal a new dawn, in human development and wealth creation...;)
tazarooApr 23, 2011
the dollar has always been weaker than many currencies. i have always been able to buy twice as many dollars for my euros or sterling. the dollar has never been the strongest currency.Comment is buried, click here to see the rest.
agmlauncherApr 23, 2011
That's not how currencies work. You're mistaking purchasing power for value.
I can buy 82 yen for 1 dollar, does that mean the dollar is 82 times more valuable than 1 yen? No, because you need more yen to buy what you want.
If a car costs $30,000 in the US, then it will cost approximately 2,460,000 Yen in Japan. So it's not like I can go to Japan and buy a car for $365....
tazarooApr 23, 2011
yes that is right but America answer to their money problems is printing more which is decreasing the dollar.. i think the point is that the dollar is getting to weak which is a problem for everyone. one country cant work with out the other. we all rely on each other so for example if the euro goes down then sterling goes up no one can afford to buy from the uk etc... at the end of the day what does it matter, money and power will be our end and thats every single one of us.
bdbrApr 23, 2011
"Always"? About ten years ago you could buy a Euro for 80 US cents.
tazarooApr 23, 2011
that was before the euro became a proper currency.
user500Apr 23, 2011
I font like week leaders ether. Also A week dollar F***s the Chinese since they keep there funny money at 1/5 of a dollar so if the dollar became worthless they're funy money would become 5 times more worthless.Comment is buried, click here to see the rest.
bdbrApr 23, 2011
The big difference is the Chinese have a choice; their currency can (and likely will) get stronger. The People’s Bank of China recently said that they're considering an upward revaluation of the currency.
The US has no choice, because it has borrowed trillions of dollars with no clue of how to ever pay it back. All they can do is weaken the currency to make the debt less painful.
ect5150Apr 23, 2011
Take that one step further on China though - what happens to their exports when they let the currency get stronger?
bdbrApr 23, 2011
Of course that's the trade-off, but keeping their currency artificially weak has made imported raw materials more expensive, and their already-small margins become smaller.
My point is: it's a choice for them that they can quickly and easily change. The US can only quickly change their situation by defaulting.