Has the Dollar Collapsed?

[Gedo_Boy]

http://www.larouchepac.com//files/pdfs/071108_dollar_system_crash.pdf

[*jr]

Not yet. But not to mention the Canadian looney, against which the US dollar has lost much to face in the last few weeks, is still kicking strong, not to mention the Euro.
That tells me the bUsh junta had printed too much dollar paper out of nothing again....now the darn thing is just a paper, and the Chinese aren't takin it no more.

[Gedo_Boy]

Yeah, the people trusted the dollar due to the backing of strong industry & economy but there is only so much paper you can print before it loses value.

Kinda like there is only so much money you can loan to a rich person before you start to suspect that you've loaned him more money than he can pay back.

[*jr]

Fock, It's beyond the pale the world markets are relying on US paying its dept printing more money out of nothing based on nothing, just simple printing white paper, but with greenish looking.

[musika man]

^^^^

weak $$$ means more exports, more tourist $$$ and americans spending less $$$ on foreign made and purchasing more home made goods-products. good for employment.

[Gedo_Boy]

which might cause runaway inflation since prices will rise to accomodate inflation and more importantly will cause banks worldwide to drop their reserves of US dollars which is more important.

BTW, no company hires when they're posting losses........I'm only getting 1/2 my quarterly bonus this time

[*jr]

with all honest, on today's competing market, the man who's printing fake Dollars is more entrepreneur more or less than the federal reserve bank of New York.

[musika man]

[quote="Gedo_Boy"]which might cause runaway inflation since prices will rise to accomodate inflation and more importantly will cause banks worldwide to drop their reserves of US dollars which is more important.

BTW, no company hires when they're posting losses........I'm only getting 1/2 my quarterly bonus this time [/quote]

^^^

inflation is a tricky subject, higher wages and bush's deficits will contribute to higher inflation and may trigger higher interest rates but since the $$$ is cheaper, prices will still be low even if they rise with higer interest rates.
cheap $$ is good for the manufacturing and tourist sectors and employment in these companies should rise and they should not experience losses unless mis-managed.

[FAH1223]

The euro, worth 83 cents in the early George W. Bush years, is at $1.45.

The British pound is back up over $2, the highest level since the Carter era. The Canadian dollar, which used to be worth 65 cents, is worth more than the U.S. dollar for the first time in half a century.

Oil is over $90 a barrel. Gold, down to $260 an ounce not so long ago, has hit $800.

Have gold, silver, oil, the euro, the pound and the Canadian dollar all suddenly soared in value in just a few years?

Nope. The dollar has plummeted in value, more so in Bush's term than during any comparable period of U.S. history. Indeed, Bush is presiding over a worldwide abandonment of the American dollar.

Is it all Bush's fault? Nope.

The dollar is plunging because America has been living beyond her means, borrowing $2 billion a day from foreign nations to maintain her standard of living and to sustain the American Imperium.

The prime suspect in the death of the dollar is the massive trade deficits America has run up, some $5 trillion in total since the passage of NAFTA and the creation of the World Trade Organization in 1994.

In 2006, that U.S. trade deficit hit $764 billion. The current account deficit, which includes the trade deficit, plus the net outflow of interest, dividends, capital gains and foreign aid, hit $857 billion, 6.5 percent of GDP. As some of us have been writing for years, such deficits are unsustainable and must lead to a decline of the dollar.

A sinking dollar means a poorer nation, and a sinking currency has historically been the mark of a sinking country. And a superpower with a sinking currency is a contradiction in terms.

What does this mean for America and Americans?

As nations realize that the dollars they are being paid for their products cannot buy in the world markets what they once did, they will demand more dollars for those goods. This will mean rising prices for the imports on which America has become more dependent than we have been since before the Civil War.

U.S. tourists traveling to the countries whence their ancestors came will find that the money they saved up does not go as far as they thought.

U.S. soldiers stationed overseas will find the cost of rent, gasoline, food, clothing and dining out takes larger and larger bites out of their paychecks. The people those U.S. soldiers defend will be demanding more and more of their money.

U.S. diplomats stationed overseas, students and businessmen are already facing tougher times.

U.S. foreign aid does not go as far as it did. And there is an element of comedy in seeing the United States going to Beijing to borrow dollars, thus putting our children deeper in debt, to send still more foreign aid to African despots who routinely vote the Chinese line at the United Nations.

The Chinese, whose currency is tied to the dollar, and Japan will continue, as long as they can, to keep their currencies low against the dollar. For the Asians think long term, and their goals are strategic.

China — growing at 10 percent a year for two decades and now growing at close to 12 percent — is willing to take losses in the value of the dollars it holds to keep the U.S. technology, factories and jobs pouring in, as their exports capture America's markets from U.S. producers.

The Japanese will take some loss in the value of their dollar hoard to take down Chrysler, Ford and GM, and capture the U.S. auto market as they captured our TV, camera and computer chip markets.

Asians understand that what is important is not who consumes the apples, but who owns the orchard.

Other nations that have kept cash reserves in U.S. Treasury bonds and T-bills are watching the value of these assets sink. Not fools, they will begin, as many already have, to divest and diversify, taking in fewer dollars and more euros and yen. As more nations abandon the dollar, its decline will continue.

The oil-producing and exporting nations, with trade surpluses, like China, have also begun to take the stash of dollars they have and stuff them into sovereign wealth funds, and use these immense and growing funds to buy up real assets in the United States — investment banks and American companies.

Nor is there any end in sight to the sinking of the dollar. For, as foreigners demand more dollars for the oil and goods they sell us, the trade deficit will not fall. And as the U.S. government prints more and more dollars to cover the budget deficits that stretch out — with the coming retirement of the baby boomers — all the way to the horizon, the value of the dollar will fall. And as Ben Bernanke at the Fed tries to keep interest rates low, to keep the U.S. economy from sputtering out in the credit crunch, the value of the dollar will fall.

The chickens of free trade are coming home to roost.

http://news.yahoo.com/s/uc/20071102/cm_ ... p18HOs0NUE

[*jr]

Ask yourself this question? Who and what backs up the US dollar?

Its not Gold, its not silver, its not George Bush, and its not Iraq's oil?

It's nothing....the US dollar is printed without anything to back behind it....just printing press having blank paper.

The US Dollar is based on nothing...Zero....

Its now being traded on world currency...but tht's comming to an end

Iraq took the brave move and rid itself trading US dollar on their Oil....and guess what happen....Iran is at same course

China is buying American debt, because Americans are still buying from Walt Mart, on cheap....cheap sh!t that can't last two months.

But China owns 4 trillion dollars of the 7 trillion dollars America owns to rest of the world.

[QansaGabeyle]

I wonder, if Americas economy collapses, will other nations allow Americans to live and work in their countries? I am already self teaching myself the Cantonese language.

[*jr]

next time you are at the Wal Mart, see if you can spot me...

Just before someone is in front of me at the cashier, I turn I ask them, "Hey you still owe money to China" and await their response....they fall into confusion. They think they are to pay extra, and they might ask of "what money"?

There I ask “China, you know, China”, am asking if they owe of 20 dollars. Generally my colleague is filming the entire episode so we can make it into the film. Their expression is what we want. Sometimes we pay their grocery bill if they get upset during taping.

We have blast filming them.....

[Gedo_Boy]

hey what WAL-MART are you talking about and what exactly do you do?

[*jr]

We are now filming state-wide Wal-Mart stores...

We're hopeful to film border Mal-Mart stores states too

[Gedo_Boy]

is this like an independent film?

what are you doing it for?