In plain and simple text, why $ so low.

[K9Torro]

Ok , can anyone tell me in plain and simple text form why the U.S. dollar is falling so low, I used to enjoy trips to the EU for vacations , when they adopted the Euro these trips became somewhat less enjoyable , now they are downright painful. Also I remember in the not so distant past when the our friends in Maple Leaf land were lagging behind us at around .70 cents now they are equal or higher ?

What exactly has happened for our dollar to be so worthless ?

In simple terms WTF ???

Todd

[Mo_Gearhead]

Simple?? hummmm......

We import/purchase/buy more goods from other countries than we sell to them. We buy 'hard' products ...they get paper dollars.

Our (USA) National Debt/Trade Deficit climbs ... these countries look at our paper (money) and say...do we really want/need more of this ...paper???

[Zef]

When your annual salary is 100 K and you spend annualy 150 K...!

[Scott R]

In Germany, Hamburg actually, for work two weeks ago and we had a beer and a burger and crisps, there were two of us and we both had the same thing. It was $72 US. And we did this for a a "cheap meal."

[TerryBPP]

Our paper money output exceeds our assets.

[WI wide body]

Basically it's because our dollars are simply not worth as much as they were previously in relation to the currency of other nations.

This is caused by a variety of reasons (our huge trade imbalance is also key) but the bottom line is it's caused by our government spending more more than they take in. Then there are only two ways that they can finance their deficit spending: they can either borrow from other nations (this is mostly done by selling the debt to foreign nations) or they can print more money. The latter is also the main reason for inflation.

And that's exactly what the azzholes in Washington are doing at this very moment. They even spend ALL of the excess money taken in from current Social Security payments. They do this while pretending that they are concerned about the coming SS shortfall that is sure to occur. I would like just one time for the TV talking heads to ask these immoral jerks how they can pretend to be concerned about SS while basically stealing the curent excess funds being paid in to SS..

BTW, this is only going to get worse. MUCH worse. President Bush has not even tried to raise a single penny to pay for the Iraq war. It is possibly the only war in the history of the world to be funded by deficit spending. This is what can happen when we have a low IQ president who has probably never in his entire life paid a utility bill, a tax bill, or balanced his checkbook.

Then when all of the unfunded debt (that means the cost of future promised programs such as SS and healthcare and taking care of the Iraq vets) comes due and is factored in...coupled with when all those clever little foreign guys who are accumulating our debt decide they want to be paid...it will most likely result in a sort of chaotic economic perfect storm such as our nation has never before seen.

Goobers worry about terrorism. What they should be worrying about is the above.

But not to worry. As the scumbag politicians know very well, they will be long gone when this finally occurs and it will be our children and grandchildren who will be left to suffer and deal with it.

Sorry for the rant, but I think about this every time I see a politician carrying a bible or hear President Bush and his trademark "God bless America" bull*****.

[island911]

WI, relax. ....you should be happy to know that you have it wrong.

Terry is close, but it is not so much the paper money as it is a problem with the virtual bank/loan money.

[David]

I'm with WI on this one. This scares the crap out of me. Sure the GDP is still higher than the debt, but the debt is closing in on it.

[WI wide body]

Originally Posted by island911

WI, relax. ....you should be happy to know that you have it wrong.

Terry is close, but it is not so much the paper money as it is a problem with the virtual bank/loan money.

Do tell us exactly what I have wrong?

[island911]

Exactly? -that's tough, because you quite obviously are so far out in left field.

The questions is "can anyone tell me in plain and simple text form why the U.S. dollar is falling so low..?" You then use that to go on a rant about all the different ways it's Bush's fault. --such insight.

Ironically, part of your rant contains "This is what can happen when we have a low IQ president who has probably never in his entire life paid a utility bill, a tax bill, or balanced his checkbook."

Apparently you believe that national monetary policy is just like "balancing a checkbook." You likely also believe that Al Gores SS "Lock-box" would have been a viable solution as well. (again with a simplistic view of monetary policy).

