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Too big to fail
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Question for the economists - armchair or therwise: the fall of the dollar
I'm curious about the long-term effects of the continuing decline of the dollar, particularly with respect to the fact that some countries, for example North Korea and Japan, have announced that they're diversifying their reserves from the $ to a considerable percentage in €
Is the end of the dollar hegemony at hand? Discuss.
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"You go to the track with the Porsche you have, not the Porsche you wish you had." '03 E46 M3 '57 356A Various VWs |
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03-10-2005, 10:24 AM
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A Man of Wealth and Taste
Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
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You might look at it this way...all those dollars the foreigners are holding have just been devalued....in other words they gave us free money....
the value of the dollar before the decline - the value of the dollar today = the free money they gave us It makes out goods and services more cvompetive in the world markets because we are now cheaper than our competition... The USA is still the largest economy in the world...so there is no way any country can ignore the USA...
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03-10-2005, 10:29 AM
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Registered
Join Date: Dec 2004
Location: Brooklyn, USA
Posts: 1,908
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I think that is South Korea and Japan...
Anyways, yes the US dollar may take a hit, it is pretty weak right now.. But considering how the France are striking to keep the 35 hour work-week, the German have record unemployment and the continent is sinking under a morass of low birthrates, Islamification and welfare-statism - I would not be putting my retirement $$ into Euros. Short term - buy Aussie dollars. |
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03-10-2005, 11:17 AM
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Too big to fail
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Um, yes, South Korea. Sorry, typing on an empty stomach...
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"You go to the track with the Porsche you have, not the Porsche you wish you had." '03 E46 M3 '57 356A Various VWs |
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03-10-2005, 11:28 AM
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Registered
Join Date: Mar 2004
Location: North Vancouver bc
Posts: 5,293
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long term effects -American products easier to export. Imported products more expensive for consumers.
The dollar would be even weaker if it wasn't for COMMUNIST China buying greenbacks to shore up the US dollar. The Chinese are going to purchase natural resource companies with the money e.g. - Venezuelan oil (Venezuela is the fifth largest source for US oil), Canadian Nickel (an essential commodity for military purposes). |
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03-10-2005, 12:09 PM
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