Really, you are so far off base it's kind of funny. --so keep those nonsensical rants coming. Remember, the more you rant, the more correct you must be.

[WI wide body]

Originally Posted by island911

Exactly? -that's tough, because you quite obviously are so far out in left field.

The questions is "can anyone tell me in plain and simple text form why the U.S. dollar is falling so low..?" You then use that to go on a rant about all the different ways it's Bush's fault. --such insight.

Ironically, part of your rant contains "This is what can happen when we have a low IQ president who has probably never in his entire life paid a utility bill, a tax bill, or balanced his checkbook."

Apparently you believe that national monetary policy is just like "balancing a checkbook." You likely also believe that Al Gores SS "Lock-box" would have been a viable solution as well. (again with a simplistic view of monetary policy).

Really, you are so far off base it's kind of funny. --so keep those nonsensical rants coming. Remember, the more you rant, the more correct you must be.

So you actually don't have anything at all to refute what I wrote? No problem.

But let me try to help you out. I did a tiny bit of quick "research" and came up with the following from some guy named Barker who is obviously smarter than I (he gets paid for it ) and lays it out much clearer. Please advise if in your expert opinion he also is "so far off base it's kind of funny" and that like me he thinks that if "the more he rants" then the more correct he will be?

"What causes this drop in dollar value?

1. Trade deficits, the US is importing 800 billion more then its exporting and the dollars planned decline by the Bush people has not improved its deficit.

2. Mounting foreign debt, the Bush people have out spent every administration in history and we borrow from the World Bank, China and Japan to float this war in Iraq and other projects for a new American century.

3. Loss of confidence is growing across the globe. Nothing requires International investors to Continue to invest in the USA or holding US assets they now own.

4. Winds of war and strife drive down investor's confidence. As we threaten Iran and others we become the hornet's nest of angry bees and tend to upset the quiet of economic stability

5. Economic sanctions against Iran and others tend to reflect back on our own economic stability. Iran is reacting to our pressure by threatening to pull out of the Nuclear Non Proliferation Treaty causing many to question the future peace process.

6. Coalitions of defiance such as Hugo Chaves of Venezuela and Evo Morales of Bolivia and others to form an anti American alliance and drive the dollar away using oil as a weapon.

Most of these are caused by misguided or aggressive arrogant government policy. If we do not lose total control, perhaps the next administration can repair some of the damage by sound fiscal policy and improved diplomatic measures. Yet, daily we see the loss of prestige and confidence. Since almost two years of the current Bush policy remains, it may be enough to crush the once-mighty dollar.

The USA is under the auspice of people that profit from higher oil prices and war, so for them this is a boom time and the decline of the dollar is not their concern. The rest of us are not making billions off the war or increased petroleum prices. Nor are we getting rich from future options like Cheney is from Halliburton or the Bush and Bin Laden families are from the Carlyle Group. These people will simply shift the dollars to euros and take the loss because they are wealthy beyond measure.

What can we do to offset this wolf at our doorsteps?

Investing in other currencies may precipitate the decline, but might help diversify your own assets and give you some long-term protection. Changing unsound economic policies and foreign policies that drive down the value of the dollar is essential. But, most of all, Pray.

Good luck America we are going to need it."

[Chocaholic]

Wait a minute fellas. The popcorn isn't done popping yet. Hold on.....just a few seconds...wait....wait...wait.....DING!

Okay....carry on.

[WI wide body]

Originally Posted by island911

Exactly? -that's tough, because you quite obviously are so far out in left field.

The questions is "can anyone tell me in plain and simple text form why the U.S. dollar is falling so low..?" You then use that to go on a rant about all the different ways it's Bush's fault. --such insight.

Ironically, part of your rant contains "This is what can happen when we have a low IQ president who has probably never in his entire life paid a utility bill, a tax bill, or balanced his checkbook."

Apparently you believe that national monetary policy is just like "balancing a checkbook." You likely also believe that Al Gores SS "Lock-box" would have been a viable solution as well. (again with a simplistic view of monetary policy).

Really, you are so far off base it's kind of funny. --so keep those nonsensical rants coming. Remember, the more you rant, the more correct you must be.

Actually, by your non-sensical inference to "Al Gores SS lockbox" I sense that what you really didn't like was my little shot at President Bush. I apologize for Bush being such a basically stupid man...but as people like to say now...it is what it is.

[Moneyguy1]

Monetary problems could fill books. There is some sense in leaving the SS fund alone and not raiding it. IOUs are not good. The deficit is partially responsible. The interest on 9 trillion has a role to play. The money paid annually on interest is not available for other programs such as SS, MEdicare, "no child left behind", the infrastructure and such. There is much, much more.

[WI wide body]

Originally Posted by Chocaholic

Wait a minute fellas. The popcorn isn't done popping yet. Hold on.....just a few seconds...wait....wait...wait.....DING!

Okay....carry on.

Just don't eat more than two boxes a day. Some guy from Denver is filing suit that it caused him to get "popcorn lung" and you sure don't want to make it make it a class action deal.

[WI wide body]

Originally Posted by Moneyguy1

Monetary problems could fill books. There is some sense in leaving the SS fund alone and not raiding it. IOUs are not good. The deficit is partially responsible. The interest on 9 trillion has a role to play. The money paid annually on interest is not available for other programs such as SS, MEdicare, "no child left behind", the infrastructure and such. There is much, much more.

You are correct. Most fools and especially the "expert" economists must not realize that our massive deficit is probably costing us around $300-400 BILLION a year in interest alone. Coupled with that soon to be $900 BILLION that goes flowing out of our nation per our trade imbalance and there is virtually no chance for our economy to continue as it is.

Some goobers think that "the housing crisis" is the culprit and this is laughable. Yes, it's a big and sad deal for the folks who allowed themselves to get into the mess. But what do they estimate to be the cost of a total bailout (which IMHO they should not do) about $300 billion to $700 billion I think.

However, that is not even equal to the USA dollars that go flying out of our nation in a single year per the trade imblance mess. People like island911 and other fools can pretend this is not important but it is in fact deadly important in the long term. And that "long term" is getting shorter and shorter!

[jluetjen]

This reply is about as plan and simple as I can say it.

[The Gaijin]

Originally Posted by K9Torro

Ok , can anyone tell me in plain and simple text form why the U.S. dollar is falling so low, I used to enjoy trips to the EU for vacations , when they adopted the Euro these trips became somewhat less enjoyable , now they are downright painful. Also I remember in the not so distant past when the our friends in Maple Leaf land were lagging behind us at around .70 cents now they are equal or higher ?

What exactly has happened for our dollar to be so worthless ?

In simple terms WTF ???

Todd

The same topic came up in another thread a few weeks ago. A much more balanced one at that. Try and find that one..

I have read everything so far on this one - and you will not learn much.

Basically supply and demand - US interest rates are low, return on investments is low, business opportunities are low right now - and with inflation going up a bit - so the dollar is low. A bit more complicated and interdependant that some would have you believe.


Yes! That link above!

[WI wide body]

Originally Posted by The Gaijin

The same topic came up in another thread a few weeks ago. A much more balanced one at that. Try and find that one..

I have read everything so far on this one - and you will not learn much.

Basically supply and demand - US interest rates are low, return on investments is low, business opportunities are low right now - and with inflation going up a bit - so the dollar is low. A bit more complicated and interdependant that some would have you believe.


Yes! That link above!

Yes, "supply and demand" can be said to be the cause of the low dollar...but that's like saying that lack of air is the reason for dying. The question is what CAUSES that supply/demand thing.

And it sure as hell is not simply "interest rates are low..." or anything similar.

The reasons ARE listed above in a post and if you can point out specifically why any of those reasons are incorrect we will certainly enterrtain your input.

[island911]

Originally Posted by jluetjen

This reply is about as plan and simple as I can say it.

Well done John.